Fair Trade Regulator Rules Out Charges Against Wipro GE

The Competition Commission of India (CCI) has rejected allegations that Wipro GE Healthcare had abused its dominant market position with respect to sale and repair of medical equipment.

Wipro GE Healthcare is a joint venture between Wipro Ltd and US-based General Electric Company.

The entity is engaged in the manufacturing and sale of ultrasound, CT scanners systems, among others.

A complaint filed by a medical practitioner had alleged that the CT scan equipment purchased from Wipro GE was of substandard quality and broke down several times.

Further, it was alleged that the repair services for the equipment was deficient and prices charged for the spare parts used as replacement in repairing the said equipment were extremely high and changed arbitrarily by the company.

Besides, the watchdog has also dismissed the complaint against GE Health Care which was alleged along with Wipro GE of imposing several unfair terms for purchase of the medical equipment.

In an order dated June 23, the regulator said that "no case of contravention of the provisions of the (Competition) Act is made out against the opposite parties and the information is ordered to be closed".

According to the CCI, the case pertaining to deficiency in services provided by Wipro GE to an individual consumer and as such did not highlight "any competition issue which requires intervention of the Commission at this stage".

"Accordingly, an assessment of the alleged abusive conduct of the opposite party No 1 (Wipro GE Health Care) under the (Competition) Act is not required."