China's price regulator on Wednesday announced that it has penalized US medical firm Medtronic based in Shanghai for unfair business practice.

A statement issued by the National Development and Reform Commission (NDRC) revealed that Medtronic reduced the price of its medical equipment in a bid to monopolize the business environment. The company supplies machinery for cardiovascular and diabetic illnesses.

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Xinhua reported that the company has been given an 118.5 million yuan ($17 million) penalty by the NDRC for the downpricing of their products to gain an upperhand over other suppliers. The fine represented 4 percent of the company's sales volume of devices last year.

NDRC claimed that Medtronic has already started initiating necessary corrections after it attempted to monopolize the business by directly dealing with distributors and setting the minimum price.

Medtronic has been under scrutiny since it started such practice back in 2014. The distributors are also noted to have contributed highly to the monopoly practice by the company.

Li Yanchun, the deputy-director of the NDRC pricing commission bureau, said that the commission was not looking to bar foreign investments but seek to promote consumer welfare and economic efficiency.

"The NDRC will enhance anti-monopoly enforcement actions in the future and upgrade pricing supervision," Li said.

Meanwhile, several other supply and manufacturing firms such as vehicle and drug manufacturers have been fined in the past for similar reasons. It is, however, the first time for a medical manufacturing company to come under scrutiny by China's anti-monopoly regulator.

Tagschina, Health, Medtronic, NDRC