EGYPT Law and Practice Contributed by: Alex Saleh, Asad Ahmad, Hegui Taha and Farida Koura, GLA & Company
3.9 Pre-Notification Discussions With Authorities The concerned persons can discuss the “eco - nomic concentration” prior to its implementation with the competent persons at the ECA before officially submitting the notification file in cases where they have any inquiries. These discus - sions will not have any legal implications. Any inquiries concerning the impact of the “eco - nomic concentration” on the market will not be discussed in the pre-notification discussions. 3.10 Requests for Information During the Review Process Requests for information are common and expected, depending on the application submit - ted. Requests will effectively suspend the time otherwise imposed by the ECA to process an application. The ECA will initially review the notification file provided and will notify the submitting party within five days of receiving the submission of whether it is complete. However, there is no indication of a specific timeframe for completing the notification form before the ECA. The review period will not commence unless the ECA pro - vides the submitting party with a receipt confirm - ing the completion of the notification file. 3.11 Accelerated Procedure Simplified procedures are applied to “economic concentrations” that are unlikely to restrict the freedom of competition in the market(s). The “economic concentrations” that are subject to the simplified procedures are exclusively as follows. • The persons concerned with the “economic concentration” meet the domestic notifica -
tion thresholds stated in Article 19 bis (a) of the Egyptian Competition Law, if the annual turnover or the value of assets in Egypt of the persons concerned with the ”economic con - centration” combined do not exceed EGP2 billion for the latest year in the last audited consolidated financial statements. • The persons concerned with the “economic concentration” meet the worldwide notifica - tion thresholds stated in Article 19 bis (b) of the Egyptian Competition Law, if the annual turnover in Egypt of the target does not exceed EGP500 million for the latest year in the last audited consolidated financial state - ments. • Establishing or acquiring a joint venture that carries out an independent and permanent economic activity outside of Egypt. • Establishing or acquiring a joint venture that carries out an independent and permanent economic activity in markets that are not horizontally or vertically related or otherwise related to the markets in which the parent companies operate. • Conglomerate “economic concentrations” between persons operating in markets that are not horizontally or vertically related or otherwise related to each other. • Acquisition of sole “control” over one or more persons after the acquiring person or per - sons exercised joint ”control” over the same person.
4. Substance of the Review 4.1 Substantive Test
Under Article 19 bis (b) of the Egyptian Com - petition Law and Article 54 of the Executive Regulations, an “economic concentration” will be prohibited if it results in a substantial lessen - ing, restriction or harm to competition. The ECA
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