Law No. 3 of 2005
Promulgating the Law on the
Protection of Competition and the Prohibition of Monopolistic Practices
In the name of the People
The President of the Republic,
The People's Assembly has decided the following law and we hereby promulgated it:
(Article One)
This Law shall apply with regards to the protection of competition and the prohibition of monopolistic practices.
(Article Two)
The Prime Minister is the minister competent to give effect to the provisions of this Law.
(Article Three)
The Executive Regulations of this Law shall be issued by a Prime Ministerial Decree within one month, from the date of the entry into force of this Law.
(Article Four)
This Law shall be published in the Official Gazette, and shall enter into force after three months from the following day of the date of its publication.
This law shall be stamped by the seal of the State and executed as one of its laws.
Issued by the Presidency of the Republic on 6 Moharam, 1426 H.
(corresponding to 15 February, 2005)
Hosni Mubarak
The Law on the Protection of Competition and the Prohibition of Monopolistic Practices
Article 1
Economic activities shall be undertaken in a manner that does not prevent, restrict or harm the freedom of competition in accordance with the provisions of the Law.
Article 2
For the application of this Law, the following terms and phrases shall have the meanings indicated next to each of them:
Article 3
The relevant market, in the application of the provisions of this Law, is the market that consists of two elements, namely, the relevant products and the geographic area. Relevant products are products considered to be practical and objective substitutes to each other. The geographic area means a certain geographical territory where competition conditions are homogenous while taking into consideration the potential opportunities for competition, all in accordance with the criteria set out by the Executive Regulations in a manner consistent with the objectives and provisions of this Law.
Article 4
In the application of the provisions of this Law, dominance in a relevant market is the ability of a Person, holding a market share exceeding 25% of the aforementioned market, to have an effective impact on prices or on the volume of supply on it, without his competitors having the ability to limit it.
The Authority shall determine the situations of dominance according to the procedures provided for in the Executive Regulations of this Law.
Article 5
The provisions of this Law shall apply to acts committed abroad should these acts result into the prevention, restriction or harm of the freedom of competition in Egypt and which constitute crimes under this Law.
Article 6
Agreements or contracts between competing Persons in any relevant market are prohibited if they are intended to cause any of the following:
Article 7
Agreements or contracts between a Person and any of its supplier or clients are prohibited if they are intended to restrict competition.
Article 8
A Person holding a dominant position in a relevant market is prohibited from carrying out any of the following:
The Executive Regulations shall set out the conditions and procedures for implementing the provisions of this Article.
Article 9
The provisions of this Law shall not apply to public utilities managed by the State.
The Authority may, upon the request of the concerned parties, exempt some or all the acts provided for in articles 6, 7 and 8 regarding public utilities that are managed by companies subject to the Private Law where this is in the public interest or for attaining benefits to the consumers that exceed the effects of restricting the freedom of competition. This shall be done in accordance with the regulations and procedures set out by the Executive Regulation of this Law.
Article 10
The Cabinet of Ministers may, after taking the opinion of the Authority, issue a decree determining the selling price for one or more essential products for a specific period of time.
Any agreement concluded by the Government for the purposes of the implementation of these prices shall not be considered an anti-competitive practice.
Article 11
There shall be established an authority called “The Authority for the Protection of Competition and the Prohibition of Monopolistic Practices”. The Authority shall be located in Cairo and shall have the public juristic personality. The Authority shall be affiliated to the Competent Minister and shall have, in particular, the following powers:
The Executive Regulations of this Law shall specify the notification date and data, documents attached thereto and procedures of its submission.
The Executive Regulations of this Law shall determine the procedures to be followed by the Authority to investigate and prove acts that are deemed violation of the provisions of this Law.
Article 12
The Authority shall be managed by a Board of Directors the composition of which shall be formulated by virtue of a decree of the Competent Minister as follows:
The Board shall be appointed for four years which may be renewed for another term.
The Decree on the formation of the Board of Directors shall contain the remuneration of the Chairperson and Board Members.
Article 13
The Board shall convene upon an invitation of its Chairperson at least once every month and whenever the necessity so requires. The meetings of the Board shall be valid with a quorum of ten members and the resolutions shall be passed with the majority of votes of its members.
A Board member shall not be eligible to take part in the deliberations or voting with regard to a case under the consideration of the Board, if he/she has an interest in it, or if he/she is a relative to any of the parties up to the fourth degree, or if such member currently represents or has represented any of the parties.
The Board may invite to its meetings specialists it wishes to seek their assistance. Such specialists shall not have a counted vote.
The Executive Regulations shall specify the competences of the Board in accordance with the provisions of this Law and the procedures for the invitation to its meetings and its operational rules.
Article 14
The Authority shall have an independent budget following the model of Public Service Authorities. Any surplus in the budget shall be forwarded from one fiscal year to another. The resources of the Authority consist of the following: