Proposed Amendments To The Egyptian Competition Law
Article from Matouk Bassiouny
On 13 January 2026, the Government, in coordination with the Egyptian Competition Authority (“ECA”), submitted draft amendments to the Egyptian Competition Law (“ECL” and “Draft”) introducing one of the most significant regulatory overhauls since the enactment of the ECL. The main highlights are summarized below.
The First Highlight: Imposition of Administrative Financial Penalties The Draft empowers the ECA to impose administrative financial penalties directly on companies, without awaiting court judgments. Fines for core violations (i.e., cartels, vertical restraints, and abuse of dominance) may reach 2% to 15% of relevant revenues, or up to EGP 2 billion.
The Second Highlight: Introduction of New Fines and Aggravating Existing Ones The Draft increases the criminal exposure of natural persons involved in infringements of the ECL, for example by penalizing the failure to appear before the ECA, and the failure to comply with the Cabinet’s pricing decrees. Furthermore, fines are aggravated for violations pertaining to cartels, vertical restraints, and abuse of dominance, among other violations.
The Third Highlight: Broader Scope of Prohibited Conduct The Draft captures formal agreements as well as concerted practices and coordinated behavior, significantly widening the reach of enforcement. Further, resale price maintenance is now expressly prohibited under the ambit of vertical restraints and abuse of dominance.
The Fourth Highlight: Introduction of a Presumption of Dominance Market dominance is presumed at 50% market share of any relevant market, unless market power is negated by the relevant undertaking.
The Fifth Highlight: Wider Leniency Program and Fast-Track Enforcement The Draft expands the scope of the leniency regime for cartels and introduces the same regarding vertical restraints, while introducing safeguards for whistleblowers. It further establishes a grievance committee from ECA’s decisions, which are to be immediately enforceable, unless otherwise ordered by the competent court.
The Sixth Highlight: Wider Institutional Independence The Draft emphasizes on ECA’s autonomy as an enforcement and sanctioning authority and shifts its subordination from the Cabinet to the President directly.
The Draft’s Relevance for Businesses? If enacted, these reforms will significantly increase enforcement risk, financial exposure, and compliance expectations for undertakings making business in Egypt. Businesses should proactively monitor legislative developments closely to manage their regulatory risks.
