Egyptian Competition Authority Reports Violation Against Egyptian Telecommunication Company For Abuse Of Dominant Position – Antitrust, EU Competition

On March 9, 2024, the Egyptian Competition Authority (ECA)
announced that it registered a violation against one of Egypt’s
telecommunications companies for abusing its dominant position and
forcing its customers to contract “fixed internet”
service in exchange for obtaining “landline phone”
service. This action is in breach of the Law on Protecting
Competition and Preventing Monopolistic Practices No. 3 of 2005 (of
the Egyptian Competition Law). This violation came as a result of
numerous complaints and reports from citizens across Egypt’s
governorates citing the refusal of customer service employees at
sales outlets to provide landline phones without fixed internet. In
case of refusal by the customers, the delivery of services by the
company is delayed which ultimately forces the customers to accept
both services. The credibility and authenticity of said reports has
been proved by the ECA, which has accordingly obliged the said
company to suspend any acts which lead to linking fixed internet
services to landline telephone services.

It is worth noting that the Egyptian Competition Law prohibits
any company who has control over a relevant market from
conditioning the conclusion of a contract or agreement for a
product on the condition of accepting obligations or products that,
by their nature or by virtue of their commercial use, are not
related to the product that is the subject of the original
agreement, contract, or transaction. The said telecommunication
company violation arises out of this law. Noting this, a person is
deemed to have control over a market subject to satisfying certain
conditions as set out under the Egyptian Competition Law, for
having a market share of more that twenty- five percent (25%) and
has an effective impact on prices or the volume of supply therein
without being restricted by its competitors. The ECA is required by
virtue of the Egyptian Competition Law to burden the violator to
amend and remove the violation or take corrective measures
immediately or within a period determined by the ECA, otherwise,
the violating agreement or contract shall be deemed invalid. The
ECA’s board of directors may, by a majority of its members,
issue a decision to stop practices that appear from the apparent
evidence under its control to violate the Egyptian Competition Law,
abuse of dominant position, for a specific period of time if these
practices result in serious irreversible harm to competition or the
consumer, without prejudice to any liability arising out of said
violation, which includes financial penalties incurred by the
violator.

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