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Competition Commission welcomes ConCourt judgement on proposed health sector merger

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The Competition Commission has welcomed a landmark judgement by the ConCourt, upholding the commission’s appeal against the CAC for interfering in the prohibition of a health sector merger.

The Competition Commission issued a statement on Sunday, 17 October 2021, welcoming a landmark judgement by the Constitutional Court, upholding the commission’s appeal against a decision by the Competition Appeal Court (CAC). This is in regards to setting aside the matter concerning a merger between Mediclinic Southern Africa and Matlosana Medical Health Services (MMHS).

The commission and the tribunal had concluded that putting together of some Mediclinic hospitals would likely lead to a substantial decrease in competition in the relevant market, as the tariffs of the hospitals would increase significantly as a result of the merger in respect of both insured and uninsured patients. They also noted that the proposed merger would drastically affect uninsured patients by limiting them from switching to cheaper hospitals such as MMHS. The commission believes the ConCourt judgement answered the question on whether the CAC was right for its interfering.

See the post below.

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