Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    US employment cost index 3.6% up in year to June 2025    Egypt welcomes Canada, Malta's decision to recognise Palestinian state    Pakistan says successfully concluded 'landmark trade deal' with US    Sterling set for sharpest monthly drop since 2022    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Amended anti-monopoly law a disappointment, says ECA chair
Published in Daily News Egypt on 17 - 06 - 2008

CAIRO: Monopolistic business practices will now be fined between LE 100 million and LE 300 million, according to the amended version of the anti-monopoly law passed by the People's Assembly (PA) late Sunday.
Many were awaiting the approval of proposed amendments to create a failsafe law that will regulate competition in the ever-growing market. However, the final version of the law passed by the PA saw no concrete amendments, leaving the public and those who proposed the changes disappointed.
"The outcome is not what we had expected or hoped for, Mona Yassine, chairperson of the Egyptian Competition Authority (ECA), told Daily News Egypt.
The ECA, the regulatory body that initially proposed the amendments, recommended the monetary penalty be increased to a percentage of the company's sales, either 10 or 15 percent. Another vital aspect of the amendment was the introduction of the leniency clause, which exonerates the first to report a cartel from all charges.
The leniency clause was refused altogether.
The ECA had proposed the amendments after conducting extensive research, which showed that the leniency clause has proven successful in other countries. "The leniency program is very beneficial and encourages people to report cartels, Yassine said.
"We proposed that there be a leniency program and a penalty comprised of a percentage of the sales, [but] passing the law with a fixed penalty of LE 300 million will benefit companies as it is not such a big figure compared to the profits these companies make, Yassine said.
The terms of the final law passed by parliament came as a surprise to the ECA and opposition members. The ECA had met with PA's economic committee and all members showed support for the amendments, agreeing that rigorous changes were needed to regulate competition and prevent monopolistic practices in the market.
In parliamentary sessions discussing the proposed law, Minister of Trade and Industry Rachid Mohamed Rachid had expressed his support and was pushing for the amendments to be approved.
"We had discussed the law with the parliament's economic committee and they all seemed convinced and encouraged our propositions, Yassine said.
In July 2006, the ECA began investigations into the cement and steel sectors upon a request from Minister of Trade and Industry Rachid Mohamed Rachid. The authority concurred early October that there existed a cartel among cement companies, charging 20 cement executives with price-fixing.
On the other hand, investigation on steel companies is still ongoing.
MP Ahmed Ezz, also affiliated with the ruling National Democratic Party, controls 60 percent of the local steel market.
According to Alaa Abdel Moneim, PA opposition member, the Sunday session was not attended by the economic committee head, Mostafa El Saeed, and was moderated by the second in command.
Abdel Moneim hinted that MPs affiliated with the National Democratic Party received "higher orders to attend the session and not pass the law.
"Although the session was late at night and usually no one is present in parliament, I was surprised to find that everyone attended, so I knew something was going to happen, he said.
Abdel Moneim called on President Hosni Mubarak to interfere and change this decision, as it is not in the benefit of the public and serves a certain bracket.
In mid-May, MP and Editor In Chief of Al-Osboa newspaper Mustapha Bakry submitted a complaint to the police against Ezz for monopolizing the steel industry in Egypt.
Bakry accused Ezz of four charges: owning more than 50 percent of shares in the state Dekhela steel company, controlling the steel industry in Egypt, raising the price of steel and violating anti-monopolistic laws.
Mahmoud said in a statement that the complaint also included aspects on violation of protection laws and the prevention of monopolistic practices.
"At the end of the day, the final verdict is determined by the parliament's vote and we cannot control the outcome, Yassine said.


Clic here to read the story from its source.