The Competition and Tariff Commission has launched an investigation into Cimas Medical Aid Society over alleged restrictive practices that could limit competition in Zimbabwe’s health sector.
In a public notice issued under the Competition Act [Chapter 14:28], the Commission confirmed that it had commenced proceedings following concerns about Cimas’ conduct in its direct payment system.
“It is hereby notified… that the Competition and Tariff Commission has commenced an investigation into alleged restrictive practices by Cimas Medical Aid Society,” the notice reads.
The probe centres on allegations that Cimas declined to register Belnash Investments, trading as Harvey Brown Pharmacy, as a healthcare service provider under its direct payment system. According to the Commission, this may have forced members to pay cash for services.
“It is alleged that Cimas Medical Aid Society declined to register Belnash Investments t/a Harvey Brown Pharmacy as a healthcare service provider on its direct payment system,” the Commission said.
The notice further alleges that the move may have indirectly benefited Cimas’ own operations.
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“It is further alleged that Cimas Medical Aid Society provides healthcare services and operates a pharmacy within close proximity to Harvey Brown Pharmacy… and is alleged to be indirectly referring its members to its own pharmacy,” reads part of the statement.
The Commission warned that such practices could have wider implications for competition and consumer choice in the health sector.
“The Commission has preliminary concerns that the alleged practice may result in members’ choice of healthcare service providers being limited… and may also create barriers to entry and expansion,” the notice states.
However, the CTC emphasised that the investigation does not imply wrongdoing at this stage.
“It should be noted that the commencement of an investigation neither presupposes that the conduct being investigated is anti-competitive nor that Cimas Medical Aid Society has violated the provisions of the Act,” the Commission said.
The investigation will determine whether the alleged conduct “directly or indirectly restrict[s] competition,” in line with provisions of the Competition Act.
The Commission has since invited stakeholders and members of the public to submit written representations on how they may have been affected.
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