Competition Protection and Anti-Monopolistic Practices

For the purposes of these regulations, the following words and phrases shall have the meanings assigned to them below, unless the context otherwise requires:
Minister: The Minister of Economy and Trade.
Committee: The Competition Protection and Anti-Monopoly Committee.
Persons: Natural or legal persons engaged in economic or commercial activity.
Competitors: Persons who are capable of engaging in the same activity in the relevant market, either now or in the future.
Products: Goods and services.
Control and Dominance: The ability of a person or group of persons acting together to control the market for a product and exert an effective influence on prices or the volume of its supply, without their competitors being able to limit this.
The relevant market: Based on two elements: the relevant products and the geographical scope. The relevant products are defined as all products that are substitutes for each other or can replace each other from the perspective of the recipient of the service or good. This includes products offered by competitors in other markets near the consumer. The geographical scope is defined as the market that includes the geographical area where conditions of competition are homogeneous and within which both sellers and buyers of products deal to determine prices.

The two components of the relevant market are determined as follows:
First, the relevant products: This is determined by any of the following criteria:
1. Similarity of the products in terms of characteristics and use.
2. The extent to which buyers can switch from one product to another as a result of relative price changes or other competitive factors, and whether sellers base their business decisions on this switching.
3. The relative ease with which other parties can enter the relevant market.
4. The availability of substitute products to the consumer.
Second, the geographical scope: This is determined by potential competitive opportunities and any of the following criteria:
1. The extent to which buyers can move between geographical areas as a result of relative price changes or other competitive factors, and whether sellers base their business decisions on this movement.
2. The relative ease with which other parties can enter the relevant market.
3. Transportation costs between geographical areas, including insurance costs and the time required to supply the relevant geographical area with the relevant products from other markets or geographical areas.
4. Customs duties and non-tariff barriers at the domestic and international levels.

A person is considered to have significant influence over product prices or supply volumes in a given market when, through their own practices, they can determine the prices or supply volumes of those products without their competitors being able to prevent these practices. This is determined by considering the following factors:
1. The person's market share and position relative to other competitors.
2. The person's actions in the relevant market in the preceding period.
3. The number of competitors in the relevant market and their relative influence on the market structure.
4. The extent to which both the person and their competitors have access to the raw materials necessary for production.
5. The existence of barriers to entry for other entrants into the relevant market.

Coordination or agreement between competing parties in any relevant market is prohibited regarding the submission or abstention from submitting bids in tenders, practices, auctions, and supply offers.
Such coordination or agreement is indicated by the following:
1. Submitting identical bids, including agreeing on common rules for calculating prices or determining bid terms.
2. Agreeing on the bidder, including pre-arranging the winning bidder, whether on a rotational, geographical, or customer-sharing basis.
3. Agreeing to submit sham bids.
4. Agreeing to prevent a person from entering or participating in bidding.

An agreement or contract between a person and any of their suppliers or customers is prohibited if it restricts competition. This will be determined by the committee's examination of each individual case, taking into account the following factors:
1. The impact of the agreement or contract on free competition in the market.
2. The benefits accruing to the consumer from the agreement or contract.
3. Considerations for maintaining product quality and safety requirements, provided they do not harm competition.
4. The extent to which the terms of the agreement or contract conform to established commercial practices in the activity under examination.

Selling products at a price below their marginal cost or average variable cost is an illegal practice, prohibited for persons with a dominant market position, according to Article 10, Paragraph 4 of Law No. 19 of 2006.
Marginal cost refers to the unit cost of the product relative to the total cost over a specific period, while variable cost refers to the cost that changes with the volume of products offered by the person during a specific period.
Average variable cost refers to the total variable costs divided by the number of units of the product.
The following should be considered when determining whether a product is being sold at a price below its marginal cost or average variable cost:
1. Whether the sale drives competitors out of the market.
2. Whether the sale prevents competitors from entering the market.
3. Whether the sale enables the dominant person to raise prices after eliminating competitors.
4. The effect of the time period during which the sale occurs on any of the outcomes mentioned in the preceding paragraphs.

Applications for exemption of tenders, agreements, and contracts restricting competition from the scope of the prohibition stipulated in Articles (3) and (4) of Law No. (19) of 2006, referred to above, must be submitted in writing to the Minister before the tender is submitted or the agreement or contract is concluded.
The application must include a full explanation of its grounds and a statement of the public interest it serves or the benefits it provides to the consumer and must be accompanied by supporting documents.

The Minister may refer the request to the committee for study and preparation of a report on it within a period not exceeding thirty days from the date of its referral to it, and it may be extended for another similar period.

The minister shall decide on the request within thirty days from the date of its submission, or from the date of the committee's report on it, as the case may be.

The Minister’s decision to approve the aforementioned exception must be based on achieving a consumer interest that outweighs the effects of limiting free competition; otherwise, the request must be rejected, and the rejection decision must be justified.

Any person may report any violation of the provisions of Law No. (19) of 2006 to the Committee, provided that the report is submitted in writing and includes the following:
1. The name, address, occupation, capacity, and interest of the person submitting the report.
2. The name, address, and nature of the activity of the person against whom the report is made.
3. The type of violation reported and the evidence of its occurrence.
4. A statement of any harm suffered by the person submitting the report, if any.
Supporting documents, if available, must be attached to the report.
The Committee may disregard any report that does not contain the aforementioned information.

The report is immediately recorded in a register prepared for this purpose upon submission to the committee, and the person making the report is given a receipt with the report's registration number and date. Cases that the committee examines on its own initiative are recorded in a separate register prepared for this purpose.
Both registers regularly record the actions taken in the cases registered therein, as well as any decisions or rulings issued.

The committee examines the reports submitted to it, and on its own initiative, without the need to submit a report, it may take the necessary measures regarding cases of agreements, contracts and practices that are harmful to competition or illegal.

The committee may assign one or more of its members to perform specific tasks within its purview or to oversee any aspect of its activities. The assigned member(s) shall prepare reports on their assigned tasks, which shall be submitted to the committee.

After completing the examination procedures or reviewing the report on the case presented, the committee may recommend that the matter be closed.

If the committee finds a violation of any of the provisions of Articles (3), (4), and (10) of the law, it shall instruct the violator to rectify the situation and remove the causes of the violation immediately or within a specified timeframe.
The violator shall be notified of this instruction by registered mail with return receipt requested.
The committee may issue a decision to immediately cease the prohibited practices, or after the specified timeframe has expired without the situation being rectified and the violation being removed.

Without prejudice to the provisions of the two preceding articles, the committee shall submit a report on the case presented to the Minister, or whomever he authorizes to take the necessary steps to request the initiation of criminal proceedings.

The notification stipulated in Article (10) of the Law shall be submitted to the Committee in writing, including the following information:
1. The name of the notifying party, the names and nationalities of any related parties, their administrative offices, and the main centers of their activities.
2. The legal transaction subject to notification and its legal implications.
3. The licenses and approvals obtained.
The notification must be accompanied by supporting documents for the aforementioned information and a declaration that the transaction subject to notification will not be completed until the Committee issues its decision approving it or ninety days have elapsed from the date the notification reaches the Committee without a decision being issued.