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Jhonson & Jhonson investigated for abuse of dominant position

The European Commission has opened an investigation against the US company which, with the acquisition of Synthes Inc., could hinder competition in the market for suppliers of instruments and equipment for spinal surgery.

Jhonson & Jhonson investigated for abuse of dominant position

Johnson & Johnson is being investigated for activities that conflict with market rules, as it is deemed capable of occupying a dominant position in the medicine, pharmaceutical and orthopedic sectors. The European Commission has in fact opened an investigation against the US company for its plan to acquire Synthes Inc, a Swiss company active in the biomedical field, and merge it into the US giant. The EU commission explains that the investigations depend on the fact that such a merger “would bring together two of the leading suppliers of spine surgery instruments and equipment, strengthening Synthes' position as the leading player in the craniomaxillofacial equipment industry and strengthening Johnson & Johnson's position in the orthopedic sector”.

The European Commission therefore expresses "concern" about the possibility of a merger between the two companies. In fact, it is feared that the other competitors operating on the reference markets "may not be able to exercise a sufficiently strong activity" at an economic and competitive level. Furthermore, according to the EU Commission, "the removal of one of the main players from the market could have a negative impact from the point of view of innovation". And it is the task of the Commission precisely “to make sure that it is preserved real competition and maintained innovation, the only one that can guarantee adequate care for all patients” in the European Union, underlined Joaquin Almunia, vice president of the European Commission. The opening of the investigation, Brussels informs us, "does not affect the final result" of the same, but in any case the EU Commission will continue for 90 days, "until 19 March 2012" when it will issue its verdict.

An investigation is also underway against Johnson & Johnson by the European Antitrust for alleged violations of market rules regarding the analgesic Fentanyl, for which the US company is accused of having paid its competitors to prevent access to it on the dutch market.

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