https://arab.news/6w4dp
- Competition appeals tribunal reduces fines but upholds ruling against price fixing by medical centers
- Pakistani workers going to Gulf must use approved clinics, where CCP found collusion, overcharging
ISLAMABAD: Pakistan’s competition appeals tribunal has upheld a ruling against 20 medical centers and laboratories that colluded to fix prices and allocate customers for mandatory pre-departure health tests of workers bound for Gulf countries, the competition regulator said on Friday.
The case involves a captive market of low-income Pakistani laborers headed mainly to ֱ, Qatar, Oman, Bahrain and Kuwait.
Under the rules, these workers must undergo tests at centers approved by the Gulf Approved Medical Centers Association (GAMCA), a network of clinics authorized by Gulf states to carry out the mandatory checks.
The regulator found the centers and their five regional associations divided customers on a rotational basis, eliminating competition on price and service quality, and in some cases charging for unnecessary repeat tests.
“The CCP’s investigation concluded that fee fixation, territorial division and equal allocation of customers by GAMCAs violated the Competition Act, 2010,” the Competition Commission of Pakistan (CCP) said in a statement.
“Any anti-competitive conduct will be dealt with strictly under the competition law,” it quoted its chairman, Dr. Kabir Sidhu, as saying.
The competition appeals tribunal upheld the findings but reduced the penalties from 20 million rupees ($70,000) per medical center and 10 million rupees ($35,000) per GAMCA to 2 million rupees ($7,000) per center and 1 million rupees ($3,500) per GAMCA.
The CCP launched its inquiry after a 2012 complaint from the Pakistan Overseas Employment Promoters Association, which represents manpower exporters.
It ruled against the clinics later that year, though the verdict was not implemented because the medical centers and laboratories obtained stay orders.