Egypt (February 15, 2005)

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Score = 13

Governed by: Law No. 3 of 2005, the Law on the Protection of Competition and the Prohibition of Monopolistic Practices of February 15, 2005 (herein referred to as "Competition Act").[1][2]

Category Subcategory Score Comment
Scope Extraterritoriality 1 Article 5 extends the scope to acts committed abroad should that result in the prevention, restriction or harm of the freedom of competition in Egypt.
Remedies Fines 1 Article 22 provides that the breach of any of the provisions of Articles 6, 7 and 8 of the Competition Act shall be sanctioned by a fine not less than thirty-thousand Egyptian Pounds and not exceeding ten-million Egyptian Pounds.
Prison Sentences 0
Divestitures 1 Article 20 allows the Board to issue a decision to stop a prohibited practice immediately.
Private Enforcement 3rd Party Initiation 0
Remedies Available to 3rd Parties 0
3rd Party Rights in Proceedings 0
Merger Notification Voluntary 1 Article 44 requires notification with 30 days of a merger.
Mandatory 0
Pre-merger 0
Post-merger 1 Article 44 requires notification with 30 days of a merger.
Merger Assessment Dominance 0
Restriction of Competition 0
Public Interest (Pro D) 0
Public Interest (Pro Authority) 0
Other 0
Efficiency 0
Dominance Limits Access 1 Article 4 defines dominance as the ability of a firm, holding a market share exceeding 25%, to have an effective impact on the volume of supply on it, without its competitors having the ability to limit it.
Abusive Acts 1 Article 8 prohibits abusive acts by a dominant firm.
Price Setting 1 Article 4 defines dominance as the ability of a firm, holding a market share exceeding 25%, to have an effective impact on prices, without its competitors having the ability to limit it. Moreover, Article 8(h) prohibits selling products below their marginal cost or average variable cost (predatory pricing).
Discriminatory Pricing 1 Article 8(e) prohibits discriminating between sellers or buyers having similar commercial positions in respect of sale or purchase prices or in the terms of the transaction.
Resale Price Maintenance 0
Obstacles to Entry 1 Article 8(b) prohibits a dominant from from refraining to enter into sale or purchase transactions regarding a product with any firm in a manner that results in restricting that firms’s freedom to access or exit the market at any time.
Efficiency Defense 0
Restrictive Trade Practices Price Fixing 1 Article 6(a) prohibits agreements intending to cause increasing, decreasing or fixing prices.
Tying 1 Article 8(d) prohibits imposing as a condition, for the conclusion of a sale or purchase contract or agreement of a product, the acceptance of obligations or products unrelated by their very nature or by commercial custom to the original transaction or agreement.
Market Division 1 Article 6(b) prohibits agreements dividing product markets or allocating them on grounds of geographic areas, distribution centers, type of customers, goods, seasons or time periods.
Output Restraint 1 Article 6(d) prohibits agreements restricting the production, distribution or marketing operations, or limiting the distribution of services in terms of its kind or volume or applying restrictions or conditions for their availability.
Market Sharing 0
Eliminating Competitors 0
Collusive Tendering/Bid-Rigging 0
Supply Refusal 0
Efficiency Defense 0

References

  1. http://www.globalcompetitionforum.org/regions/africa/Egypt/CompetitionLaw_e.pdf.
  2. http://www.globalcompetitionforum.org/regions/africa/Egypt/ExecutiveRegulations_e.pdf