The European Commission (EC) has imposed a fine of €146m on nine pharma companies, including Ranbaxy Laboratories, for blocking the entry of cheaper generic drug of Lundbeck's anti-depressant, citalopram.
Lundbeck agreed with each of the nine companies in 2002 to delay the launch of generic medicines of its anti-depressant.
Ranbaxy Laboratories was fined more than Rs800m (€10.32m), Lundbeck €93.8m, while Merck with €21.4m, of which €7.77m was imposed jointly on Merck and its former subsidiary Generics UK.
In 2009, the EU published a report on the pharmaceutical industry highlighting that the "pay-for-delay" agreements between brand-name drug companies and generic manufacturers have resulted in consumers paying more than 20% for medicines.
Because of the resulting higher consumer costs, the US Supreme Court declared that US regulators could challenge deals between brand-name drug firms and generic competitor.