The Egyptian Competition Authority has taken a significant step in its efforts to combat anti-competitive practices in the country's transportation sector. The authority's board of directors has found 11 members of the Cooperative Production Association for Shipping, Unloading, and Transportation, as well as Container Handling at Suez and Red Sea ports, guilty of violating Article 6a of the Competition Protection and Anti-Monopoly Practices Law No. 3 of 2005.
The violation involves the 11 members agreeing to raise and fix the prices of transportation services for trucks carrying goods to and from Suez and Red Sea ports. This decision was made following an investigation by the competition authority, which gathered evidence and found that the members had indeed colluded to set prices. The authority's investigation revealed that the agreement was made during meetings held at the association's headquarters.
The competition authority considers horizontal agreements, also known as cartel agreements, to be among the most serious anti-competitive practices. Such agreements involve coordination between competitors, which can lead to higher prices, reduced incentives for innovation, and a negative impact on investment. The authority emphasizes that each economic entity should make its decisions independently, without coordinating with competitors, in line with the principles of a free market economy.
The authority's decision to refer the 11 members to the public prosecutor is part of its efforts to address anti-competitive practices in the transportation sector, which is a critical sector for the national economy. The sector's reliance on transportation services means that anti-competitive practices can have far-reaching consequences, affecting not only the sector itself but also other industries and consumers.
This is not an isolated incident, as the competition authority has previously taken action against similar anti-competitive practices in the transportation sector. In a previous case, the authority found that several individuals working in the transportation sector at the Port of Sakhna had colluded to fix prices, leading to their referral to the public prosecutor.
The competition authority is urging anyone who has been involved in or has information about anti-competitive practices to come forward and report them. The authority offers immunity to those who cooperate, in accordance with Article 26 of the Competition Protection and Anti-Monopoly Practices Law.
The authority's efforts to combat anti-competitive practices in the transportation sector are part of its broader mission to promote competition and protect consumers. By taking action against those who engage in anti-competitive practices, the authority aims to create a fair and competitive market that benefits both businesses and consumers.
Key points
- The Egyptian Competition Authority has referred 11 members of a shipping cooperative to the public prosecutor for colluding to fix transportation prices.
- The authority considers horizontal agreements, or cartel agreements, to be among the most serious anti-competitive practices.
- The authority is urging anyone with information about anti-competitive practices to come forward and report them in exchange for immunity.
