{"id":576524,"date":"2020-11-29T03:59:50","date_gmt":"2020-11-29T03:59:50","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/11\/29\/competition-watchdog-could-be-getting-sharper-teeth\/"},"modified":"2020-11-29T03:59:50","modified_gmt":"2020-11-29T03:59:50","slug":"competition-watchdog-could-be-getting-sharper-teeth","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/11\/29\/competition-watchdog-could-be-getting-sharper-teeth\/","title":{"rendered":"Competition watchdog could be getting sharper teeth"},"content":{"rendered":"

<\/a> A handful of legislative changes on antitrust, civil society, and investment <\/strong>received nods<\/strong> from the Madbouly cabinet during the weekly meeting last Wednesday:<\/p>\n

Changes to the Antitrust Act would require companies to seek the Egyptian Competition Authority\u2019s (ECA) approval before finalizing mergers and acquisitions<\/strong> that could have an impact on competitiveness in any given industry, cabinet said in a statement<\/a>. The changes would define same-sector M&As that threaten competition as agreements that establish or reinforce market dominance or \u201cfacilitate committing any violations stated in the law,\u201d cabinet said.<\/p>\n

What to watch for: <\/strong>The changes give the ECA more discretion over what it considers to be threats to competition, affording it the right to allow certain M&As that could save ailing companies or benefit the economy more than they hurt competition.<\/p>\n

What exactly is new here? <\/strong>The 2005 Antitrust Act<\/a> was designed to allow the authority to probe existing monopolies or anti-competitive practices and only gives the ECA the power to ask questions about an M&A after it is completed. The amendments would give the watchdog legal powers to probe M&As in advance and will also formally define \u201cconcentration,\u201d which isn\u2019t explicitly stated in the current version<\/a>.<\/p>\n

The ECA has wanted this for a long time<\/strong>, having demanded that Uber<\/a>to seek pre-approval<\/a> before buying MENA rival Careem and attempting to block or investigate several transactions ahead of their completion (here<\/a>, here<\/a>, and here<\/a>).<\/p>\n

CABINET ALSO SIGNED OFF ON\u2026<\/strong> Investors in Egypt\u2019s new administrative capital are in line for fresh incentives <\/strong>under changes to the executive regulations of the 2017 Investment Act<\/strong>, cabinet said. The statement gave no specifics, noting only that the incentives will be similar to those recently outlined<\/a> for prospective Suez Canal Economic Zone (SCZone) projects, which include a mixture of non-tax incentives and customs breaks.<\/p>\n

Executive regulations for the recently-ratified NGOs Act also got the green light.<\/strong> They have been pending a final review since February<\/a>, after having previously expected<\/a> to be released at the end last year. The bill<\/a>, which was ratified in August of last year, replaces the controversial Law No. 70 of 2017 that generated criticism in Egypt and abroad for its curtailing of civil society.<\/p>\n

Also approved by cabinet last week:<\/strong><\/p>\n