The Fair Trade Commission on Wednesday began investigating four medical equipment companies suspected of forming a price-fixing cartel for bone-fracture materials and other medical supplies, according to sources.
The companies under investigation include Stryker Japan K.K., the Japanese unit of U.S. medical equipment supplier Stryker Corp., the sources said. Stryker Japan is a major importer and seller of medical equipment and materials.
The other three companies are Zimmer K.K., Japan Medical Marketing Inc. and DePuy Japan Inc. All four are based in Tokyo.
The fair trade watchdog is also investigating the Japan Medical Devices Manufacturers Association, which it suspects was where the companies held their alleged cartel meetings, the sources said. The four companies are suspected of fixing prices for products used in orthopedic surgery for joining broken bones and artificial joints. The products are covered by medical insurance.
Demand for these products is increasing in line with the nation's aging population. The market for artificial joints amounts to about 60 billion yen a year, and that for materials used to join broken bones comes to about 30 billion yen, the sources said.
These products are imported mainly from the United States, and the four companies handle nearly 60 percent of the market, the sources said.