The Egyptian Competition Authority (ECA) has referred five companies to the Public Prosecution for violating competition rules in contracts to supply electronic grading devices and papers to Alexandria University. According to the ECA, the companies had colluded and coordinated with one another in five contractual processes, in violation of Article 6(c) of Law No. 3 of 2005 on the Protection of Competition and the Prohibition of Monopolistic Practices.
The ECA's investigation found that the companies had agreed in advance which of them would win each contract. The law bans agreements or contracts between competing persons in any market concerning participation in, or refraining from participating in, tenders, auctions, procurement practices and other supply offers. The ECA ordered the companies to stop immediately and completely any explicit or implicit agreement, understanding or coordination.
The ECA praised the positive and productive cooperation with Alexandria University during the examination, saying it contributed to establishing the companies' violations. The authority stressed that cooperation and coordination among relevant authorities and entities are a key pillar in strengthening the ECA's efforts to enforce competition law and enhancing the efficiency and effectiveness of its oversight role.
The ECA's move is part of its efforts to combat collusion among competitors in government contracts. The authority urged anyone involved in such anti-competitive practices to promptly report the violations and benefit from the exemption provided under the Competition Law. According to the ECA, horizontal agreements, or cartels, are among the most serious competition offences.
International studies have shown that such agreements can raise government procurement prices by up to 50 percent above their actual value, harming the public budget by diverting resources that could otherwise be used for development projects. The ECA said that its efforts aim to protect competition in markets and create a fair competitive environment that encourages innovation and competition.
The ECA's examination and evidence-gathering procedures found that the companies had exchanged commercially sensitive information with competitors, directly or indirectly. The authority ordered the companies to refrain from such practices and to comply with the Competition Law. The ECA's decision to refer the companies to the Public Prosecution reflects its commitment to enforcing competition law and promoting a fair business environment.
The case highlights the importance of competition law in ensuring fair competition and protecting public resources. The ECA's efforts to combat collusion and promote competition are crucial in maintaining a level playing field for businesses and preventing harm to the public interest. The authority's actions demonstrate its dedication to promoting a competitive and fair market environment in Egypt.
Key points
- The Egyptian Competition Authority referred five companies to the Public Prosecution for violating competition rules in contracts to supply electronic grading devices and papers to Alexandria University.
- The companies were found to have colluded and coordinated with one another in five contractual processes, in violation of Article 6(c) of Law No. 3 of 2005 on the Protection of Competition and the Prohibition of Monopolistic Practices.
- The ECA's efforts aim to protect competition in markets and create a fair competitive environment that encourages innovation and competition.
