OECD kpcdb

1. Scope

 

Under Article 11.1, hard core cartels are prohibited.

 

Article 11.1 provides for a prohibition of horizontal agreements by which parties: mutually agree to fix prices; divide markets by location, production, services, sales, and type of goods and purchasers; restrict service, supply, sale, shipping, transportation, market entry, investment and technical reform; and rig bids in public procurement. These are per se prohibitions.

 

Article 11.2 prohibits other types of horizontal or vertical agreements entered into between enterprises, where they are incompatible with the public interest or compose conditions for restricting competition. Such agreements are as follows: refusing to establish business relations without economic and technical grounds; restricting sales to or purchase by third parties of good; refusing jointly from significant accords and agreements; hindering competitor when competitor joining in any organisation for the purpose of conducting enterprise profitably.

2. Assessment

Hard core cartels are per se offences.

 

Regarding other agreements, the law does not provide criteria to determine whether an agreement should be prohibited nor are there any guidelines issued by the AFCCP on how it conducts its assessment of horizontal or vertical agreements.

3. Remedies and sanctions

If a cartel is detected, the AFCCP may impose fines on the companies involved.

 

In accordance with Article 27, enterprises that participate in anti-competitive agreements are subject to a fine of up to 6% of sales revenue of the previous year and confiscation of all income and property illegally earned.

 

A cease and desist order is imposed against cartels.

4. Leniency

Under Article 28 of the Competition Law there is an exemption of administrative charges if enterprises voluntarily admit to the breach of Article 11. If an enterprise admits its breach before the investigation starts, an exemption of 100% is granted; if an enterprise comes forth within 10 days after the inspection has started, an exemption of up to 50% may be applied.

 

 

* This information is based on Competition Law in Asia-Pacific: A Guide to Selected Jurisdictions (2018).