Egypt: Authority for the Protection of Competition and the Prohibition of Monopolistic Practices released guidelines on vertical agreements

On 30 July 2024, the Authority for the Protection of Competition and the Prohibition of Monopolistic Practices, commonly referred to as the Egyptian Competition Authority (ECA), released guidelines on Vertical Agreements. These guidelines aim to clarify the application of Article 7 of the Competition Protection Law, which prohibits agreements or contracts that restrict competition between entities in a vertical relationship, such as suppliers and distributors. The document outlines the general provisions of Article 7, the elements constituting a violation, and the types of vertical agreements that are most likely to harm competition, including resale price maintenance, restrictions on passive sales, and most-favoured-nation clauses. The guidelines also provide a framework for assessing the competitive impact of vertical agreements, considering factors such as market concentration, barriers to entry, and potential benefits to consumers.