Recently, the National Development and Reform Commission has imposed administrative penalties on Medtronic (Shanghai) Management Co., Ltd. (hereinafter referred to as "Melton") and its counterparts to reach and implement a monopoly agreement on the price of medical devices in the fields of cardiovascular, reductive therapy and diabetes. A fine of 118.5 million yuan.
Medtronic sells medical device products in China through resale, and its counterparts include platform vendors and first-tier dealers. It is ascertained that, at least since 2014, Medtronic has reached a monopoly agreement with its counterparts through distribution agreements, email notifications, oral negotiations, etc., limiting the resale price, bid price and minimum sales price of the relevant medical device products. The price monopoly agreement was implemented through the formulation of product price lists, internal assessments, and cancellation of dealers' low-priced bid-winning products. Medtronic also adopted measures to vertically limit sales targets and sales areas and restrict the distribution of competitive brand products, further strengthening the implementation effect of the vertical price monopoly agreement.
At present, the market competition of high-value consumables and implantable medical equipment in China is not sufficient, and manufacturers mainly adopt resale sales methods. Fair competition among dealers is an important aspect to promote product competition and form reasonable market prices. Medtronic is an industry leader in cardiovascular, restorative therapy and diabetes-related medical devices. It strictly limits resale prices, eliminates and limits competition among dealers, limits competition among medical device brands, and maintains The high price of related medical device products hinders the normal functioning of the market price mechanism, increases the burden on patients, and harms the interests of consumers.
Medtronic and its counterparts reached and implemented a monopoly agreement to resell the price of the product involved in the third party and limit the minimum price of the product to be resold to a third party, in violation of Article 14 (1) of the Anti-Monopoly Law. The provisions of the two items, and which do not meet the exemption conditions and exemption conditions stipulated in Article 15 of the Anti-Monopoly Law, the National Development and Reform Commission ordered the law to immediately stop the implementation of price monopoly behavior, and accounted for 4% of the sales of the products involved in the year 2015. The fine was 1.1185 billion yuan.
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