Competition Law at Egypt
Competition Law in Egypt
Egypt has a well-established competition law framework aimed at promoting fair competition, protecting consumers, and regulating anti-competitive practices.
Key Legislation:
Law No. 3 of 2005 on the Protection of Competition and the Prohibition of Monopolistic Practices (commonly called the Competition Law).
Amended by Law No. 151 of 2020, which strengthened enforcement and updated procedural rules.
Regulatory Authority:
The Egyptian Competition Authority (ECA) is the main body responsible for enforcing competition law.
The ECA reviews mergers, investigates anti-competitive conduct, and imposes penalties.
Main Features:
1. Prohibited Anti-Competitive Agreements
Agreements between competitors or related entities that prevent, restrict, or distort competition are prohibited.
Includes price fixing, market sharing, bid rigging, and limiting production or supply.
Both horizontal and vertical agreements are covered.
2. Abuse of Dominant Position
Firms holding a dominant position in the market cannot abuse it.
Prohibited practices include predatory pricing, exclusive dealing, refusal to supply, discriminatory treatment.
3. Merger Control
Mandatory prior notification to the ECA for mergers and acquisitions that meet specific turnover or market share thresholds.
The ECA reviews to ensure mergers do not substantially lessen competition.
4. Investigative and Enforcement Powers
The ECA can conduct investigations, including dawn raids and requests for information.
Can impose fines up to 10% of the violating company’s annual turnover.
Fines may be doubled for repeat offenders.
5. Leniency Program
The law includes leniency provisions to encourage companies to report cartel activities and cooperate with investigations.
Summary Table:
| Aspect | Details |
|---|---|
| Key Law | Law No. 3 of 2005 (amended by Law No. 151/2020) |
| Enforcement Authority | Egyptian Competition Authority (ECA) |
| Prohibited Practices | Cartels, anti-competitive agreements, abuse of dominance |
| Merger Control | Mandatory notification above thresholds |
| Penalties | Fines up to 10% of turnover, increased for repeat violations |
| Leniency Program | Available for whistleblowers |
Additional Notes:
The Egyptian competition law aligns with international best practices.
There is increasing focus on digital markets and new economy sectors.
The ECA actively cooperates with international competition authorities.
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