The Competition Appellate Tribunal (CAT) has affirmed the Competition Commission of Pakistan’s (CCP) decision against 20 medical facilities and laboratories, along with their five organizations, for colluding on prices, dividing customers by territory, and engaging in other anti-competitive behaviors. These practices specifically targeted mandatory pre-departure health evaluations for Pakistani laborers traveling to Gulf nations.

The Tribunal supported the CCP”s conclusion that competition regulations were violated but lowered the fines from PKR 20 million per medical establishment and PKR 10 million per Gulf Approved Medical Centres Administrative Offices (GAMCAs) to PKR 2 million per facility and PKR 1 million per GAMCA.

The issue revolves around vulnerable low-wage Pakistani employees, many seeking manual positions in Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait, who are required to undergo medical assessments at GCC-authorized facilities before leaving.

The CCP”s investigation revealed that GAMCAs in five areas-Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan-assigned clients on a rotating system. This eliminated price and service quality competition. Employees were assigned to a designated facility, billed a fixed fee, and occasionally forced to undergo unnecessary repeat examinations for extra charges.

The CCP started its inquiry after receiving a grievance from the Pakistan Overseas Employment Promoters Association (POEPA). The CCP”s examination determined that the setting of fees, territorial allocation, and even distribution of clients by GAMCAs breached Sections 4 of the Competition Act, 2010.

CCP Chairman Dr. Kabir Sidhu cautioned trade groups against aiding collusive actions, price manipulation, or business quota allocations. He emphasized that such groups should focus on fostering industry expansion, increasing competition, and benefiting customers. He declared that any anti-competitive conduct would be dealt with severely under competition regulations.