CAIRO: The Antitrust and Competition Protection Commission (ACPC) is currently researching the steel market to determine if companies in the sector follow anti-competitive business practices.
The move comes on the heels of a decision to report nine cement companies to the public prosecutor on charges of violating Law No. 3 of the Customer Protection and Anti-Monopoly Act passed in 2005.
The ACPC will announce their market research results of the steel sector by December.
The ACPC received on July 16 a request from Minister of Trade and Industry Rachid Mohamed Rachid to study and submit a comprehensive report on the cement and steel markets. The authority submitted the cement market results and is currently studying the steel market.
Addressing speculation that the companies in question might not receive sufficient punishment, ACPC Head Mona Yassin said that if the public prosecutor finds the companies guilty, penalties will range from a minimum fine of LE 30,000 to a maximum of LE 10 million.
The verdict will also be published and announced in three newspapers. Moreover, the head of the company will also be penalized if it is proven that he was aware of the monopolistic practices adopted by his company.
Nevertheless, many were still skeptical if a monetary penalty will solve the prevailing issue, put a stop to anti-competitive practices and stabilize market prices.
“The easiest penalty anyone can ask of cement and steel companies is to pay a fine – money is not an issue for them. There have to be strict rules that lay out the competitive structure of the market, Omar Mortada, member of the Egyptian Contractor’s Society, told Daily News Egypt.
Yassin urged those who were affected by the anti-competitive practices of cement and steel companies to submit their complaints to the ACPC headquarters or through official website www.eca.org.eg. This will enable the ACPC to get a clearer understanding of the problem and decide on “fair and just penalties.
“The initiative in itself is encouraging, but company owners must know that their money will not get them out of every problem they face, Mortada said.
