Egypt's device for protecting competition and preventing monopolistic practices has decided to refer two construction companies to the public prosecutor's office. The move comes after an investigation found that the companies had coordinated their bids for a tender issued by the National Media Authority. The tender was for construction work on television transmission towers in the Red Sea governorate.
The competition watchdog's investigation found that the two companies had colluded in breach of Article 6/c of Law No. 3 of 2005. This law prohibits competitors from coordinating their bids or withdrawing from tenders and auctions. A complaint from the National Media Authority had prompted the investigation, which uncovered evidence of the companies' collusion.
The companies involved in the collusion will face legal action, with the competition watchdog's board deciding to press charges and notify the public prosecutor's office. The companies have also been ordered to immediately stop any further coordination or agreements that could breach competition law. This includes any informal or formal understandings about bidding on tenders or supplying goods and services.
Collusion in public contracts is considered a serious offense under Egyptian competition law. It undermines fair competition and can result in higher costs for the government and poorer quality goods and services. The competition watchdog emphasized that its role is to protect competition and promote a level playing field for businesses.
The case highlights the importance of cooperation between different agencies and authorities in detecting and preventing anti-competitive practices. The competition watchdog praised the National Media Authority for its cooperation during the investigation, which helped to uncover the evidence of collusion.
The competition watchdog encouraged any individuals or businesses involved in similar anti-competitive practices to come forward and report their involvement. They may be eligible for immunity or leniency under Article 26 of the competition law.
The Egyptian government has been working to strengthen competition law and enforcement in recent years. The country's competition watchdog plays a crucial role in promoting fair competition and preventing monopolistic practices.
Key points
- The Egyptian competition watchdog has referred two construction companies to the public prosecutor's office for colluding on a tender issued by the National Media Authority.
- The companies were found to have coordinated their bids in breach of competition law, which prohibits competitors from colluding on tenders and auctions.
- The case highlights the importance of cooperation between different agencies and authorities in detecting and preventing anti-competitive practices.
