The Egyptian Competition Authority has referred five companies to the public prosecution for colluding in tender processes for supplying devices and electronic correction papers to Alexandria University. The Authority's board of directors found that the companies had coordinated with each other to determine the winning bidder in five tender processes, violating Article 6/C of the Competition Protection Law No. 3 of 2005. This law prohibits agreements or contracts between competing parties in any market regarding participation or abstention from participating in tenders and auctions.
The Authority initiated an examination of the tender processes announced by Alexandria University and found evidence of prior agreements between the companies that submitted bids. The investigation revealed that the companies had agreed on which company would win the tender. As a result, the Authority's board of directors decided to file a criminal lawsuit against the five companies and refer them to the public prosecution to take the necessary legal actions.
In addition to referring the companies to the public prosecution, the Authority ordered them to take administrative measures, including immediately and completely stopping any agreements, understandings, or coordination, whether explicit or implicit. The companies were also required to refrain from exchanging or making available any sensitive commercial information to their competitors, either directly or indirectly, in accordance with the provisions of Law No. 3 of 2005.
The Authority considers horizontal agreement crimes, also known as cartels, to be among the most serious competition crimes. These crimes restrict competition and create barriers to market entry and expansion. Their impact is even more significant when they involve government contracts, as they harm not only the market structure and consumers but also the effectiveness of public spending and the state's public interest.
International studies have shown that such agreements can lead to an increase in government purchases by up to 50% above their real value, harming the public budget and depriving it of resources that could be used for other development projects. The Authority praised the positive and fruitful cooperation between the Authority and Alexandria University during the investigation, which contributed to proving the companies' wrongdoing.
The Authority emphasized that cooperation and coordination between concerned agencies and parties is a fundamental pillar for enhancing its efforts to enforce the Competition Protection Law and improve the efficiency and effectiveness of its regulatory role. This cooperation aims to combat anti-competitive practices, protect competition in markets, and create a fair competitive environment that encourages innovation and competition.
The Authority called on individuals who have engaged in or participated in such anti-competitive practices to promptly report the incident and take advantage of the exemption under Article 26 of the Competition Protection and Anti-Monopoly Law. By doing so, they can avoid penalties and contribute to promoting fair competition in the market.
Key points
- The Egyptian Competition Authority referred five companies to the public prosecution for colluding in tender processes for supplying devices and electronic correction papers to Alexandria University.
- The companies were found to have coordinated with each other to determine the winning bidder in five tender processes, violating the Competition Protection Law.
- The Authority ordered the companies to stop any agreements or coordination with competitors and refrain from exchanging sensitive commercial information.
