The document strengthens the powers of the antitrust regulator and introduces new measures to address market violations.
Egypt’s Senate has given final approval to a government-backed draft law aimed at protecting competition and preventing monopolistic practices.
The legislation seeks to strengthen the powers of the Egyptian Competition Authority and provide it with more effective enforcement tools, according to a statement issued by the Ministry of Parliamentary Affairs.
The new law introduces a system of “administrative financial penalties” for corporate entities, enabling faster responses to market violations and improving both general and specific deterrence without relying solely on traditional criminal proceedings.
Minister of Parliamentary Affairs Hany Hanna described the bill as a “strategic legislative step” that reflects the state’s commitment to implementing constitutional provisions.
He noted that the law ensures the independence of regulatory bodies while maintaining a careful balance between economic freedom, investment promotion, enshrined in Article 27 of the Constitution, and the state’s duty to prevent monopolistic practices and protect market mechanisms.
According to Hanna, the legislation dedicates an entire chapter to regulating the status of Competition Authority members, ensuring their independence in carrying out oversight duties and safeguarding their professional rights.
The law also sets criteria for exemptions from the prohibition of certain agreements if they are proven to enhance economic efficiency in ways that outweigh any restrictions on competition and ultimately benefit consumers.
The minister added that the law establishes a detailed framework for mergers and acquisitions, prohibiting economic concentrations that significantly restrict competition. It also introduces a coordinated mechanism with the Financial Regulatory Authority to ensure institutional alignment, while extending the law’s jurisdiction beyond Egypt in cases where foreign practices negatively impact domestic market competition.
Hanna emphasized that the primary objective of the law is to reinforce the principles of a disciplined free market, foster a fair and transparent competitive environment, and ensure equal opportunities. This, he said, aligns with the state’s broader policies aimed at achieving sustainable development and protecting the rights of both investors and consumers.
Source: Business Today Egypt
