New regulation on the imposition of administrative penalties under the scope of competitive law (part 1)

October 8th, 2019|

The Decree recently dated 26th of September, 2019, no. 75/2019/ND-CP (“Decree 75”) regulating the imposition of penalties for violations against law on competition, will enter into effect on 1st of December, 2019.

1. Violations against law on competition under the new Decree:

Comparing to Decree no. 71/2014/ND-CP (“Decree 71”) guiding on Law on completion on imposition of penalties for violations against current law on competition, Decree 75 specifies the violations against law on competition, which will bear administrative penalties. The aforementioned include:

  • Violations against regulation on competition restraint agreement;
  • Violations against regulation on abuse of dominant position, monopolization;
  • Violations against regulation on market concentration;
  • Violations against regulation on unfair competition;
  • Other violations against law on competition relating to: (i) providing information and documents; (ii) investigation and handling of competition cases; (iii) competition restraint agreement before Decision on exemption issued by competent authorities; (iv) providing information, encouraging, urging, coercing or arranging for enterprises to perform acts of restricting competition and unfair competition.

2. Supplement some remedial measures:

Other than the retaining of regulation of Decree 71 relating to remedial measures include:

  • The rectification must be published;
  • The enterprise abusing firms’ dominant market positions must be re-structured;
  • The illegal clauses must be removed from the agreement;
  • The acquirer or consolidated enterprise must be separated; the contributed capital must be resold;
  • The conditions for the development of technology that are prevented by the enterprise must be restored;
  • The disadvantages to the customers must be deleted;
  • The contract, contract provisions that are changed, rescinded without legitimate reasons must be restored;

The new decree supplemented some remedial measures as follows:

  • Forcible removal of infringing elements recorded on goods, goods packages, business facilities, and products;
  • Being subject to the control of competent state agencies on purchase and sale prices of goods or services or other transaction conditions in contracts of merging enterprises, acquiring enterprises or new enterprises formed upon economic concentration;
  • Forced to provide all information and documents;
  • Restoration of status quo.

Enterprise should notice these provisions to avoid the needless consumption of time and expenses to remedy the violations as regulated above.