In an interview with Ahram Online, Mahmoud Montaz, Chairman of the Egyptian Competition Authority (ECA), discussed the agency's key initiatives, its approach to analyzing economic concentration acts, and the role it plays in ensuring competitive neutrality between local and foreign companies.
Mahmoud Montaz emphasized that the ECA works to enhance the efficiency of the national economy and improve the business environment by removing barriers to market entry and expansion. This helps create a free competitive environment, increase market size, and boost investor confidence.
“Our ultimate goal is to ensure consumer welfare by guaranteeing access to the best goods and services at the most competitive prices, leading to national economic growth,”
he said.
Chairman of the ECA emphasized that the agency incorporates the best international practices into its operations and has developed a strategic plan for 2021-2025, aligning it with Sustainable Development Strategy (Egypt's Vision 2030). This plan focuses on four key pillars: effective law enforcement, reducing restrictive policies, promoting a competition culture, and enhancing the authority's institutional capacity.
In 2024, the ECA board of directors made decisions in 429 cases across various sectors, an increase of 14 percent from 2023. The healthcare sector accounted for the largest share, followed by education. The food sector saw a 320 percent increase compared to 2023, and the electronics and electrical appliances sector saw a 333 percent increase.
The ECA continues to monitor and combat anti-competitive practices, particularly in sectors that directly impact citizens, such as health, education, and food. The competition authority also ensures the training of its staff and encourages active participation in international and regional events to inform them of the latest competition law trends and policies.
Mahmoud Momtaz emphasized the importance of the competitive neutrality policy, which ensures that all companies in the market — whether local private companies, foreign companies, or state-owned companies — compete on equal terms under the same regulatory framework, without discrimination.
“Investors can report any legislation or decisions that may harm competition. The authority will then examine these issues and refer them to the Higher Committee for Competitive Neutrality, chaired by the prime minister, to make decisions accordingly,”
said the ECA chairman.
In the case of mergers, the authority does not differentiate between acquiring companies, whether Egyptian, foreign, state-owned, or private, as the law ensures competitive neutrality. Mergers and acquisitions are positive because they lead to successful economic activities. However, the ECA focuses on ensuring that they do not harm market economies.
“If we identify many negatives, we may address them through administrative measures. Generally, 90 to 95 percent of mergers and acquisitions are approved unconditionally; five to seven percent are approved with conditions; and two percent may be rejected,”
noted Mahmoud Momtaz.
The ECA also plays a crucial role in supporting Egypt's investment climate. Whether a small or medium-sized company is facing anti-competitive practices or a company trying to enter the market but facing barriers, the agency's role is to remove any obstacles to market entry or expansion, ensuring that the market is competitive and free.
The pre-approval system for economic concentrations aims to ease barriers to entry and expansion, create a competitive environment in various sectors, and enhance the effectiveness of the law. This, in turn, attracts foreign and local investments, diversifies the economy, encourages small and medium-sized enterprises, and boosts consumer welfare, leading to job creation and economic growth.
These efforts positively affected regional and international levels, improving Egypt's position in international reports on competition policies, stressed the ECA chairman. Recently, the UN Economic and Social Commission for Western Asia (ESCWA) report has shown that Egypt's status improved from "weak" and "moderate" to "very strong," especially in areas such as law enforcement, competitive neutrality, and merger and acquisition pre-approval.
In December 2024, a Voluntary Peer Review Report of Egypt’s Competition Law was presented in Cairo. The report highly praised the authority's efforts and development and Egypt’s steps to support competition policies and neutrality. Mahmoud Momtaz emphasized that Egypt is considered the leading country in the Arab world regarding competition protection.
Speaking about regional cooperation, the chairman of the ECA highlighted the importance of the UNCTAD Training Centre for the Middle East and North Africa (MENA) region, established in 2018. The centre trains competition protection staff in the Middle East and Africa and supports countries in their efforts to standardize competition policy concepts in the region.
Source: Ahram Online
