EGYPT Law and Practice Contributed by: Alex Saleh, Asad Ahmad, Hegui Taha and Farida Koura, GLA & Company
high. Local operators are struggling economi - cally, especially with the rise of many economic challenges locally or globally. The ECA focuses its efforts on providing a more equally efficient platform for existing operators and providing a space for other operators to penetrate the rel - evant 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 interest, public interest, national security, economic efficiencies and the protection of minority shareholders are all considered when clearance and pre-approval are needed in specific sectors such as telecom - munications and banking. This will also apply from a strict Egyptian Competition Law perspec - tive as approval and clearance by the ECA are required as conditions to closing 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 violations of the Competition Law. These correc - tive actions may include divestment undertak - ings 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 grant - ed, 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 procedure. 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 considered the standard practice once Based on the firm’s understanding of the Egyp - tian Competition Law as well as informal discus - sions with ECA officials, it is possible to remedy competition 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 crim - inal 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 the Amendments are fully in force. 5.4 Negotiating Remedies With Authorities
179 CHAMBERS.COM
Powered by FlippingBook