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Document 62014TJ0682

    Judgment of the General Court (Ninth Chamber) of 12 December 2018.
    Mylan Laboratories Ltd and Mylan, Inc. v European Commission.
    Competition — Agreements, decisions and concerted practices — Market for perindopril, a medicinal product intended for the treatment of cardiovascular diseases, in its originator and generic versions — Decision finding an infringement of Article 101 TFEU — Patent dispute settlement agreement — Potential competition — Restriction of competition by object — Balance between competition law and patent law — Imputation of the unlawful conduct — Fines.
    Case T-682/14.

    Judgment of the General Court (Ninth Chamber) of 12 December 2018 –
    Mylan Laboratories and Mylan v Commission

    (Case T‑682/14)

    (Competition — Agreements, decisions and concerted practices — Market for perindopril, a medicinal product intended for the treatment of cardiovascular diseases, in its originator and generic versions — Decision finding an infringement of Article 101 TFEU — Patent dispute settlement agreement — Potential competition — Restriction of competition by object — Balance between competition law and patent law — Imputation of the unlawful conduct — Fines)

    1. 

    Agreements, decisions and concerted practices — Adverse effect on competition — Criteria for assessment — Description of an undertaking as a potential competitor — Real, concrete prospects of market entry — Criteria — Essential evidence — Ability of the undertaking to enter the relevant market — Sufficiently fast entry — Perception of operators present on the market

    (Art. 101(1) TFEU)

    (see paras 46-65)

    2. 

    Agreements, decisions and concerted practices — Adverse effect on competition — Criteria for assessment — Description of an undertaking as a potential competitor — Criteria — Essential evidence — Ability of the undertaking to enter the relevant market — Generic medicines undertaking — Obstacles linked to the originator company’s patents and to the technical, regulatory and financial difficulties faced by the generic undertaking — Real concrete possibilities of overcoming those difficulties and entering the market

    (Art. 101(1) TFEU)

    (see paras 87-133)

    3. 

    Agreements, decisions and concerted practices — Adverse effect on competition — Criteria for assessment — Distinction between infringements by object and infringements by effect — Infringement by subject-matter — Whether sufficiently damaging — Assessment

    (Art. 101(1) TFEU)

    (see paras 150-161)

    4. 

    Competition — EU rules — Substantive scope — Amicable agreement on patents — Included — Balancing of patent law and the competition rules

    (Art. 101(1) TFEU; Council Regulation No 1/2003)

    (see paras 163-181)

    5. 

    Agreements, decisions and concerted practices — Adverse effect on competition — Amicable agreement on patents — Agreement concluded between an originator company and a generic medicine undertaking — Agreement containing clauses prohibiting patent challenges and clauses prohibiting the marketing of products — Inducive reverse payment received by the generic undertaking — Restriction by object

    (Art. 101(1) TFEU)

    (see paras 183-209)

    6. 

    Agreements, decisions and concerted practices — Adverse effect on competition — Amicable agreement on patents — Agreement concluded between an originator company and a generic medicine undertaking — Agreement containing clauses prohibiting patent challenges and clauses prohibiting the marketing of products — Payment received by the generic undertaking — Classification as an inducive reverse payment — Conditions

    (Art. 101(1) TFEU)

    (see paras 201-221)

    7. 

    Action for annulment — Purpose — Decision based on several pillars of reasoning, each sufficient to justify the operative part — Annulment of such a decision — Conditions

    (Art. 263 TFEU)

    (see paras 236-240)

    8. 

    Fundamental rights — Charter of Fundamental Rights of the European Union — Principle that offences and penalties must have a proper legal basis — Scope — Foreseeability of the infringing nature of the penalised conduct — Patent dispute settlement agreement between an originator company and a generic undertaking — Agreement contrary to competition law — Generic undertaking which could not have been unaware of the anti-competitive nature of its conduct

    (Art. 101(1) TFEU; Charter of Fundamental Rights of the European Union, Art. 49(1))

    (see paras 243-255)

    9. 

    Competition — EU rules — Infringements — Committed intentionally or negligently — Meaning — Undertaking not capable of being unaware of the anti-competitive nature of its conduct

    (Art. 101(1) TFEU; Council Regulation No 1/2003, Art. 23(1))

    (see paras 259-268)

    10. 

    Competition — Fines — Amount — Determination — Methodology established by the Guidelines not applied — Calculation method — Deterrent effect of the fine — Need to set an amount higher than the benefit derived from the infringement

    (Art. 101(1) TFEU; Council Regulation No 1/2003, Art. 23; Commission notice 2006/C 210/02, point 37)

    (see paras 274-306)

    11. 

    Competition — Administrative procedure — Observance of the rights of the defence — Statement of objections — Production of additional evidence after sending the statement of objections — Lawfulness — Conditions

    (Art. 101(1) TFEU; Council Regulation No 1/2003)

    (see paras 310-317)

    12. 

    Competition — EU rules — Infringements — Attribution — Parent company and subsidiaries — Economic unit — Criteria for assessment — Exercise of decisive influence over the conduct of the subsidiary which may be inferred from a set of indicia relating to the economic, organisational and legal links with its parent company — Circumstances allowing the existence of decisive influence to be established — Influence of the parent company on the subsidiary’s decision-making processes — Actual control of the board of directors of the subsidiary — Obligation to consolidate the subsidiary’s annual financial statements with those of the parent company

    (Art. 101(1) TFEU)

    (see paras 331-369)

    Re:

    Application under Article 263 TFEU for annulment of Commission Decision C(2014) 4955 final of 9 July 2014 relating to a proceeding under Article 101 and Article 102 TFEU [Case AT.39612 — Perindopril (Servier)] in so far as it concerns the applicants and, in the alternative, for annulment or reduction of the fine imposed on the applicants by that decision.

    Operative part

    The Court:

    1. 

    Dismisses the action;

    2. 

    Orders Mylan Laboratories Ltd and Mylan, Inc. to pay the costs.

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