CAPE TOWN – The Competition Commission and South Africa’s three largest private pathology groups, Pathcare, Lancet and Ampath, have agreed to a price reduction of Covid-19 Rapid Antigen tests to no more than R150 inclusive of VAT with immediate effect.
The price reduction will remain in effect for a period of two years.
The three laboratories have also undertaken to submit to a compliance report to the commission that will include financial statements every three months, to monitor prices charged for Covid-19 Rapid Antigen tests and any material changes in costs.
This is a second successive price reduction settlement the commission has concluded with the three private laboratory groups in less than 14 days.
The commission is currently pursuing an investigation against Dis-Chem. In its investigation, the commission found that one of the biggest retailers, Clicks, at present, does not appear to conduct rapid antigen testing, so no investigation against Clicks will be pursued at this stage.
The commission’s investigation follows a complaint lodged by the Department of Health (DOH) on December 14 against service providers delivering Covid-19 rapid antigen tests in South Africa to consumers.
It was during the PCR test investigation – concluded by consent orders with Pathcare, Lancet and Ampath, which reduced the price of PCR tests to R500 inclusive of VAT – that the commission became aware that similar concerns may exist in relation to Covid-19 rapid antigen tests.
DOH’s complaint alleged that private laboratories and retail distributers have historically charged around R350 for a rapid antigen test, reducing recently to around R250 in November and December 2021. The DOH alleges that the National Health Laboratory Services (NHLS) charges R150 and that a test kit costs R50 through UNICEF, and therefore prices above R150 could be excessive.
“This is yet another major victory for South Africans, particularly the vulnerable groups during the time of a devastating and resilient pandemic,” competition commissioner Tembinkosi Bonakele said.
“The reduction of Covid-19 rapid antigen test prices will help alleviate the plight of consumers and widen accessibility and affordability of Covid-19 rapid antigen testing, which is a critical part of the initiatives to avoid the escalation of the pandemic. The commission will continue with its investigation on supply and delivery of Covid-19 rapid antigen tests.
“We will not hesitate to apply for maximum administrative penalties against companies found guilty of exploiting consumers and customers.”
Cape Times