The Egyptian Competition Authority Brings Criminal Claims Against 14 Violators for Fixing Prices
The Egyptian Competition Authority (“ECA”) is currently investigating and examining the possible violations of its rules and regulations specifically in the market sectors of Aluminum, steel, manufacturing of utensils and other products.
With the start of the month of September, the ECA’s initiated criminal proceedings against 14 manufacturers of aluminum entities for allegedly engaging in price fixing. This correlates with the ECA’s main agenda to raise awareness and deterrence in relation to the anti-competitive practices that are being examined and its relative sanctions.
The ECA began observing the aluminum sector in order to determine the conduct of key players and the impact that the key competitors are causing on the market. The ECA’s investigation revealed that it was agreed between 14 manfacturers to artificially raise and fix the price per ton of aluminum. Such agreement is considered by the ECA to constitute a horizontal agreement in violation of the prohibited practices under the Egyptian Competition Law, and consequently, it harms the natural functioning of market dynamics as it hinders companies from reducing the costs.
The ECA has decided that it has sufficient evidence to bring criminal claims against the 14 companies and seek criminal sanctions from the violating companies as well as all relevant individuals.
As part of the ECA recent developments and awareness programs, it also has taken steps to advertise the Egyptian leniency program which deals similar situations.
It is clear from the above that the ECA is keen on implementing the regulations against any cartels and thoroughly examining all actions that are being discretely or publicly conducted by operators across various sectors within the Egyptian market.
How can we help?
GLA’s team of experienced lawyers across multiple jurisdictions (including Egypt, Saudi Arabia, Kuwait, and UAE) are happy to assist the companies with any queries and rectification as may be required to ensure compliance with the applicable competition law in the country of jurisdiction.