The Competition Commission has confirmed it has concluded a settlement agreement with the third largest laboratory - Pathcare - to reduce its Covid-19 PCR tests prices with immediate effect.

The Pathcare settlement agreement comes at the back of an official announcement by the Competition Commission that two other major laboratories, Ampath and Lancet Laboratories, have agreed to substantially reduce the price of Covid-19 PCR tests with immediate effect.

The PCR tests costs have been reduced from R850 to R500.

The settlement agreement is subject to the approval of the Competition Tribunal.

The three laboratories also undertook to submit to the commission a compliance report that will include financial statements every three months, to monitor prices charged for the tests, and any material changes in costs.

At the commission’s media briefing on Sunday, Competition Commissioner Tembinkosi Bonakele called on all pathology groups to reduce their Covid-19 PCR tests to R500.

“We also call upon all labs conducting PCR tests to be sensitive to the plight of the public in this time, and use the settlement as a guidance,” he said.

In a statement on Monday, Bonakele said the reduction in costs was a major victory for South Africans, particularly the vulnerable group.

“This substantial reduction of PCR test prices will surely alleviate their plight of consumers and enhance greater access to Covid-19 PCR testing, which is a critical part of the initiatives to avoid the escalation of the pandemic. We hope that the pathology group that has not yet settled with the Commission will follow suit and reduce unjustifiable price of Covid-19 PCR test,” Bonakele said.

Back in October, a complaint was lodged against pathology laboratories with the Council for Medical Schemes alleging that the price for supplying PCR tests was unfairly inflated. The Commission investigated and found that "pathology groups have been earning significant profits since March 2020". They also found that by not reducing their prices, laboratories were exploiting consumers.

The price reduction will remain in effect for a period of two years from the date of confirmation of the consent agreements as orders of the Competition Tribunal, Bonakele said.