Appellate Tribunal Upholds Order Against Medical Centers

The Competition Appellate Tribunal (CAT) has validated the Competition Commission of Pakistan’s (CCP) ruling against 20 medical facilities and laboratories, along with their five associations. This decision addresses collusive price manipulation, territorial client distribution, and other anti-competitive behaviors related to mandatory pre-departure medical screenings for Pakistani laborers heading to Gulf countries, according to a released statement.

While the tribunal affirmed the CCP’s conclusions regarding breaches of competition regulations, it adjusted the financial penalties. The fines were lowered from Rs20 million to Rs2 million per medical center, and from Rs10 million to Rs1 million per GAMCA.

The issue at hand involves a restricted market of Pakistani laborers with modest incomes seeking primarily manual labor positions in nations such as Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait. These workers are obligated to undergo medical assessments at centers approved by the Gulf Cooperation Council prior to their departure.

The CCP’s investigation revealed that GAMCAs across five regions—Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan—were assigning clients via a rotation system.

“This practice stifled competition regarding price and service standards. Laborers were confined to specific centers, subjected to standardized fees, and, in some instances, compelled to undergo unnecessary repeated testing, incurring extra charges.”

The CCP’s investigation was prompted by a complaint lodged by the Pakistan Overseas Employment Promoters Association (POEPA). The CCP’s inquiry determined that the GAMCAs’ practice of setting fees, dividing territories, and uniformly distributing clients contravened Sections 4 of the Competition Act, 2010.

Dr. Kabir Sidhu, Chairman of the CCP, cautioned business associations against enabling collusive activities, price regulation, or business quota allocations. He emphasized that these platforms ought to be utilized to foster sectoral advancement, amplify competition, and provide advantages to consumers, warning that any anti-competitive actions would face rigorous penalties under competition legislation.