Several of South Africa’s largest suppliers of diagnostic imaging equipment have been referred by the the Competition Commission to the Competition Tribunal for prosecution, amid allegations that they prevented other firms from servicing, repairing and maintaining their systems, reports Business Day.
Under scrutiny are GE South Africa, GE Medical Systems South Africa, Siemens Healthcare and Philips South Africa, whose equipment includes X-ray, ultrasound, magnetic resonance imaging, computed tomography and PET/CT systems.
The commission alleges their conduct contravenes section 8(1)(c) or, alternatively, section 8(1)(d)(ii) of the Competition Act, contributing to higher costs and fewer repair options for healthcare facilities. If found guilty of contravening the Act, they can be fined up to 10% of their turnover for the period of the contravention.
GE HealthCare said it had been fully co-operating with the commission and would participate in the tribunal’s proceedings, while Siemens and Philips had not responded to Business Day’s requests for comment at the time of publication.
Section 8(1)(c) of the Competition Act prohibits a dominant firm from engaging in an exclusionary act, while section 8(1)(d)(ii) prohibits a dominant firm from refusing to supply scarce goods or services to a competitor or customer when doing so is economically feasible.
The commission said its investigations had revealed the companies allegedly denied or restricted independent clinical engineers from accessing spare parts, diagnostic software, service keys, technical information and the training required to compete effectively with the firms in the aftermarket for servicing, repairing and maintaining equipment.
Its investigation was prompted by the findings of a scoping study it conducted into the market, said spokesperson Siyabulela Makunga. The investigation began in 2021.
The commission said if this critical equipment were unavailable, it could delay diagnoses and worsen patient outcomes, and that the impact is especially severe in public and rural facilities.
The commission said imaging systems were expensive and typically intended to remain in service for 10 to 15 years.
“Timely access to software updates, spare parts, preventive maintenance and repairs is essential to extend their operational life, contain healthcare costs and maintain continuity of care. Access to functioning diagnostic medical imaging equipment is therefore directly linked to the affordability and accessibility of healthcare and to patients’ constitutional right of access to healthcare services,” it said.
Its latest action comes hard on the heels of its move against pharmaceutical manufacturer Adcock Ingram, which it referred to the tribunal for prosecution for allegedly overcharging patients for its kidney dialysis products during the Covid-19 pandemic.
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