CCI imposes Rs. 9.33 lac penalty on Esaote S.p.A & Esaote Asia Pacific Diagnostic
CCI imposes Rs. 9.33 lac penalty on Esaote S.p.A & Esaote Asia Pacific Diagnostic

CCI has imposed Rs. 9.33 lac penalty on Esaote S.p.A and Esaote Asia Pacific Diagnostic for abusing dominant position in supplying dedicated standing/ tilting MRI machines.

House of Diagnostics LLP (informant) alleged that Esaote charged huge sum of money for supplying spare parts and refused to perform its contractual obligations.

CCI held that:

  • Esaote was only manufacturer in Relevant market, thereby dominant;
  • It abused its dominant position by refusing to provide Head Coils with the machines to Informant.
  • It also demanded arbitrary charges in derogation of its contractual obligations for comprehensive maintenance contract in G-Scan MRI machines. 

Dissent note by Chairman- Relevant market cannot be narrowed to standing/ tilting MRI machines alone as any market delineation would have to necessarily include all MRI machines irrespective of some additional features or functionalities. In absence of market power, the question of abuse of dominance did not arise.

For more: https://www.cci.gov.in/sites/default/files/case%20no.%2009%20of%202016%20%28Majority%20Order%20P.%2001%20to%2033%29%20%2C%20Dissent%20Note%20by%20Chairperson%20%28P.34%20to%2039%29.pdf