Fair Trade Regulator To Probe Italy's Esaote

New Delhi: The Competition Commission of India (CCI) has ordered a detailed investigation against Italy's Esaote after finding that the imaging diagnostic systems maker imposed unfair business practices.

Esaote is a leading maker of medical diagnostic systems, including a dedicated standing/tilting machine magnetic resonance imaging (MRI) machine.

The complaint was filed by a diagnostic centre based in the national capital against Esaote and Esaote Asia Pacific Diagnostic Pvt Ltd.

It was alleged that the two entities did not supply dedicated tilting MRI machines along with the PTC to the complainant as per the agreed terms of purchase order and also not providing after sales services as per the contract terms. 

To check whether prima facie there has been any violation of competition norms in the matter, the regulator considered 'dedicated tilting MRI machines in India' as the relevant market.

CCI said the conduct of the two entities "emanating from their dominant position in the relevant market, prima facie, amounts to imposition of unfair terms and conditions" on the complainant.

According to the regulator's order dated August 23, it is observed that even after receiving money for after sales services, the entities have not provided the same. 

Stating that there is "prima facie" evidence of abuse of dominant position which is violation of competition norms, the regulator has ordered a probe by its Director General (DG). 

DG is the investigation arm of the fair trade regulator. Esaote Asia Pacific Diagnostic is a subsidiary of Esaote.