The Senate’s Economic and Investment Committee is set to continue deliberations on proposed amendments to Egypt’s Competition Protection and Anti-Monopoly Law, with a focus on introducing financial penalties for corporate violations. Chaired by Senator Ahmed Abu Hishima, the discussions will involve relevant government agencies and aim to finalize a legal framework that strengthens market fairness and attracts investment.
The revised legislation grants the Competition Protection Agency authority to impose administrative and monetary sanctions on legal entities found in breach of competition rules, aligning Egypt’s standards with international best practices. Penalties would range from a minimum of 2 percent to a maximum of 15 percent of a company’s annual turnover or total asset value from the latest consolidated financial statements, whichever is higher.
A key provision targets economic concentrations—such as mergers, acquisitions, or joint ventures—that could distort market competition. Notifications to the agency would be mandatory if annual revenues or consolidated assets exceed 900 million Egyptian pounds domestically or 7.5 billion pounds globally.
The draft law also prohibits anti-competitive agreements among rivals, including price-fixing, market sharing, bid-rigging, and resale price maintenance. However, exemptions may be granted for agreements that generate measurable economic efficiencies, provided they meet criteria defined in the law’s executive regulations.
Furthermore, the amendments allow for conditional approval of mergers if blocking them would force a company out of the market or if significant efficiency gains are demonstrated. Coordination with the Financial Regulatory Authority will be required for transactions falling under its jurisdiction.
The overall objective is to foster a transparent, competitive business environment with equal opportunities for all market participants.
— news from \”جريدة المال\”