EU Launches Anti-trust Probe into J&J and Novartis

If the European Commission concludes that Johnson & Johnson and Novartis break European Union anti-trust laws, the EC could impose huge fines.

The European Commission has launched a detailed anti-trust investigation into concerns that US-based Johnson & Johnson may have paid the generic divisions of Switzerland’s Novartis to hinder the sale of generic versions of painkiller Fentanyl in the Netherlands.

The EC said this delay could have been caused by "contractual arrangements" between the two companies. If it concludes that these arrangements break European Union anti-trust laws, it could impose huge fines.

EU competition commissioner Joaquín Almunia said,"Paying a competitor to stay out of the market is a restriction of competition that the Commission will not tolerate."