Competition Commission v Ampath (COVCO140Dec21) [2021] ZACT 108 (12 December 2021)

Competition Commission v Ampath (COVCO140Dec21) [2021] ZACT 108 (12 December 2021)

The Tribunal confirmed the consent agreements as orders on an urgent basis, finding that the negotiated price cap of R500 inclusive of VAT for COVID-19 PCR tests was justified by reductions in supplier costs and significant profitability among pathology laboratories. The orders were necessary to ensure immediate relief to consumers during the ongoing COVID-19 pandemic and rising Omicron infections. The Tribunal accepted the parties' non-admission of liability, noting that the consent agreements do not constitute an admission of contravention but serve the public interest by capping prices and requiring ongoing compliance reporting.

Citation
[2021] ZACT 108
Parties
Applicant: Competition Commission; Respondent: Drs Du Buisson, Kramer, Swart, Bouwer Incorporated t/a Ampath
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 December 2021
Case Number
COVCO140Dec21
Procedural Posture
Urgent Application / Consent Order Confirmation
Outcome
Consent agreements confirmed as orders of the Tribunal; price cap imposed for two years.
Legal Topics
Excessive Pricing, Covid 19 Pcr Tests, Consent Order, Price Cap, Section 8 1 a, Consumer Protection Regulations
Competition Law Commercial and Corporate Excessive Pricing Covid 19 Pcr Tests Consent Order Price Cap Section 8 1 a Consumer Protection Regulations

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Parties

Competition Commission

Applicant

Drs Du Buisson, Kramer, Swart, Bouwer Incorporated t/a Ampath

Respondent

Procedural Posture

Urgent Application / Consent Order Confirmation

Legal Issues

  1. 1 Whether Ampath and Lancet charged excessive prices for COVID-19 PCR tests in contravention of section 8(1)(a) of the Competition Act.
  2. 2 Whether the consent agreements to reduce PCR test prices to R500 inclusive of VAT are appropriate and enforceable.
  3. 3 Whether the price reductions should be confirmed as orders of the Tribunal on an urgent basis.

Ratio Decidendi

The Tribunal confirmed the consent agreements as orders on an urgent basis, finding that the negotiated price cap of R500 inclusive of VAT for COVID-19 PCR tests was justified by reductions in supplier costs and significant profitability among pathology laboratories. The orders were necessary to ensure immediate relief to consumers during the ongoing COVID-19 pandemic and rising Omicron infections. The Tribunal accepted the parties' non-admission of liability, noting that the consent agreements do not constitute an admission of contravention but serve the public interest by capping prices and requiring ongoing compliance reporting.

Court Disposition

Consent agreements confirmed as orders of the Tribunal; price cap imposed for two years.

Orders

  • Ampath and Lancet are ordered to reduce the price of COVID-19 PCR tests to no more than R500 inclusive of VAT for two years.
  • Both laboratories must submit compliance reports to the Commission every three months detailing prices charged and material changes in costs.