Five laboratories fined €49 million for acting in cartel during Covid pandemic

Hundreds of emails show laboratories considered boycott against bid to lower prices

Portugal’s five major analysis laboratories, as well as the association that represents them, have been ordered to pay fines of almost €49 million.

The AdC (Competition Authority) issued the fines after concluding that the laboratories acted in a cartel by fixing prices, and agreeing to share the analysis market, “especially during the pandemic, and with tests for Covid-19”.

The guilty five are Germano de Sousa, Redelab, Joaquim Chaves, Jorge Leitão Santos and Labeto laboratories, with the national association of laboratories equally found complicit.

In the AdC’s decision – to which SIC Notícias has had access – the authority lists hundreds of emails seized during the searches which prove that the laboratory groups even agreed to a boycott in response to the government’s intention to lower prices (to help people…)

“From March 2020, the laboratories concerned agreed on prices for the supply of COVID tests to NHS and ADSE users and imposed them in negotiations with the government. The laboratories in question also threatened to boycott the supply of COVID tests in retaliation for the updates (reductions) of agreed prices,” says the AdC.

The laboratories “can still appeal the decision to the Competitions Court” – and this may well be what happens, given the initial reaction from the national association.

“A serious attack on Justice”

The National Association of Laboratories is outraged, writes SIC.

“In a statement sent to SIC, the National Association of Laboratories considers the Competition Authority’s decision to be “a serious attack on justice”, based on incorrect premises.

“The National Association of Laboratories (ANL) expresses its total disagreement and indignation at the recent decision by the Competition Authority (AdC) condemning ANL for allegedly violating competition rules. This decision, characterised by factual and legal errors, represents a serious attack on justice and the integrity of the health insurance sector in Portugal (…). The AdC’s decision is unfair and was taken on the basis of incorrect premises, demonstrating a distorted interpretation of the facts and legal rules applicable to the sector, which resulted in a condemnation that does not reflect the association’s practices.”

The association concludes that, in its perspective, “the sector was essential in responding to one of the worst public health crises ever”, thus “this decision will irreparably affect the way in which private operators and the Ministry of Health work together“.

Source: SIC Notícias

Natasha Donn
Natasha Donn

Journalist for the Portugal Resident.

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