EswatiniMed, a medical aid fund in Eswatini, has been accused of using its dominant position to frustrate rival healthcare providers through alleged anti-competitive practices. Complaints lodged by Paramed Laboratories and the Eswatini Private Doctors Association (EPDA) led to an investigation by the Eswatini Competition Commission. The commission has dismissed EswatiniMed's preliminary objection that it does not fall under the Competition Act No. 8 of 2007.
The Eswatini Competition Commission has ruled that EswatiniMed's medical aid activities are subject to competition law, despite its not-for-profit status. The commission reasoned that providing medical aid in exchange for contributions from members constitutes economic activity. Additionally, the fund's investment and control in Ezulwini Private Hospital (EPH), its participation in the healthcare market, and its open-enrolment arrangement were considered.
Paramed Laboratories alleged that EswatiniMed refused to issue practice numbers to certain healthcare providers and withdrew or revoked practice numbers previously allocated to some practitioners and facilities. On the other hand, the Eswatini Private Doctors Association (EPDA) accused EswatiniMed of employing a 'non-price predatory strategy' to frustrate competitors of healthcare providers associated with the fund.
The Eswatini Competition Commission's Secretariat issued an investigation notice on September 26, 2024, and requested information on October 24, 2024, as part of the investigation. EswatiniMed objected to the commission's jurisdiction on November 12, 2024, and sought an oral hearing to argue its preliminary objection. The investigation continued, with the Secretariat issuing its investigation report on February 10, 2025.
The investigation report concluded that EswatiniMed held a dominant position in the healthcare cover market and had engaged in anti-competitive trade practices. The report recommended an administrative penalty equivalent to 4.398 per cent of the fund's total turnover. However, this was not a fine imposed by the commission but rather part of the secretariat's investigation report subject to the subsequent determination of the matter.
The final investigation report, dated May 12, 2025, referred the matter to the commission's Board for determination. The Board heard arguments on the jurisdictional objection on August 8, 2025, and decided to determine the matter on the papers. On July 31, 2026, the Board delivered its ruling, dismissing EswatiniMed's preliminary points of law and referring the matter to the second stage, where the substantive allegations of anti-competitive conduct are to be determined.
EswatiniMed has approached the High Court, seeking to review and set aside the commission's ruling. The fund is challenging the decision that its activities fall within the scope of the Competition Act. The matter is scheduled to be heard on November 20 at 9:30 am. The ruling did not finally establish that EswatiniMed had engaged in anti-competitive conduct but allowed the substantive investigation to proceed to the next stage.
Key points
- EswatiniMed faces allegations of anti-competitive practices in the medical aid market.
- The Eswatini Competition Commission has ruled that EswatiniMed's activities are subject to competition law.
- EswatiniMed is challenging the commission's ruling in the High Court.
