Latest news with #CompetitionAct2010
The Star
26-05-2025
- Health
- The Star
Private clinics get final say on fees
Stakeholders: Advisories meant to help GPs find ways to cover rising operational costs PETALING JAYA: Although some doctors' groups have proposed new service charges in retaliation against the newly enforced rule for displaying drug prices, private clinics can exercise their own autonomy in deciding their fees, says a private practitioners' group. The Federation of Private Medical Practitioners' Associations Malaysia insists that the proposals made by some of its state affiliates were made in 'good faith', adding that they were meant to help GPs cover the rising operational costs. Its president Dr Shanmuganathan Ganeson said while advisories were issued, it is not compulsory for clinics to fix prices accordingly, and clinics are able to exercise full autonomy in setting their charges. He was responding to a Malaysia Competition Commission (MyCC) statement last Friday where the commission had cautioned private medical practitioners against introducing new service-related charges, as it could infringe the Competition Act 2010. Dr Shanmuganathan revealed that medical practitioners had a dialogue with MyCC in December last year, during which a proposal for a RM20 regulatory compliance charge was considered. Consequently, he said these state affiliates were mindful of not imposing fixed charges and opted to provide indicative ranges, but the move has since backfired. 'While the meeting with MyCC was constructive, the Competition Act now flags the decision to provide an indicative range as potentially problematic. 'At this point, we are compelled to ask: what are the government's real intentions toward private GP clinics? 'From where we stand, it appears the system is simply tolerating us until something more centralised and controlled is in place. 'Our profession is for patient care and the health of the rakyat,' Dr Shanmuganathan said when contacted. 'We want a sustainable, transparent GP ecosystem that patients can continue to trust. 'If there is no future for general practitioners in Malaysia's health system, we ask for honesty. 'Let us begin to responsibly wind down our practices so that our staff, medical suppliers, and patients are not blindsided when community-based private primary care collapses,' he added. Dr Shanmuganathan said what was more disturbing was the regulatory imbalance where independent GP clinics are being scrutinised while corporate third-party administrators (TPAs) continue to suppress fees without equivalent oversight from the authorities. GP Dr Roland Victor said it is not feasible for the price of medicines prescribed by clinics to be regulated as operating expenses may vary based on location. 'A shophouse in Mont Kiara will cost much more than (one) in Hulu Selangor. 'However, GP consultation fees have remained capped at RM35 for the past 30 years. 'Hence, GPs have no choice but to mark up medicine prices to manage their overhead costs such as rental, staffing and other facilities to sustain their clinics,' he said. Dr Victor said he was not against the display of drug prices but GPs need to see consultation fees fairly revised for sustainability. He agreed that TPAs contribute to the escalation of medical costs but they are not being monitored enough, nor are they regulated by the same laws imposed on GPs and clinics. 'These companies often dictate terms and conditions to GPs on how medical charges should be imposed,' Dr Victor said.
Express Tribune
24-05-2025
- Business
- Express Tribune
CCP warns of Rs75m fine on illegal agreements
The Competition Commission of Pakistan (CCP) has issued a cautionary notice to undertakings that enter into prohibited agreements without seeking prior exemption, warning of financial penalties of up to Rs75 million, or 10% of annual turnover. The CCP has observed that certain agreements between undertakings and their wholesalers, dealers, agents and retailers may constitute a refusal to deal with non-dealers and often include restrictive provisions that could violate Section 4(2) of the Competition Act 2010, according to a press release issued by the CCP on Saturday. These potentially anti-competitive clauses may include resale price maintenance, market division, non-competition obligations or other conditions that restrict competition. Such vertical agreements — those between parties operating at different levels of supply chain – are void ab initio as they prevent, restrict or distort competition, unless specifically exempted by the CCP under Section 5 read with Section 9 of the Act, it said. Exemption applications submitted to the CCP are evaluated using the criteria in Section 9 of the Act. Agreements that promote production or distribution, encourage technical or economic progress or result in efficiency gains that outweigh any adverse impact on competition may be granted exemption, the CCP announced. The commission has strongly advised all undertakings to apply for exemption under Section 5 before entering into any such agreements to avoid potential sanctions. Under the Competition Act 2010, the CCP is empowered to ensure free competition across all sectors of the economy, aiming to enhance economic efficiency and protect consumers from anti-competitive practices such as abuse of dominance, cartelisation, deceptive marketing and mergers that may reduce market competition.
Express Tribune
24-05-2025
- Business
- Express Tribune
Tribunal overturns ruling in sugar case
Listen to article The Competition Appellate Tribunal, while deciding the appeals filed by the Pakistan Sugar Mills Association (PSMA) and its member mills, has sent back the case involving a penalty of Rs44 billion to the Competition Commission of Pakistan (CCP) for a fresh hearing. In its short order, the tribunal directed that the matter be reheard by either the chairperson or any other member of the commission who was not a signatory to the earlier conflicting opinions and a final decision should be made preferably within 90 days. The CCP's original 2021 order was issued by a four-member bench that was evenly split. Two members, including the then chairperson Rahat Kaunain Hassan and member Mujatba Lodhi, supported the imposition of the penalty while the remaining two including Bushra Naz Malik and Shaista Bano wrote a dissenting note. To break the deadlock, the then chairperson exercised the "casting vote" under sub-section 5 of Section 24 of the Competition Act 2010 through a note dated August 13, 2021, effectively converting the stalemate into a majority ruling that upheld the penalty. The legality of the casting vote became the central issue in the appeals filed by millers. The tribunal has ruled that the chairperson has no authority to exercise a casting vote in quasi-judicial proceedings under the Competition Act. As a result, the chairperson's opinion based on the casting vote has been set aside. After fresh hearing, the decision of the chairperson or the assigned member will settle the matter and determine the violation of competition law by the PSMA and its member mills. The appellate tribunal has recently become fully functional following the federal government's appointment of a new chairman, allowing the tribunal to resume hearing on several long-pending appeals. In the sugar cartel case, the CCP had imposed penalties of Rs44 billion on the millers' association and 81 of its members. PSMA and its members had allegedly formed a cartel to manipulate prices and had collectively decided to export the sweetener. The CCP passed the order for violating Section 4 of the Competition Act.
