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Modernization of Competition Law and Policy in Egypt: Past, Present and Future

Published online by Cambridge University Press:  09 January 2020

Dong-Hwan Kim  and
Yo Sop Choi
Dong-Hwan Kim*
Affiliation:
Hankuk University of Foreign Studies
Yo Sop Choi*
Affiliation:
Hankuk University of Foreign Studies
*
hamidkim@hufs.ac.kr
yosopchoi@hufs.ac.kr
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Abstract

Competition laws and policies play an important role in developing countries. More than 130 countries have adopted either a competition law or a similar framework of anti-monopoly laws that aims to improve social welfare. Most African countries have already started developing their competition regimes, and regional trade organizations in Africa have provided competition sections in their free trade agreements to enhance enforcement cooperation. For fledgling competition regimes in Africa, the improvement of effective public enforcement and competition law culture has become an essential driver of competition law development. In particular, Egypt has demonstrated its efforts towards the modernization of competition law and the enhancement of fair and free competition, which is an example of the development of the competition regime in a developing African country. This article discusses the development of the Egyptian competition regime from a comparative perspective and suggests proposals for its further modernization.

Keywords

Egyptcompetition law and policymodernizationconvergenceeconomic democracy
Type
Research Article
Information
Journal of African Law , Volume 64 , Issue 1 , February 2020 , pp. 107 - 125
Copyright
Copyright © SOAS, University of London 2020

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Footnotes

*

Assistant professor, Department of Arabic, Hankuk University of Foreign Studies, South Korea.

**

Associate professor of law, Graduate School of International and Area Studies, Hankuk University of Foreign Studies, South Korea.

This work was supported by the Hankuk University of Foreign Studies Research Fund.

References

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27 For example, Dabbah Competition Law and Policy, above at note 17 at 6.

28 Id at 21–22.

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34 Law No 3, above at note 16.

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36 Ibid.

37 Id at 6–7.

38 Id at 6 and 9.

39 Id at 10.

40 Art 5 of the Act articulates its extraterritorial application to undertakings whose acts result in “the prevention, restriction, [of] or harm [to] the freedom of competition” in the Egyptian market, which constitutes a crime under the Act.

41 ECA “General policy”, above at note 35 at 9–12.

42 Id at 14.

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47 Dabbah Competition Law and Policy, above at note 17 at 237–38.

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50 A vertical agreement that impedes competition is often considered to be a hardcore restriction with regard to trade between countries because it forecloses the market.

51 KH Attia “Developing effective relations with public prosecutors: The case of Egypt” The ICN Workshop, available at: <http://old.internationalcompetitionnetwork.org/uploads/library/doc716.pdf> (last accessed 27 November 2019).

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55 For further detail about the ECA's decision on beIN and CNE in 2017, see E Solyman “Egyptian Competition Authority watchdog says beIN Sports agreement with CNE legally invalid” (12 July 2017) Daily News Egypt, available at: <https://wwww.dailynewssegypt.com/2017/07/12/egyptian-competition-authority-watchdog-says-bein-sports-agreement-cne-legally-invalid/> (last accessed 27 November 2019). A number of court decisions relating to beIN Sports were made, including decisions of the Economic Criminal Court of Appeal in Cairo nos 2017-280 and 2017-1507. For further discussion of the trend towards regional cooperation regarding competition enforcement, see Fox “World competition law”, above at note 53 at 237.

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57 The full text is available at: <http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12008E101:EN:HTML> (last accessed 17 November 2019). The influence of the substantive EU provisions on free trade agreements in Asia is evident. See also Choi “Convergence of competition laws”, above at note 11 at 25–27.

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63 See ECA decisions (in Arabic), available at: <http://www.eca.org.eg/ECA/upload/Publication/Attachment_E/122/عرض%20التقرير.pdf>, <http://www.eca.org.eg/ECA/upload/Publication/Attachment_E/123/عرض%20التقرير.pdf>, <http://www.eca.org.eg/ECA/upload/Publication/Attachment_A/113/عرض%20التقرير.pdf> and <http://www.eca.org.eg/ECA/upload/Publication/Attachment_A/114/عرض%20التقرير.pdf> (all last accessed 28 November 2019).

64 Ibid.

65 See “Decision on Telecom Egypt” (ECA press release, in Arabic), available at: <http://www.eca.org.eg/ECA/upload/Publication/Attachment_E/123/عرض%20التقرير.pdf> (last accessed 28 November 2019).

66 For example, case 85/76, Hoffman-La Roche v Commission, ECLI:EU:1979:36.

67 See ECA “2017 annual report” (in Arabic) at 13–15, available at: <http://www.eca.org.eg/ECA/upload/Announcement/Attachment_A/86/Annual%20Report%202017-Final.pdf>  (last accessed 28 November 2019).

68 Case nos 2017-280 and 2017-1507, above at note 55.

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70 El Far and Momtaz “Egyptian competition enforcement”, above note at 56 at 588–89.

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73 Competition cases in Korea, China and Japan are often mentioned as useful citations. See, for example, Muddida et al “Kenya's new competition policy regime”, above at note 44. Vigorous enforcement can be supported by improving the competition culture. See also Choi “The choice of competition law”, above at note 14 at 146–49.

74 Furse Antitrust Law, above at note 48 at 259. Korean competition law includes a unique provision regarding unfair business practices that covers all types of commercial acts, the so-called catch-all provision.

75 See, for example, Kim, D-H “Classification of Islamic unfair transactions upon the view of modern competition law in South Korea” (2018) 22 Arabic Language & Literature 121Google Scholar; Kim “The meaning of fair trade law”, above at note 31.

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78 For example, the Korean Competition Act provides a presumption of market dominance when an undertaking's market share exceeds 50%, or when the total market share of three undertakings is above 75%. The Chinese Competition Act also provides a similar framework. For further detail, see Harris, HS et al. Anti-Monopoly Law and Practice in China (2011, Oxford University Press) at 96Google Scholar.

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85 Id “The Egyptian state of competition”, above at note 80 at 44 and following. Even before the adoption of Egyptian competition law, several governmental decisions were taken to prohibit the abusive practices of monopolists within the steel industry; see Selim, TH “Monopoly: The case of Egyptian steel” (2006) 2/3Journal of Business Case Studies 85CrossRefGoogle Scholar.

86 “COMESA Competition Commission”, above at note 24.

87 There were critical issues surrounding the ECA's independence and its powers relating to sanctions. See, for example, Waked “Law, society and the market”, above at note 15 at 13.

88 There has been external pressure by the US in pursuit of a democratization agenda in Islamic countries. See, for example, Dabbah Competition Law and Policy, above at note 17 at 237.

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90 Dabbah Competition Law and Policy, above at note 17 at 24.

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