Hearing Implant Merger Sparks Competition Concern
The Competition and Markets Authority (CMA) warns a proposed merger between hearing implant giants Cochlear Limited and Oticon Medical could harm patients and hit the NHS wallet hard.
Big Merger Risks Leaving Patients in the Lurch
The CMA’s provisional investigation finds the deal could slam the brakes on competition for key hearing loss devices, especially bone conductive solution (BCS) implants. These clever gadgets bypass damaged ear parts by turning sound into vibrations sent straight to the inner ear.
Currently, Cochlear and Oticon Medical are the only UK suppliers of passive BCS implants. This merger would leave just one provider. On top of that, Cochlear dominates the ‘active’ BCS market, while Oticon Medical is working on a rival product. Combined, they would control over 90% of the UK BCS implant market.
Less Choice, Innovation, and Higher Costs Loom
The CMA fears this dominance will mean patients face fewer choices, slower innovation, and possibly lower-quality options. The NHS, the biggest buyer of these implants, could end up paying more. Although other hearing implant sectors seem safe for now, BCS products are facing major shakeups.
CMA Considers Blocking Sale or Forcing Divestments
The independent inquiry, chaired by Kip Meek, took into account feedback from clinics and market players worried about the merger. Meek said:
“We’re concerned that this deal could seriously reduce competition with patients having fewer suppliers to choose from, potentially losing out from less innovation and lower product quality going forward, as well as in the long term potentially costing the NHS and taxpayers more money.”
“Any remedies offered by the parties that could effectively address our competition concerns and any other adverse effects of the proposed deal will be considered.”
The CMA is now looking at possible fixes—like blocking Cochlear’s takeover of Oticon Medical or demanding the sale of part of the business to protect competition.
The public can submit their views on how to fix these issues by 4 May, with feedback on the CMA’s provisional findings accepted until 11 May. The final verdict is expected by 5 June 2023.
