The Egyptian Competition Authority (ECA) has referred five companies to the Public Prosecution for violating competition rules in contracts to supply electronic grading devices and papers to Alexandria University.
In a statement released on Tuesday, the ECA said the move came after it established that the companies had colluded and coordinated with one another in five contractual processes, in violation of Article 6(c) of Law No. 3 of 2005 on the Protection of Competition and the Prohibition of Monopolistic Practices.
In a statement on Tuesday, the ECA said it had established that the companies colluded and coordinated with one another in five contracts, in breach of the Protection of Competition and the Prohibition of Monopolistic Practices laws.
According to the ECA, the law bans agreements or contracts between competing persons in any market concerning participation in, or refraining from participating in, tenders, auctions, procurement practices and other supply offers.
The ECA said it had earlier initiated an examination of the contractual processes offered by Alexandria University. Its examination and evidence-gathering procedures found that the companies had agreed in advance which of them would win each contract.
The ECA also ordered the companies to stop immediately and completely any explicit or implicit agreement, understanding or coordination. They must also refrain from exchanging commercially sensitive information with competitors, directly or indirectly, it said.
The ECA praised the positive and productive cooperation with Alexandria University during the examination, saying it contributed to establishing the companies’ violations.
It stressed that cooperation and coordination among relevant authorities and entities are a key pillar in strengthening the ECA’s efforts to enforce competition law and enhancing the efficiency and effectiveness of its oversight role.
Such cooperation contributes to supporting efforts to combat violations, protect competition in markets and create a fair competitive environment that encourages innovation and competition, the ECA added.
The ECA said the move is part of its efforts to combat collusion among competitors in government contracts. It urged anyone involved in such anti-competitive practices to promptly report the violations and benefit from the exemption provided under the Competition Law.
According to the ECA, horizontal agreements, or cartels, are among the most serious competition offences, as they restrict competition and create barriers to entering and expanding in markets.
Their risks are greater in government procurement, as their harm extends beyond market structures and consumers to the efficiency of public spending and the public interest, the statement added.
International studies have shown that such agreements can raise government procurement prices by up to 50 percent above their actual value, harming the public budget by diverting resources that could otherwise be used for development projects, the ECA said.
Source: Ahram Online
