news

news

Economic concentration ... Between market dominance and reducing its impact

The General Authority for Competition and Antimonopoly Reveals a Legal Study for Interested Economists and the Law Details of Article 9 of the Competition Law and Prevention of Monopoly No. 7 of 2008, Economic Concentration In order to promote competition culture in the belief that the Competition Law and Antimonopoly No. 7 of 2008 is not sufficient alone without a citizen fully aware of its provisions and applications and interpretations, which avoids misunderstanding some of its texts and materials Economic concentration is defined in accordance with Article IX of the Competition Law as a total or partial transfer of ownership or usufruct of property, shares, shares or obligations of an enterprise to another enterprise which would enable an enterprise or group of institutions to directly or indirectly control an enterprise or group Other institutions. In order to complete the economic concentration process, the approval of the written competition council should be obtained if the total share (30%) of the total transactions in the market exceeds that which some legal and economic experts interpreted as allowing the market to be monopolized by four or more producers through 30% of the economic concentration. Market dominance is not forbidden but abuseundefined Use In general, "hegemony and the possession of a large market share are not prohibited by law, but abuse of hegemony according to an analytical study prepared by the Directorate of Policy and Legislation in the Commission, where the behavior impedes the competition practiced in commercial practice is prohibited and prohibited and the reduction of the economic concentration of 30% Is found in most competition laws of other countries) to 20 or 15% does not mean the elimination of monopoly is not four or five traders is a measure of this ratio and there are countries whose law includes the economic concentration rate is 40%. Reducing the negative effects of economic concentration In view of the process of economic concentration, the law does not interfere with the market share of players in the market, this is the essence of competition according to the study of the Directorate of Policies and Legislation as each trader in the market tries to get the largest share of it within the terms and rules of competition defined by the law does not prevent concentration or dominance or Controlling a high percentage of the market because it has benefits on the level of competition in the market or to abuse the dominant position in the market. And propose that the rate / 15% / maximum example instead undefined The study says that by making the economic concentration (integration) process even for those with low share of the market with a weak impact (15%), it needs the written approval of the board, which confuses the market and its work. The Commission noted that the percentage in some countries that preceded us in this field reaches 40% of the total market transactions such as Jordan, so that 7 players can control the market instead of 4. This is not the solution. The study concluded that the lesson "is not to be dominant in the market, but in the behavior you follow in your commercial practices in the market if it hinders competition or not" since the role of the Competition Authority and the prevention of monopoly not only protect the complainants or competitors, but the protection of the public interest of society Syrian conflict to be a place for legitimate competition undefined