Hardcore Cartels Within The Scope of The Egyptian Competition Law (The Cement Case) Bradford University, U. K January 2010 Rostom Omar. The Egyptian Competition Law addresses three types of anticompetitive practices: Horizontal Agreements (Art. 6) Vertical Agreements (Art. 7)
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1-Agreement or contract:verbal or written (Article 10 of the Ex. Reg.)
2-Between competitors: persons who have the ability to carry out the same activity in the relevant market at the present time or in the future (Article 9 of the Ex. Reg.)
3- Inthe relevant market: relevant product + geographical area
4- Exhaustive list of prohibited agreements or contracts: price fixing – market allocation – bid rigging or collusive tendering – limiting production or services.
Dividing product markets or allocating them on grounds of:
The Cement Case anticompetitive practices:
allocating a specific market share for each company regarding local sales depending on the available production capacities for each company at that time and raising prices. Just after the meeting the average price has increased and prices have been increasing ever since.
The Companies export shares are very different from a year to another among different companies. This shows that there is no agreement to limit the marketing of the cement abroad and the agreement is valid only in the local market.
The increase in the production capacities utilization of the companies from a year to the other did not reflect on the structure of the companies’ market shares of local sales, which are stable as they were since 2003 agreement.