WHAT ARE THE DETAILS OF THE DRAFT DECREE ON ADMINISTRATIVE SANCTIONS FOR VIOLATIONS IN THE FIELD OF COMPETITION?

Below are the details regarding the draft Decree on administrative sanctions for violations in the field of competition. Let’s explore this with Phạm Consult!

What are the details of the draft Decree on administrative sanctions for violations in the field of competition?

The Ministry of Industry and Trade is currently seeking comments on the draft Decree regulating administrative sanctions for violations in the field of competition (hereinafter referred to as the “Draft Decree”).

The Draft Decree stipulates administrative violations regarding competition; forms and levels of sanctions; remedial measures for each violation; subjects liable to sanctions; sanctioning authority; the starting point for calculating the statute of limitations for sanctions; specific fine levels corresponding to specific titles; authority to record administrative violations; aggravating and mitigating circumstances; and the enforcement of decisions regarding violations of competition law.

Administrative violations regarding competition include:

– Violations of regulations on agreements restricting competition;

– Violations of regulations on abuse of dominant market position or abuse of monopoly position;

– Violations of regulations on economic concentration;

– Violations of regulations on unfair competition;

– Other violations of legal regulations on competition.

* See further details in the Draft Decree on administrative sanctions for violations in the field of competition.

Under what circumstances are agreements restricting product consumption markets—which are otherwise prohibited under competition law—granted a time-limited exemption?

Exemptions for prohibited agreements in restraint of competition are stipulated in Article 14 of the 2018 Competition Law as follows:

Exemptions for prohibited agreements in restraint of competition

1. Agreements in restraint of competition specified in Clauses 1, 2, 3, 7, 8, 9, 10, and 11 of Article 11—which are prohibited under Article 12 of this Law—shall be granted a time-limited exemption if they benefit consumers and meet one of the following conditions:
2. a) Promoting technical or technological progress, or improving the quality of goods or services;
3. b) Enhancing the competitiveness of Vietnamese enterprises in the international market;
4. c) Promoting the uniform application of quality standards or technical norms for product categories;
5. d) Standardizing conditions for contract performance, delivery, or payment, provided these do not relate to prices or price components.

Accordingly, agreements restricting product consumption markets—which are prohibited under competition law—shall be granted a time-limited exemption if they benefit consumers and meet one of the following conditions:

– Promoting technical or technological progress, or improving the quality of goods or services;

– Enhancing the competitiveness of Vietnamese enterprises in the international market;

– Promoting the uniform application of quality standards or technical norms for product categories;

– Standardizing conditions for contract performance, delivery, or payment, provided these do not relate to prices or price components.

What competition-related acts are strictly prohibited? Pursuant to Article 8 of the 2018 Competition Law, the following competition-related acts are prohibited:

[1] State agencies engaging in acts that hinder market competition, as follows:

– Compelling, requiring, or recommending that enterprises, agencies, organizations, or individuals produce, purchase, or sell specific goods or supply or use specific services—or transact with specific enterprises—except for goods or services subject to state monopoly or in cases of emergency as prescribed by law;

– Discriminating among enterprises;

– Compelling, requiring, or recommending that industry associations, other socio-professional organizations, or enterprises collude to restrict market competition;

– Abusing positions or powers to unlawfully interfere in competition activities.

[2] Organizations or individuals providing information, lobbying, urging, compelling, or organizing enterprises to engage in acts that restrict competition or constitute unfair competition.