Siemens Medical after sales fined heavily in South Korea

In January this year, the Korea Fair Trade Commission determined that Siemens abused its market leading position and engaged in unfair business practices in the after-sales service and maintenance of CT and MR imaging equipment in Korean hospitals. Siemens plans to file an administrative lawsuit against the fine and continue to challenge the charges, according to a report released by the Korean biomedical Commission. After a two-day hearing held by the Korea Fair Trade Commission, the Korea Fair Trade Commission decided to implement a correction order and a fine surcharge to exclude small and medium-sized competitors in the CT and MR equipment maintenance service market.

According to the press release of Korea Fair Trade Commission, when the third-party repair agency works for the hospital, Siemens gives less favorable terms (price, function and time required to issue the service key), including delay in providing the service key required for equipment security management and maintenance. The Korea Fair Trade Commission reported that as of 2016, Siemens’ equipment maintenance market accounted for more than 90% of the market share, and the market share of four third-party repair organizations entering the market was less than 10%.

According to its statement, the Korea Fair Trade Commission also found that Siemens had sent exaggerated notices to hospitals, explained the risks of signing contracts with third-party repair agencies, and raised the possibility of copyright infringement. If the hospital does not sign a contract with a third-party maintenance organization, it will immediately issue the advanced service key free of charge on the day of the request, including its advanced automatic diagnosis function. If the hospital signs a contract with a third-party maintenance organization, the basic level service key is provided within a maximum of 25 days after the request is sent.

Post time: Dec-10-2021