EC Fines Illumina a Record $476 Million Over Deal for Early-Cancer Screening Company

The European Commission fined San Diego-based biotech giant Illumina €432 million ($476 million) on Wednesday for acquiring Grail before obtaining approval from the commission. In a statement, an Illumina spokesperson said the company plans to appeal the decision. 

In July 2021, the commission opened an investigation into Illumina’s acquisition of Grail, a U.S.-based company that is developing early-cancer screening tests. The companies completed their merger in August 2021 before the EC commission’s investigation wrapped up. 

“If companies merge before our clearance, they breach our rules. Illumina and Grail knowingly and deliberately did so by implementing their tie-up as we were still investigating,” said EC competition chief Margrethe Vestager in a statement. 

The commission fined Illumina 10% of the company’s aggregated turnover, the maximum amount under EU merger rules. The commission’s previous largest merger fine was $125 million against Altice, according to CNBC. 

“We believe that the fine announced by the European Commission today – while expected and accrued for over the last year – is unlawful, inappropriate and disproportionate. We will appeal today’s decision,” the Illumina statement said.

The company says the fine has had no immediate financial impact on its business. Illumina had set aside $453 million in August 2022 to prepare for potential fines, Fierce Biotech reported. 

If Illumina wins its appeal, which is expected to be decided early next year, the fine would be repaid, according to the company’s spokesperson.