Vietnam: Supplementing penalties for administrative violations against regulations on competition

According to Clause 1 Article 3 of Decree No. 75/2019/ND-CP of Vietnam’s Government, the entity that commits an administrative violation against regulations on competition shall be liable to one of the following primary penalties:

- A warning; or

- A fine.

With regard to additional penalties, in comparison with former regulations of Decree No. 71/2014/ND-CP of Vietnam’s Government, Decree No. 75/2019/ND-CP supplements certain ones to enhance deterrence. Specifically, the newly supplemented additional penalties include:

- The violating entity shall have its/his/her license, practicing certificate or operations suspended for a period of 06-12 months;

- The exhibits and instrumentalities used for committing the administrative violation shall be confiscated;

- Profits illegally obtained from the administrative violation shall be confiscated;

- The enterprise registration certificate or equivalent document shall be revoked.

Besides, Decree No. 75/2019/ND-CP also amends remedial measures applied for administrative violations against regulations on competition, specifically as follows:

- Enforced public correction of information;

- Enforced removal of violating elements on the goods, goods labels, means of trading or articles;

- Enforced restructuring of the enterprise that has abused its dominant position or monopoly position;

- Enforced removal of illegal terms and conditions from business contract, agreement or transaction;

- Enforced full/partial division or transfer of partial or entire paid-in capital or assets of the enterprise that is established from the economic concentration;

- Enforced operation under a competent authority’s control over prices of goods/services or other transaction terms included in contracts concluded by transferee/acquirer enterprises or enterprises that are established from economic concentration;

- Enforced provision of sufficient information/documents;

- Enforced restoration of conditions for technical/technological development which has been obstructed by the enterprise;

- Enforced removal of terms and conditions unfavorable to customers;

- Enforced restoration of terms and conditions of contracts or contracts which have been changed or invalidated without legitimate reasons;

- Enforced restoration of original state.

The above regulations will help ensure effective handling of administrative violations against regulations on competition, address deficiencies in existing regulations, and promote a healthy competitive environment in the future.

View more details at Decree No. 75/2019/ND-CP of Vietnam’s Government, effective from December 01, 2019.

Nguyen Dat

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