Romania’s Competition Council has fined the biggest local healthcare service provider, MedLife, with RON 865,000 (EUR 186,000) for breaching competition rules.

The amount represents about one fifth in the group’s net profit in the first quarter.

The Council accuses three companies in the MedLife group, namely MedLife, Genesys Medical Clinic and Rur Medical, of inking agreements that breach competition law. The agreements restricted competition on the stem cell harvesting and storing services segment. All companies have admitted wrongdoing entirely.

The fines against MedLife are part of a wider Competition Council investigation on the stem cell market, in which five local maternities and two stem cell banks have already been fined RON 1.2 million (EUR 258,000) for anti-competition deals.

MedLife’s shares are floating on the Bucharest Stock Exchange and their price dropped by 2.5% on Wednesday, June 27, after the fine was made public.

MedLife made had a turnover of RON 623.2 mln (EUR 136.4 mln) last year, 24% higher compared to 2016. The company also turned to RON 10 mln (EUR 2.15 mln) profit in 2017 from RON 1.2 mln loss a year before.

editor@romania-insider.com