The Egyptian Competition Protection Authority has referred 11 members of the Cooperative Production Association for Shipping, Unloading, and Transportation of Containers at the ports of Suez and the Red Sea to the public prosecution. The decision was made after an investigation found that the members had agreed to raise and fix prices for transportation services. This practice is considered a violation of the Competition Protection and Anti-Monopoly Law.
According to the investigation, the members of the cooperative, who hold key positions, had engaged in discussions and agreements to set prices for transportation services. These agreements were found to have taken place during meetings held at the cooperative's headquarters. The Competition Protection Authority has deemed this behavior a breach of Article 6 of the Competition Protection and Anti-Monopoly Law.
The Competition Protection Authority views horizontal agreements, also known as cartel agreements, as a serious threat to competition. Such agreements involve coordination between competitors to set prices or restrict output. The authority stresses that each economic entity should make independent decisions, without colluding with competitors, in line with market economy principles.
The authority considers price-fixing agreements particularly problematic, as they can lead to higher prices, reduced incentives for cost-cutting and innovation, and harm to the investment climate. The agreements can also create barriers to entry for new businesses, ultimately affecting market structure and consumers.
This is not an isolated incident, as the Competition Protection Authority has previously dealt with similar cases in the transportation sector. In one instance, the authority found that several individuals working in the transportation sector at the Port of Sakhna had engaged in price-fixing agreements. The authority's actions demonstrate its commitment to addressing anti-competitive practices.
The Competition Protection Authority's efforts aim to promote fair competition, particularly in strategic sectors like transportation. The authority emphasizes that restricting competition in transportation can have far-reaching consequences, affecting not only the transportation market but also other sectors that rely on transportation services.
The authority encourages individuals involved in anti-competitive practices to come forward and report their involvement, potentially benefiting from immunity under Article 26 of the Competition Protection and Anti-Monopoly Law. The authority's actions underscore its dedication to protecting competition and promoting a fair business environment in Egypt.
Key points
- The Egyptian Competition Protection Authority has referred 11 members of a shipping cooperative to public prosecution for price-fixing.
