The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) order against 20 medical centers, laboratories, and their five associations for collusive price fixing. The violations involved territorial allocation of customers and other anti-competitive practices in mandatory pre-departure medical tests for Pakistani workers traveling to Gulf countries.
The Tribunal confirmed CCP’s findings but reduced penalties. Fines now stand at PKR 2 million per medical center and PKR 1 million per GAMCA association, down from the previous PKR 20 million and PKR 10 million, respectively.
This case affects low-income Pakistani laborers, many seeking jobs in Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait, who must undergo medical tests at GCC-approved centers before departure.
CCP’s inquiry revealed that GAMCAs in Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan allocated customers on a rotational basis. This practice eliminated competition, fixed prices, and forced workers to pay uniform fees. In some cases, unnecessary repeat tests were imposed for extra charges.
The investigation began following a complaint from the Pakistan Overseas Employment Promoters Association (POEPA). CCP concluded that fee fixation, territorial division, and customer allocation violated Section 4 of the Competition Act, 2010.
Dr. Kabir Sidhu, CCP Chairman, warned associations against collusive practices, price fixing, or allocating business quotas. He emphasized that associations should promote healthy competition, sectoral growth, and consumer benefit. Violators will face strict action under the competition law.