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CCP's order against GCC Medical Centres upheld
CCP's order against GCC Medical Centres upheld

Business Recorder

time15 hours ago

  • Business
  • Business Recorder

CCP's order against GCC Medical Centres upheld

The Competition Appellate Tribunal (CAT) upheld the Competition Commission of Pakistan's (CCP) order against 20 medical centers and laboratories and their five associations for collusive price fixing, territorial allocation of customers, and other anti-competitive practices in mandatory pre-departure medical examinations for Pakistani workers bound for Gulf countries, according to a CCP statement on Friday. The tribunal upheld CCP's findings of competition law violations but reduced the penalties from Rs20 million per medical center and Rs10 million per GAMCA to Rs2 million per center and Rs1 million per GAMCA. CCP 2019 order: Appellate Tribunal grants partial relief to flour mills, upholds Rs35mn fine The case concerns a captive market of low-income Pakistani laborers — many securing manual jobs in Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait — who must undergo medical tests at GCC-approved centers before departure. The CCP's inquiry found that GAMCAs in five regions — Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan — allocated customers on a rotational basis. 'This eliminated competition on price and service quality. Workers were bound to a specific center, charged a uniform fee, and in some cases subjected to unnecessary repeat tests for additional payments.' The CCP initiated its inquiry on a complaint by the Pakistan Overseas Employment Promoters Association (POEPA). The CCP's investigation concluded that fee fixation, territorial division, and equal allocation of customers by GAMCAs violated Sections 4 of the Competition Act, 2010. Dr Kabir Sidhu, Chairman CCP, warned business associations against facilitating collusive practices, price fixing, or allocation of business quotas. He stressed that such platforms should be used to promote sectoral growth, enhancing competition, and to benefit consumers. Any anti-competitive conduct will be dealt with strictly under the competition law.

Pakistani tribunal upholds ruling against Gulf-bound worker medical centers for price fixing
Pakistani tribunal upholds ruling against Gulf-bound worker medical centers for price fixing

Arab News

time17 hours ago

  • Business
  • Arab News

Pakistani tribunal upholds ruling against Gulf-bound worker medical centers for price fixing

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 Saudi Arabia, 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) percenter and 1 million rupees ($3,500) per GAMCA. The CCP launched its inquiry after a complaint from the Pakistan Overseas Employment Promoters Association, which represents manpower exporters.

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