The Competition Commission has referred a case against Adcock Ingram Critical Care (AICC) to the Competition Tribunal over allegations that the company charged excessive prices for critical dialysis products used in the treatment of kidney failure.According to the Commission, the alleged conduct occurred between July 2019 and June 2024 and may constitute a violation of Section 8(1)(a) of the Competition Act, which prohibits dominant firms from charging excessive prices.
AICC manufactures and distributes a range of critical care products, including intravenous fluids and renal dialysis systems. The case focuses on products used in peritoneal dialysis and continuous renal replacement therapy (CRRT), both of which are essential treatments for patients suffering from kidney failure. While peritoneal dialysis can be performed at home, CRRT is mainly administered in intensive care units.
The Commission launched its investigation following a complaint and found that AICC holds a dominant position in South Africa’s market for renal replacement therapy products. Investigators concluded that the company’s prices for dialysis-related products significantly exceeded the economic costs associated with producing and supplying them, indicating a potential abuse of market dominance.South Africa faces a growing burden of chronic kidney disease, with estimates suggesting that between 6% and 17% of the population may be affected.
The prevalence of diabetes, hypertension, and HIV continues to increase the demand for renal treatment services.The Commission argues that inflated pricing of dialysis products has contributed to rising treatment costs, placing additional pressure on government healthcare budgets, medical aid schemes, healthcare facilities, and patients who rely on life-saving treatment.Competition Commissioner Doris Tshepe said the pricing of essential healthcare products directly affects healthcare affordability and access to treatment.
She added that the Commission remains committed to preventing companies from using market power to charge excessive prices for products that are critical to patient care.The Commission is seeking an order from the Competition Tribunal declaring that AICC contravened the Competition Act and imposing an administrative penalty of up to 10% of the company’s annual turnover if found guilty.The matter is expected to proceed before the Tribunal, where evidence relating to the pricing practices and market conduct of AICC will be examined.
Email: Malcolm@onenews.co.za
