News24 | Watchdog accuses GE, Siemens, Phillips of collusion linked to key medical equipment

General Electric SA, GE Medical Systems SA, Siemens Healthcare and Philips SA Commercial have been referred to the Competition Tribunal over alleged anti-competitive behaviour linked to medical imaging equipment repairs.

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• The Competition Commission says General Electric SA, GE Medical Systems SA, Siemens Healthcare and Philips SA Commercial are guilty of anti-competitive conduct.
• It alleges that they blocked independent contractors from competing with them in the servicing, repair and maintenance of diagnostic medical imaging equipment.
• The competition watchdog says functioning medical imaging equipment is directly linked to healthcare affordability.
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The Competition Commission has referred General Electric (GE) SA, GE Medical Systems SA, Siemens Healthcare and Philips SA Commercial to the Competition Tribunal.

The competition watchdog wants the companies prosecuted for allegedly engaging in anticompetitive behaviour by blocking independent contractors in the servicing, repair and maintenance of diagnostic medical imaging equipment.

The accused companies supply and service X-Ray, ultrasound, magnetic resonance imaging (MRI), computed tomography (CT) scanners and other medical imaging systems across SA. This equipment is essential for enabling healthcare practitioners to see inside the body, detect and monitor diseases, make accurate diagnoses and, in some cases, prevent disease.

“In our investigation, we found that the respondents denied or restricted independent clinical engineers’ access to, among other things, spare parts, diagnostic software, service keys, technical information and specialised training, which is required to compete effectively with the respondents in the diagnostic medical imaging servicing, repair and maintenance aftermarket,” Competition Commission spokesperson Siyabulela Makunga said on Thursday.

Since diagnostic medical imaging systems cost millions of rands 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 lifespan. Access to functioning diagnostic medical imaging equipment is also directly linked to the affordability and accessibility of healthcare, and to patients’ constitutional right of access to healthcare services, according to the commission.

The watchdog says diagnostic medical imaging equipment is particularly important in SA, where healthcare providers must respond to the overlapping burden of cancer, cardiovascular disease, diabetes and hypertension, as well as diseases such as HIV and tuberculosis. When this equipment is unavailable, diagnostic delays can postpone treatment and worsen patient outcomes, particularly in public and rural facilities.

The medical imaging referral comes just a day after the commission took the unprecedented step of asking the Competition Tribunal to reverse its approval of Premier Group’s R6 billion acquisition of RFG due to the companies allegedly concealing plans to close RFG’s historic fruit-canning facility in Tulbagh, Western Cape.

The tribunal acts as a court that decides on matters referred to it by the commission, which handles investigations into anti-competitive conduct.