The role of competition law to facilitate the achievement of competitive outcomes in the healthcare sector

Abstract

Competition law is defined as the rules or provisions which set out to safeguard and sustain a market where fair, yet vigorous, competition will result in the most effective allocation of economic resources and in the production of goods and services at the lowest price. Competition law is thereby designed to create a parallel playing field where big and small businesses can compete fairly and efficiently. During 2013 to 2019, the Competition Commission deriving its powers from section 43B(1) of the Competition Act 89 of 1998 conducted a market inquiry into the private healthcare market on the reasonable belief that certain features of the market impede, distort and restrict competition within the market. The market inquiry was undertaken for purposes of uncovering competition concerns in market and also as a means of offering remedies and policy reforms to restore competition and to advance the purpose of the Competition Act. Upon conclusion of the market inquiry, the Competition Commission released a report which outlined its findings and further set out recommendations on how to improve the competition within the health care market. This dissertation seeks to determine what the role of competition law is in facilitating the competitive outcomes in the South African healthcare market. It further focuses on where the South African private healthcare market and competition law meet.