Private medical practitioners' proposal potentially violates Competition Act: MyCC
PETALING JAYA: The Malaysia Competition Commission (MyCC) has warned that proposals by private medical practitioner associations in several states to implement new service charges could potentially breach the Competition Act 2010.
This comes in response to reports that several associations representing private medical practitioners are looking to introduce new service charges including prescription and registration fees, regulatory compliance charges, and facility usage fees some of which may have already been implemented or are under review.
MyCC chairman Tan Sri Datuk Seri Idrus Harun said such practices are considered serious violations and are commonly referred to as cartel activities, which are illegal regardless of whether the pricing agreement has been implemented or merely agreed upon.
'These additional charges reportedly include prescription fees, registration fees, regulatory compliance charges, and facility usage fees, which may already be in effect or currently under consideration.
'MyCC stated firmly that any collective decision by associations representing general practitioners (GPs) or private doctors to introduce such charges could be in violation of the Competition Act 2010 (Act 712),' he said in a statement.
Idrus added under Section 4(2)(a) of the Act, private doctors and GPs are regarded as 'enterprises,' and any agreement between enterprises including decisions by associations to fix prices or trading terms may constitute anti-competitive conduct.
'If any association or organisation collectively agrees to introduce new charges, it may be interpreted as a price-fixing arrangement. Even non-binding pricing recommendations could be deemed price-fixing under Section 4 of the Act,' he said.
The Sarawak Private Medical Practitioners' Society (SPMPS), the Private Medical Practitioners' Association of Selangor and Kuala Lumpur (PMPASKL), and the Penang Medical Practitioners' Society (PMPS) have been specifically cautioned about the possibility of violating Competition Act.
MyCC urged SPMPS to withdraw its advisory encouraging members to implement these new charges.
PMPASKL and PMPS have also been advised not to hold any meetings or make decisions that could result in the uniform imposition of new charges, as this could be considered a breach of the law.
'Under the Competition Act 2010, any enterprise found guilty of violating the Act may face financial penalties of up to 10% of its global turnover during the period of infringement.
'MyCC will not hesitate to initiate investigations and take strict enforcement actions against any parties involved in anti-competitive conduct,' said Idris.
He further stressed MyCC is closely monitoring the situation and called on all stakeholders in the healthcare sector to fully comply with competition laws.
'MyCC reaffirms its commitment to promoting a competitive, healthy, and transparent marketplace for the benefit of consumers and the integrity of Malaysia's economy,' he added.
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