The Egyptian Competition Protection Authority has referred five companies to the public prosecution for colluding in contractual processes at Alexandria University. The companies were found to have coordinated with each other in five contractual operations, 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 bids, tenders, or supply offers.
The authority's investigation into the contractual processes at Alexandria University revealed that the companies had pre-agreed on which company would win the contract. The authority's board decided to take legal action against the companies and refer them to the public prosecution. The companies were also required to take administrative measures, including immediately stopping any agreements or coordination with competitors and not sharing sensitive commercial information.
The Competition Protection Authority emphasized that horizontal agreements, or cartels, are among the most serious competition crimes, as they restrict competition and hinder market entry and expansion. These agreements are particularly concerning when they involve government contracts, as they can harm the effectiveness of public spending and the state's public interest.
According to international studies, such agreements can lead to a 50% increase in government purchases compared to their actual value, harming the state's budget and depriving it of resources that could be used for other development projects. The authority praised its cooperation with Alexandria University during the investigation, which contributed to uncovering the companies' wrongdoing.
The authority stressed that cooperation and coordination between relevant agencies and entities are essential for enhancing its efforts to enforce the Competition Protection Law and promote a fair competitive environment that encourages innovation and competition. The authority also called on individuals involved in such anti-competitive practices to report the incidents and take advantage of the immunity provided in Article 26 of the Competition Protection Law.
The Competition Protection Authority's decision to refer the companies to the public prosecution demonstrates its commitment to combating anti-competitive practices and protecting competition in the market. The authority's efforts aim to promote a fair and competitive business environment, which is essential for Egypt's economic growth and development.
The case highlights the importance of enforcing competition laws in Egypt, particularly in government contracts. The authority's actions are expected to have a positive impact on the market, promoting fair competition and preventing similar anti-competitive practices in the future.
Key points
- The Egyptian Competition Protection Authority refers five companies to public prosecution for colluding in contractual processes at Alexandria University.
- The companies were found to have coordinated with each other in five contractual operations, violating Article 6/C of the Competition Protection Law No. 3 of 2005.
- The authority's efforts aim to promote a fair and competitive business environment, which is essential for Egypt's economic growth and development.
