Thursday, July 23, 2020

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The Indonesian Competition Commission (ICC) has completed a research in the law enforcement proceedings with regard to the alleged tying-in rapid test product sales agreement for Covid-19 diagnoses in various hospitals. Pertaining to the alleged violations of Article 15 paragraph (2) in the said research, ICC has concluded that most of the hospitals serving as the object of the study have changed their behaviours by making adjustments to the marketing forms of the rapid test products.

In its previous statement, ICC explains that it has been conducting an initiative case research since April 13, 2020 in order to follow up the information conveyed by the public who has complained about the service offers for the Covid-19 rapid test as a package and caused a high price of the said service. The research has been focused on the efforts to find proofs in support of the alleged violations and has been conducted through field surveys and the summoning of various related parties.

During the research, ICC has summoned various hospitals alleged to have committed a tying-in practice for rapid tests and inquired them, collected expert depositions, as well as conducted field surveys in the greater Jakarta (Jabodetabek) and in cities where ICC has Representative Offices (i.e. Medan, Lampung, Surabaya, Balikpapan, and Makassar). To date, ICC has yet to find adequate evidence to be brought to a pre-investigation stage, especially the fulfilment of the element of the impacts of unfair business competition.

Business actors have made changes in terms of the sales of Rapid Test services. In various service brochures issued by hospitals, some hospitals have begun to offer rapid tests that are separate from other health service tests. Hence, the public has been able to buy rapid test services at the moment without having to buy in the form of package with some other health services when conducting a Covid-19 diagnosis.

However, this type of behaviours can be categorized as worthy of pre-investigation, if in its practice it causes unfair business competition. ICC will continue monitoring the information spreading open in the public about the marketing of health products and services during the pandemic. For that reason, ICC requests that the public report immediately when they find tying-in efforts or other forms of violations committed by health service providers. Sanctions will be imposed by ICC on those who seek to violate competition law, especially during the Covid-19 Pandemic period and in the period thereafter.