Hong Kong antitrust watchdog accuses medical gas supply giant of using monopoly position in market to exclude competition
- Competition Commission says Linde HKO unlawfully leveraged market power in the production and supply of medical gases
- Linde was also said to have engaged in ‘predatory behaviour’ towards other companies, such as MGI (Far East)
Hong Kong’s antitrust watchdog on Monday brought its first court case on abuse of market power against a medical gas supply giant for allegedly using its de facto monopoly position to exclude competition.
The Competition Commission said Linde HKO, of the Germany-based Linde Group, and its parent company Linde GmbH unlawfully leveraged substantial market power in the production and supply of medical oxygen, medical nitrous oxide and medical air to maintain a stranglehold over the downstream maintenance market.
Linde was also said to have engaged in “predatory behaviour” towards other companies, in particular its closest competitor in the downstream market, MGI (Far East), such that the latter could not compete or perform its service contracts, and ultimately lost business.
MGI had been a customer of Linde’s since 1992, satisfied with its orders of medical gases and storage cylinders until October 12, 2015 when the supplier changed its trading terms.
Examples of subsequent abusive conduct given in the High Court filing included unexplained denial of supply of medical gases necessary for MGI to perform annual testing and regular maintenance of the medical gas pipeline system (MGPS), even when MGI requested cylinders for Kwong Wah Hospital on the basis it was “critical and would influence the life safety”, on September 6, 2016.