Three of South Africa’s leading private pathology laboratories, namely: Drs Dietrich, Voigt, Mia & Partners and Dr WJH Vermaak Incorporated (“PathCare”); Drs Mauff AC & Partners t/a Lancet Laboratories (“Lancet”); and Drs Du Buisson, Kramer, Swart, Bouwer Incorporated t/a Ampath (“Ampath”) have agreed to immediately reduce their prices for COVID-19 rapid antigen tests to a maximum of R150 (including VAT) for a two year period.
 
This forms part of separate consent agreements between the Competition Commission (“the Commission”) and PathCare, Lancet and Ampath, respectively. The three consent agreements have today been confirmed as orders by the Tribunal.
 
The three laboratories also recently concluded separate consent agreements wherein they agreed to reduce their prices for COVID-19 PCR tests to no more than R500 (including VAT). These were also confirmed as orders by the Tribunal and effective immediately.  
 
Terms of the consent agreements
 
In terms of its consent agreement, PathCare agrees to, among others:

 
Lancet agrees, in its consent agreement, to:

 
Ampath, in terms of its consent agreement, agrees to:

 
The R150 (VAT incl.) price is a maximum price cap and the laboratories may charge or negotiate a lower price. For as long as they provide COVID-19 rapid antigen tests, they also undertake to disclose the name of the test kit used to all consumers of these tests, so that they can identify the type of antigen test provided. This information should also be reflected on any test results.  
 
Background
 
On 13 December 2021, during its investigation into the pricing of COVID-19 PCR tests, the Commission received a complaint from a Health Department official relating to COVID-19 rapid antigen tests. An investigation into rapid antigen tests shows that, prima facie, pathology groups have contravened section 8(1)(a) of the Competition Act (“the Act”) i.e. excessive pricing.
 
The three laboratories indicated their willingness to immediately reduce the price of rapid antigen tests to no more than R150 (VAT inclusive). Consequently, the Commission concluded the consent agreements with them, which have today been confirmed as orders by the Tribunal.
 
The three laboratories do not admit that they charged excessive or exorbitant prices in contravention of section 8(1)(a) of the Act, read together with Regulation 4 of the Consumer Protection Regulations. Nothing in the three consent agreements amounts to or should be construed as an admission of any facts, conduct, liability or wrongdoing by PathCare, Lancet or Ampath.