The Star
24-05-2025
- Business
- The Star
GPs warned against imposing new charges
PETALING JAYA: Private medical practitioners have been warned not to introduce new service-related charges as it could infringe the Competition Act 2010, says the Malaysia Competition Commission (MyCC). Its chairman Tan Sri Idrus Harun said the commission expressed grave concern over recent reports from multiple media outlets regarding proposals by associations of private medical practitioners in Sarawak, Penang, Selangor and Kuala Lumpur to impose the fees. 'These include additional fees such as prescription charges, registration fees, regulatory compliance charges and facility fees, either already implemented or currently under consideration. 'MyCC firmly maintains that any decision made by associations, including those representing private general practitioners (GPs) to introduce these additional fees, may infringe the Competition Act 2010 (Act 712),' he said in a statement yesterday. Under Section 4(2)(a) of the Act, GPs are considered 'enterprises' and any agreement between enterprises, including the decision by association to set prices or trading conditions may be deemed anti-competitive. 'Such conduct is categorised as a serious infringement. 'It constitutes a breach of the Act regardless of whether it is implemented or simply agreed upon,' Idrus added. He said when associations collectively agree to introduce new charges, such action may be interpreted as an agreement to fix trading conditions. 'Similarly, any recommendation of a price range, regardless of whether it is binding or not, may be regarded as the conduct of price fixing under Section 4 of the Act,' he said. Idrus said the MyCC urged the Society of Private Medical Practitioners Sarawak to retract its advisory issued to members encouraging the implementation of specific new fees. 'MyCC also calls upon the Private Medical Practitioners' Association of Selangor and Kuala Lumpur and the Penang Medical Practitioners Society to refrain from convening meetings or taking any steps that may result in collective decisions to fix fees or introduce uniform charges,' he said, adding that these actions may be considered infringements of the law. Should there be such breaches of the Act, the MyCC may impose a financial penalty of up to 10% of its worldwide turnover for the duration of the infringement.
The Sun
23-05-2025
- Business
- The Sun
Private medical practitioners' proposal potentially violates Competition Act: MyCC
PETALING JAYA: The Malaysia Competition Commission (MyCC) has warned that proposals by private medical practitioner associations in several states to implement new service charges could potentially breach the Competition Act 2010. This comes in response to reports that several associations representing private medical practitioners are looking to introduce new service charges including prescription and registration fees, regulatory compliance charges, and facility usage fees some of which may have already been implemented or are under review. MyCC chairman Tan Sri Datuk Seri Idrus Harun said such practices are considered serious violations and are commonly referred to as cartel activities, which are illegal regardless of whether the pricing agreement has been implemented or merely agreed upon. 'These additional charges reportedly include prescription fees, registration fees, regulatory compliance charges, and facility usage fees, which may already be in effect or currently under consideration. 'MyCC stated firmly that any collective decision by associations representing general practitioners (GPs) or private doctors to introduce such charges could be in violation of the Competition Act 2010 (Act 712),' he said in a statement. Idrus added under Section 4(2)(a) of the Act, private doctors and GPs are regarded as 'enterprises,' and any agreement between enterprises including decisions by associations to fix prices or trading terms may constitute anti-competitive conduct. 'If any association or organisation collectively agrees to introduce new charges, it may be interpreted as a price-fixing arrangement. Even non-binding pricing recommendations could be deemed price-fixing under Section 4 of the Act,' he said. The Sarawak Private Medical Practitioners' Society (SPMPS), the Private Medical Practitioners' Association of Selangor and Kuala Lumpur (PMPASKL), and the Penang Medical Practitioners' Society (PMPS) have been specifically cautioned about the possibility of violating Competition Act. MyCC urged SPMPS to withdraw its advisory encouraging members to implement these new charges. PMPASKL and PMPS have also been advised not to hold any meetings or make decisions that could result in the uniform imposition of new charges, as this could be considered a breach of the law. 'Under the Competition Act 2010, any enterprise found guilty of violating the Act may face financial penalties of up to 10% of its global turnover during the period of infringement. 'MyCC will not hesitate to initiate investigations and take strict enforcement actions against any parties involved in anti-competitive conduct,' said Idris. He further stressed MyCC is closely monitoring the situation and called on all stakeholders in the healthcare sector to fully comply with competition laws. 'MyCC reaffirms its commitment to promoting a competitive, healthy, and transparent marketplace for the benefit of consumers and the integrity of Malaysia's economy,' he added.
