EGYPT Law and Practice Contributed by: Alex Saleh, Asad Ahmad, Khaled al-Khashab and Mounir Hany, GLA & Company
may include divestment undertakings and behavioural actions. In the event that the execution of the transaction requires written authorisation from the NTRA or the CBE and falls under the category triggering consent from both authorities and the written approval has neither been requested nor granted, the NTRA or the CBE, in terms of practice, may be entitled to block the execution of the transaction or suspend it. The NTRA and CBE may intervene in this situation and the concerned parties must carry out the required proce - dure. If they do not, their operational licences might be revoked. 5.2 Parties’ Ability to Negotiate Remedies The parties’ ability to renegotiate remedies will be examined in practice with the implementation of the Amendments and the ECA’s treatment on a case-by- case basis will be examined. 5.3 Legal Standard The legal standard for remedies is not enshrined in the Egyptian Competition Law. It is therefore presumed that the precedents that will be made will be consid - ered the standard practice once the Amendments are fully in force. 5.4 Negotiating Remedies With Authorities Based on the firm’s understanding of the Egyptian Competition Law as well as informal discussions with ECA officials, it is possible to remedy competi - tion issues, eg, by giving divestment undertakings or behavioural remedies. Violations of the Egyptian Competition Law can be settled upon the approval of the ECA’s board. If the settlement was concluded before the criminal lawsuit was filed or any procedures in this respect were taken, the minimum stipulated fine will be the maximum of the settlement amount. If the settlement was made after the criminal lawsuit was filed or any procedures in it taken, but before the final court judgment was issued, an amount of at least three times the minimum stipulated fine and no more than half of its maximum will be paid. Settlement will terminate the criminal law - suit. Agreements that violate the Egyptian Competi -
tion Law are considered null and void for having a criminal purpose. Private enforcement of the Egyptian Competition Law remains in its early stages. However, in line with the general rules of Egyptian Civil Law, persons harmed by violations of the Egyptian Competition Law may claim compensation from the competent court for the actions of the person who committed the violation, where specific performance was not feasible. This does not have to be related to the criminal court action and the claimant can request compensation before the competent civil court, even if the ECA did not refer the matter to the court. The Amendments remain silent on this point. The firm anticipates more information regarding the implementation of negotiation remedies, with the ECA to be released upon further application of the Amendments. 5.5 Conditions and Timing for Divestitures The conditions for and timing of, divestitures are not enshrined in the Egyptian Competition Law or the Executive Regulations. It is anticipated that the ECA will issue guidelines on remedies. However, if guide - lines are not issued, remedies will be considered on a case-by-case basis. 5.6 Issuance of Decisions Formal decisions permitting or prohibiting transac - tions are made publicly available by the ECA and are generally published on the authority’s website. A statement and a summary of the transaction will also be published in a widely circulated daily newspaper, in accordance with Article 56 of the Executive Regu - lations. 5.7 Prohibitions and Remedies for Foreign-to- Foreign Transactions In the event that the ECA concludes that a foreign-to- foreign transaction will fundamentally affect the stra - tegic ownership and management of locally based entities subject to the Egyptian legal and regulatory framework, no direct action may be taken against the foreign entity. However, in line with international prec - edents and in consultation with the relevant regulatory bodies, the operating licences of local entities might be revoked or suspended for transparency, public
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