Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Medtronic agrees to amend warranty terms that allegedly restricted consumer choice, (Mar 13, 2015)

By Greg Hammond, J.D.

Medtronic of Canada Ltd., Canada’s largest insulin pump supplier, has agreed to amend warranty terms concerning use of the company’s insulin pump with non-Medtronic equipment. The agreement has quelled the Canada Competition Bureau’s concerns that the warranty terms limited competition and restricted consumer choice.

Specifically, the Competition Bureau raised concerns, following an investigation, that the warranty terms for the company’s Medtronic Minimed Paradigm Veo insulin pump limited the ability of competitors to enter the market for insulin reservoir and infusion sets in Canada and limited diabetes patients’ choices. The warranty terms specified that the warranty would be voided if non-Medtronic products were used with the Minimed pump. However, the Competition Bureau believes that consumers could “achieve significant savings” by using other companies’ insulin reservoirs and infusion sets.

“When advised of the Bureau’s competition concerns, Medtronic worked cooperatively with the Bureau to resolve its concerns efficiently, by revising the warranty terms in question,” the Competition Bureau stated in an announcement. “According to the revised terms, the warranty will only be voided if damage results from the use of non-Medtronic products with the Veo.”

Companies: Medtronic of Canada Ltd.

News: Antitrust