ISLAMABAD – The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) order against 20 medical centers and five GAMCA associations involved in collusive pricing and customer allocation for mandatory pre-departure medical exams of Pakistani workers traveling to Gulf countries.
However, the Tribunal reduced the fines from Rs. 20 million per medical center and Rs. 10 million per GAMCA to Rs. 2 million and Rs. 1 million respectively.
The CCP’s investigation found that GAMCAs in Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan were dividing customers on a rotational basis, eliminating competition. Workers had no choice of centers, were charged fixed fees, and in some cases were subjected to unnecessary repeat medical tests for additional payments.
The inquiry was launched after a complaint from the Pakistan Overseas Employment Promoters Association (POEPA). The CCP determined that these practices violated Section 4 of the Competition Act, 2010, covering price-fixing, territorial division, and unfair allocation of customers.
CCP Chairman Dr. Kabir Sidhu cautioned that business associations must promote fair competition rather than facilitating collusion. He reiterated that the CCP will take strict action against anti-competitive practices to protect consumers and ensure sectoral growth.