GAMCA Violates Competition, Exploits Gulf-Bound Pakistanis

The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) order against 20 medical centres and laboratories.

Along with their five associations, GAMCAs were found guilty for collusive price fixing and territorial allocation of customers.

Pakistani workers bound for Gulf countries needed mandatory pre-departure medical examinations from designated medical centres and labs.

The Tribunal upheld CCP’s findings of competition law violations. However, it reduced the penalties. It decreased penalty from PKR 20 million per medical centre to two million rupees. Similarly, it reduced penalty of PKR 10 million for Gulf Approved Medical Centres Administrative Offices (GAMCAs) penalty to PKR 1 million per GAMCA.

Violations:

Low-income Pakistani labourers, many securing manual jobs in Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait, must undergo medical tests at GCC-approved centres before departure.

The CCP’s inquiry found that GAMCAs allocated customers on a rotational basis in five regions. The regions include Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan. This eliminated competition on price and service quality. They bound workers to a specific centre, charging 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 Section 4 of the Competition Act, 2010.

Dr. Kabir Sidhu, Chairman of 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. They should enhance competition, and benefit consumers. “The CCP will deal anti-competitive conduct with strictly under the competition law.”