EGYPT Law and Practice Contributed by: Alex Saleh, Asad Ahmad, Khaled al-Khashab and Mounir Hany, GLA & Company
• the potential impact on consumers (eg, prices, choice) and actual or future investments in the market; • the potential impact of the “economic concentra - tion” on innovation and development; and • the overall likelihood of the “economic concen - tration” restricting competitive behaviour in the market is a decisive factor. 4.2 Markets Affected by a Transaction When it comes to the definition of relevant market, the relevant market under the Egyptian Competition Law is composed of two elements: the relevant product (good or service) and the relevant geographical area. • Relevant products are those that are effective substitutes from the consumer’s point of view. The main illustrative criteria for considering one product a substitute for another are the similarity in the specifications or uses of those products and the likelihood that consumers will switch from one product to another in response to changes in price or other competitive factors. A secondary criterion is whether sellers base their business decisions on consumer switching from the product due to price changes or other competitive factors. • The relevant geographical area is the area where competitive conditions are homogeneous, taking potential competitive opportunities into account. Under Article 6 of the Executive Regulations, two criteria are taken into account: (a) the ability of the buyer to move from the rel- evant geographical area to another in Egypt or abroad as a result of changes in pricing or other competitive circumstances; and (b) the ability of the seller in Egypt or abroad to move to the relevant geographical area as a result of price changes or other competitive circumstances. Certain factors must be taken into account to evaluate the ability of the buyers and sellers: • transportation costs (including time spent and insurance fees); and • customs and other non-customs restraints.
Despite the most recent amendment to the Executive Regulations, the competition concerns remain unad - dressed to a large extent. 4.3 Reliance on Case Law The ECA is proactive when it comes to references to precedents and case law. There is a reliance on case law in important and strategic sectors. 4.4 Competition Concerns Many competition concerns are connected to ver - tical and horizontal arrangements and to abuse of dominance, particularly when market share is high. Local operators are struggling economically, espe - cially amid rising economic challenges both locally and globally. The ECA focuses its efforts on providing a more efficient platform for existing operators and providing a space for other operators to penetrate the relevant markets in the future. The main concern will be addressing sustainable competition in strategic sectors such as healthcare, food and national security. 4.5 Economic Efficiencies The ECA considers economic efficiencies. However, the extent of this consideration is not apparent (see 2.14 Exceptions to Suspensive Effect ). 4.6 Non-Competition Issues Industrial policy, user/consumer interests, public interest, national security, economic efficiency and the protection of minority shareholders are all con - sidered when clearance and pre-approval are required in specific sectors such as telecommunications and banking. This will also apply from a strictly Egyptian Competition Law perspective, as approval and clear - ance by the ECA are required as conditions to the closing of transactions. 4.7 Special Consideration for Joint Ventures See 2.10 Joint Ventures . 5. Decision: Prohibitions and Remedies 5.1 Authorities’ Ability to Prohibit or Interfere With Transactions The ECA can take corrective actions to remedy viola - tions of the Competition Law. These corrective actions
179 CHAMBERS.COM
Powered by FlippingBook