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SCA, Ontex among companies faced with fines
June 1, 2016
By: Karen McIntyre
Editor
The CNMC (National Commission Markets and Competition) of Spain has levied a total of nearly €1.3 billion in fines to seven manufacturers of absorbent adult incontinence products doing business in the Spanish market. Citing article one of the Law on Protection of Competition (LDC) infringement, the commission alleges that these manufacturers have been fixing prices on adult diapers and other incontinence aids funded by the National Health Service since 1996. These products are purchased in pharmacies for outpatients. The companies accused of price fixing include Arbora & Ausonia (succeeded by Procter & Gamble Spain), Laboratories Indas, SAU, SCA Hygiene Products, Laboratorios Hartmann and Ontex. With the collaboration of the Spanish Federation of Healthcare Technology Companies (FENIN), these companies allegedly reached agreements and fixed selling prices to wholesale distributors of products sold through pharmacies from December 1996 to January 2014.
In Spain, diapers for non-hospitalized adults with severe incontinence can be obtained directly from pharmacies, with a corresponding prescription or through networks of healthcare or social care (primary care centers, nursing homes, etc.). In both cases these products are financed by Social Security. With inpatients. the medical center acquires the product through competitive bidding, which considerably lowers its prices. The CNMC says the supplies to pharmacies fixed prices of adult incontinence items at the expense of the public. Already several of the accused companies have announced plans to refute these claims. On their company websites, both SCA, whose share of the fine was reported at €294 million, and Ontex, whose share of he fine is €5.5 million, announced plans to appeal these decisions. Procter & Gamble has been granted immunity due to its cooperation in this investigation and will not pay a fine.
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