EGYPT Law and Practice Contributed by: Alex Saleh, Asad Ahmad, Khaled al-Khashab and Mounir Hany, GLA & Company
3.7 Review Process The ECA
In terms of those “economic concentrations” where the target person operates in any of the activities sub - ject to the supervision and “control” of the FRA, the ECA will review the “economic concentration” within 30 days starting from the day following the receipt of the complete notification file and its attachments from the FRA. Decisions Regarding Phase I The ECA may issue any of the following decisions: • non-jurisdiction of the ECA to review the notifica - tion file; • dismissal of the request (in this case, the con - cerned persons abandoned the “economic con - centration”); • clearance (if the notified “economic concentra - tion” conforms with Article 19 bis b of the Egyptian Competition Law); • conditional clearance (if the “economic concentra - tion” conforms with Article 19 bis b of the Egyptian Competition Law, upon approval of the commit - ments offer submitted by the concerned persons); or • referral to phase II of the review process (if the “economic concentration” raises suspicion of lessening, restricting or harming the freedom of competition). Decisions Regarding Phase II The ECA may issue any of the following decisions: • dismissal of the request (in this case, the con - cerned persons abandon the “economic concen - tration”); • clearance (if the notified “economic concentra - tion” conforms with Article 19 bis b of the Egyptian Competition Law); • conditional clearance (if the “economic concentra - tion” conforms with Article 19 bis b of the Egyptian Competition Law, upon approval of the commit - ments offer submitted by the concerned persons); or • block (if the “economic concentration” may restrict, lessen or harm competition).
Article 22 bis d of the Egyptian Competition Law states that any person who obtains a clearance decision to implement the “economic concentration” in line with Article 19 bis c or Article 19 bis d of the Egyptian Competition Law by deliberately submitting incorrect data, information or documents is going to be fined between 1% and 10% of the total annual turnover or value of assets or value of the transaction of the concerned persons, whichever is higher, according to the latest audited consolidated financial statements. If it is not possible to calculate this percentage, the fine will be between EGP30 million and EGP500 million. The FRA Article 22 bis d of the Egyptian Competition Law states that any person who obtains a clearance deci - sion from the FRA pursuant to Article 19 bis e of the Egyptian Competition Law by deliberately submitting incorrect data, information or documents will be fined between 1% and 10% of the total annual turnover or value of assets or value of the transaction of the concerned persons, whichever is higher, according to the latest audited consolidated financial statements. If it is not possible to calculate this percentage, a fine of between EGP30 million and EGP500 million will be imposed. 3.8 Pre-Notification Discussions With Authorities The ECA will review the “economic concentration” in phase I within 30 working days. This 30-day period will start on the next working day after the completed noti - fication file is submitted. This period may be extended by another 15 working days in those cases where the concerned persons submit a commitment offer. If the legal time limit for the review lapses without a decision being issued, this will be considered to be a clearance of the “economic concentration”. The ECA will continue to review the notification file for 60 working days, starting from the date the review committee issues a decision referring the notification file to phase II. This period may be extended by 15 working days in those cases where the concerned persons submit a commitment offer.
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