The Competition Council approved the creation of the pharmaceutical company Viatris Inc. in Morocco, born from the merger between Mylan NV and Upjohn Inc., a subsidiary of Pfizer. This decision comes after the formal authorization granted by the permanent commission of the institution which noted “the absence of observations or objections likely to compromise competition on the market”noted Barlamane.com.
In a ruling published in the last Official Bulletin, the Competition Council specified that this decision is based on the provisions of Law No. 104.12 relating to freedom of prices and competition, promulgated by Dahir No. 1.14.116 of June 30, 2014, as well as on Law No. 20.13 creating the Competition Council, adopted by Dahir No. 1.14.117. Additional texts, notably decrees n°2.14.652 and n°2.15.109, were also taken into account.
A merger analyzed closely
After receiving all the documents relating to the economic concentration operation on October 18, 2024, the report prepared was presented to the standing committee at its meeting on December 2, 2024. This report included a detailed analysis of the operation as well as recommendations intended to ensure its compliance with the requirements of competition and market protection legislation.
The council noted that no observations “had not been issued by market participants or relevant stakeholders. In accordance with Article 13 of Law No. 104.12, economic concentration operations may be notified as long as the parties meet the legal conditions and submit a complete file.”
As a reminder, the Competition Council imposed a fine of 7.6 million dirhams on Viatris Inc., due to the lack of prior notification of the merger. According to information reported by the Reuters agency, this sanction represents 2.5% of the company’s annual revenues in Morocco for the previous year. “The fine has been paid in full and the company has waived any recourse”Barlamane.com learned from its sources.
Viatris Inc. was created in 2020 following the merger between Mylan, already established in Morocco, and Upjohn, a division of Pfizer. However, notification of this transaction was not provided to the board until November 2024, well after the merger was completed. Under Article 19 of Law No. 104.12, the realization of an economic concentration without prior notification exposes the parties to financial sanctions of up to 5% of the annual turnover achieved in Morocco, as well as to information orders under penalty.
In addition to sanctions, the council has the power to condition its authorization on the implementation of measures aimed at guaranteeing fair and sufficient competition on the market. These measures may include obligations contributing to economic progress compensating for observed harm to competition.
