BOMAID investigated for anti-competitive practices

High Court says the Competition Act applies to BOMAID CCA will resume probing BOMAID for anti-competition behaviour A High Court ruling has paved the way for the Competition and Consumer Authority (CCA) to investigate Botswana Medical Aid Society (BOMAID) for anti-competitive conduct. In a press statement issued recently, CCA says the court ruling determined that the medical aid company is an enterprise subject to regulation by the Competition Act, thus enabling CCA to resume its investigations of BOMAID for possible anti-competitive practices. [ihc-hide-content ihc_mb_type="show" ihc_mb_who="1,2,3,4" ihc_mb_template="3" ] In its 2020/21 annual report, CCA revealed that Ekuseleni Clinical Laboratory had hauled BOMAID before the Authority with allegations of abuse of its market dominance in the form of discriminatory pricing through introduction of a tariff system and discriminatory price increments that BOMAID applies to Ekuseleni. The third allegation pointed to an exclusive arrangement between BOMAID and Diagnofirm concerning BOMAID Managed Care Benefit Scheme. In yet another case, BOMAID – which is one of Botswana’s top medical aid providers - was fingered in a Botswana Dental Association (BODEA) complaint to CCA with allegations of possible abuse of dominance in the form of refusal of access to an essential facility. This was in addition to an allegation of possible horizontal agreement through price fixing between BOMAID, Pula Medical Aid (PULA) and Botswana Public Officers Medical Aid Scheme (BPOMAS). BOMAID tried to duck out of the allegations by arguing that it was a non- profit making society upon which the Competition Act does not apply and went on to apply for an exemption from the High Court on 21 January 2021. “The High Court declared that BOMAID is a body that carries out business that is for purposes of gain or reward and that its goal is one of a commercial and socially-economic nature,” says the statement from CCA. “The reasons for this declaration were that BOMAID regulates its own tariffs, (but) the scheme is not compulsory. It provides several types of schemes in accordance with subscriptions, and a member’s ability to access healthcare benefits is determined by the scheme they subscribe to. “Finally, a member’s failure to subscribe may result in their exclusion from such benefit.” According to the statement, even though CCA opposed this exemption application from the onset, it agreed to halt investigating BOMAID pending the outcome of the High Court case. “The CCA will, for all intents and purposes, be resuming its investigations of BOMAID’s alleged anti-competitive practices,” says the statement. “The judgment further means the Authority can in future investigate any medical aid society that is accused of infringing the Competition Act.” [/ihc-hide-content]

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BOMAID investigated for anti-competitive practices

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