The Competition Commission has referred GE South Africa, GE Medical Systems South Africa, Siemens Healthcare, and Philips South Africa Commercial to the Competition Tribunal for prosecution.<\/p>\n\n\n\n
The referral concerns alleged anticompetitive conduct in the servicing, repair, and maintenance of diagnostic medical imaging equipment in the country.<\/p>\n\n\n\n
According to the commission, the companies operate nationwide, supplying and servicing diagnostic medical imaging (DMI) equipment.<\/p>\n\n\n\n
This includes X-ray, ultrasound, magnetic resonance imaging (MRI), computed tomography (CT) scanners and PET\/CT systems. <\/p>\n\n\n\n
However, complaints to the commission alleged that these groups had denied or restricted independent clinical engineers’ access to the means of repairing and maintaining this equipment.<\/p>\n\n\n\n
“This equipment is essential diagnostic infrastructure, enabling South Africa\u2019s healthcare practitioners to see inside the body, detect and monitor diseases, make accurate diagnoses, plan appropriate treatment and, in some cases, prevent disease,” the commission said.<\/p>\n\n\n\n
“Reliable DMI equipment is particularly important in South Africa, where healthcare providers must respond to the overlapping burden of cancer, cardiovascular disease, diabetes and hypertension, alongside HIV and tuberculosis.”<\/p>\n\n\n\n
The commission said that when this equipment is unavailable, diagnostic delays can postpone treatment and worsen patient outcomes. <\/p>\n\n\n\n
“The impact is especially severe in public and rural facilities, where prolonged downtime and limited access to service providers may leave hospitals unable to diagnose and treat patients timeously,” it said.<\/p>\n\n\n\n
Because DMI systems cost millions of rand and typically 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. <\/p>\n\n\n\n
“Access to functioning DMI equipment is therefore directly linked to the affordability and accessibility of healthcare, and to patients\u2019 Constitutional right of access to healthcare services,” the commission said.<\/p>\n\n\n\n
The commission’s investigation revealed allegations that the companies in question denied or restricted independent clinical engineers’ access to several key measures needed to keep the equipment functioning.<\/p>\n\n\n\n
This included spare parts, diagnostic software, service keys, technical information and the specialised training required to compete effectively with the respondents in the DMI servicing, repair and maintenance aftermarket.<\/p>\n\n\n\n
“The Commission alleges that this conduct contravenes section 8(1)(c), alternatively section 8(1)(d)(ii), of the Competition Act,” it said.<\/p>\n\n\n\n
Section 8(1)(c) of the Act prohibits a dominant firm from engaging in an exclusionary act. <\/p>\n\n\n\n
Section 8(1)(d)(ii) prohibits a dominant firm from taking specifically exclusionary actions, such as refusing to supply scarce goods or services to a competitor or customer when supplying those goods or services is economically feasible.<\/p>\n\n\n\n
“The alleged restrictions limit competition in the aftermarket for servicing and repairs, contributing to higher costs and fewer repair options for healthcare facilities.”<\/p>\n\n\n\n
Following the referral, the Competition Tribunal will determine whether the respondents\u2019 conduct contravened the Act and, if so, impose appropriate remedies.
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