Tribunal Upholds CCP Ruling in GCC Medical Centers Case
ISLAMABAD: Pakistan’s competition tribunal has upheld findings of anti-competitive conduct by 20 GCC-approved medical centers but reduced their fines.
Penalties Cut but Violations Confirmed
On 15 August, the Competition Appellate Tribunal (CAT) confirmed the Competition Commission of Pakistan’s (CCP) ruling that 20 medical centers, laboratories, and five associations engaged in collusive price fixing and territorial allocation for mandatory pre-departure medical examinations of Pakistani workers bound for Gulf states. The Tribunal reduced fines from PKR 20 million to PKR 2 million per center and from PKR 10 million to PKR 1 million per association.
Exploitation of a Captive Market
The case involves a captive market of low-income laborers seeking jobs in Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait. The CCP found that the Gulf Approved Medical Centres Association (GAMCA) in five major cities — Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan — allocated customers on a rotation basis. This practice eliminated competition, kept prices uniform, and sometimes forced workers to undergo unnecessary repeat tests for extra charges.GCC Medical Centers Case
Inquiry Triggered by Industry Complaint
The CCP inquiry began after a complaint from the Pakistan Overseas Employment Promoters Association (POEPA). Investigators concluded that price fixing, customer allocation, and market division by GAMCA violated Section 4 of the Competition Act, 2010.
CCP Warns Against Collusion
CCP Chairman Dr. Kabir Sidhu warned that business associations must not engage in price fixing or quota allocation, urging them instead to foster sectoral growth and consumer benefit. He reiterated that anti-competitive conduct will face strict enforcement under competition law.
