Sanofi Investigation: What Message Does the EU Send to the Pharma Industry?

The European Commission recently carried out a dawn raid at Sanofi, a global pharmaceutical company with a strong position in the seasonal flu vaccine market.

According to the Commission, the inspection is part of an inquiry into potential infringements of EU competition law — in particular, the rules prohibiting abuse of a dominant market position. The central question is whether Sanofi, by leveraging its strong market power, engaged in practices that unfairly discredited competitors and undermined their market position.

2. Legal Framework and Competition Law Context

EU competition law — specifically Article 102 of the Treaty on the Functioning of the European Union (TFEU) — prohibits companies from abusing a dominant market position. This includes practices such as excluding competitors, discriminatory pricing, or unjustified market restrictions.

One form of abuse is so-called “disparagement”: when a company publishes or circulates statements that discredit a competitor’s products, limiting their ability to compete effectively.

3. Why Is the Vaccine Market Especially Sensitive?

The pharmaceutical industry — and vaccine production in particular — is highly regulated and structurally concentrated:

• High entry barriers (licensing, R&D costs, complex manufacturing processes)
• A few key players hold a significant share of the market
• Public authorities and health systems play a major role as large-scale purchasers

These factors mean that any dominant company is subject to close antitrust scrutiny, especially when new generic or alternative producers attempt to enter the market.

In Sanofi’s case, the Commission is not only looking at pricing practices, but also at whether the company engaged in exclusionary conduct in the seasonal flu vaccine market, possibly targeting competitors’ marketing or communication strategies.

4. Practical Takeaways for Market Players

4.1 Be Aware of Dominant Position

Companies with a significant market share in a narrow segment — such as influenza vaccines — must be careful that their communications, marketing campaigns, and dealings with competitors do not have exclusionary or restrictive effects.

4.2 Review Marketing and Communication Practices

Disparagement cases show that messages undermining a competitor’s product, even indirectly, can be risky — especially if not backed by reliable, objective data. Companies should implement internal compliance checks to review campaigns before launch.

4.3 Scrutinize Contracts and Distribution Agreements

Contractual arrangements such as exclusive distribution, loyalty discounts, or rebate schemes — even if not mentioned in the Sanofi case — are classic antitrust risk areas in pharma. Firms should ensure their contracts are vetted from both a competition and a regulatory perspective.

4.4 Documentation and Cooperation During Investigations

During inspections, the Commission expects companies to have robust record-keeping and communication systems in place and to cooperate with investigators. Importantly, the fact that a dawn raid has taken place does not mean the company has committed an infringement — the investigation itself is not a verdict.

Alongside legal strategy, companies should also prepare a communications response plan to protect their reputation. Legal and PR strategies need to be closely coordinated, as they may involve different — sometimes conflicting — priorities.

Conclusion

The Sanofi case is a clear signal to the entire pharmaceutical sector: a dominant market position is no shield against antitrust enforcement.

Companies should regularly review their compliance with competition rules — particularly in the areas of marketing, communications, contracts, and internal documentation. Failure to do so may expose them not only to reputational harm but also to fines of up to 10% of global turnover.

How We Can Help

Competition law compliance is not just a legal requirement — it is also a business safeguard.

Our firm assists clients with preventive internal audits, sets up effective compliance processes, and represents companies during competition law investigations and crisis situations.

If your business operates in the pharmaceutical or healthcare sector, contact us to ensure your market success is not put at risk by an unexpected regulatory investigation.