U.S. biotech firm Illumina was hit with a record antitrust fine of $476 million (€432 million) by the European Union Wednesday for failing to secure regulatory approval from the bloc for its $7.1 billion deal to acquire cancer-screening test company Grail, months after the company was ordered to divest the acquisition.
European Commissioner for Europe fit for the Digital Age Margrethe Vestager speaks during a media ... [+]
In a statement, the European Commission said its investigation found that Illumina “intentionally breached” the bloc’s rules that require companies to not implement mergers until they have been approved by the bloc’s regulators.
The Commission alleges Illumina acted “strategically” by completing the deal before receiving approval, by weighing the quantum of any potential fine with a steep break-up fee for failing to complete the acquisition.
The bloc also accuses Illumina of considering “the potential profits it could obtain by jumping the gun,” even if it was later forced to divest the acquisition.
The Commission indicates it may have wanted to issue a steeper fine, but existing rules limit the amount to 10% of Illumina's annual turnover, which is approximately €432 million.
According to CNBC, the American firm plans to file an appeal against the fine.
In its earnings report for 2022, Illumina mentioned it has set aside $458 million—10% of its annual revenue for the year—for a potential EU fine.