Egypt's Competition Protection and Anti-Monopoly Authority has decided to refer two construction companies to the public prosecutor for violating the country's competition law. The Authority found that the two companies had coordinated with each other in several tenders issued by the National Media Authority for construction work on television transmission towers in the Red Sea governorate. This coordination was deemed to be in breach of Article 6/C of Law No. 3 of 2005, which prohibits collusion between competing parties in tenders and auctions.
The Authority received a complaint from the National Media Authority alleging that there was a suspicion of an agreement on which company would win the contract. An investigation was conducted, and evidence was collected, revealing that the two companies had indeed coordinated with each other to divide the areas offered in the tenders. As a result, the Authority's board of directors decided to take legal action against the two companies and notify the public prosecutor to take necessary actions.
The Authority also informed the companies involved that they must immediately and completely cease any agreements, understandings, or coordination, whether explicit or implicit, related to participating in or abstaining from tenders, auctions, and other supply offers that violate Law No. 3 of 2005. The Authority is taking steps to combat collusion among competing parties in government contracts, which can undermine fair competition and harm public funds.
Collusion in government contracts is considered one of the most serious competition offenses, as it undermines the principle of equal opportunities among bidders and harms public funds and the effectiveness of government spending. It also deprives government agencies of obtaining goods and services at the best price and quality, ultimately harming the public interest.
The Competition Protection and Anti-Monopoly Authority praised the cooperation between the Authority and the National Media Authority during the investigation, which contributed to proving the violation by the two companies. The Authority emphasized that cooperation and coordination between relevant agencies and authorities is essential to enhancing its efforts to enforce competition law and improve the efficiency and effectiveness of its regulatory role.
The Authority encourages any person who has participated in or witnessed such anti-competitive practices to come forward and report the incident, taking advantage of the immunity provided in Article 26 of the Competition Protection and Anti-Monopoly Law. This law aims to protect competition, prevent monopolies, and promote a fair and competitive business environment in Egypt.
The referral of the two construction companies to the public prosecutor highlights the Authority's commitment to enforcing competition law and preventing anti-competitive practices in Egypt. The Authority's actions aim to promote a level playing field for businesses, protect public interests, and ensure that government contracts are awarded fairly and transparently.
Key points
- The Egyptian Competition Protection and Anti-Monopoly Authority refers two construction companies to the public prosecutor for colluding in tenders.
- The companies were found to have coordinated with each other in tenders issued by the National Media Authority, violating Egypt's competition law.
- The Authority aims to promote a fair and competitive business environment, prevent monopolies, and protect public interests.
