Law Secretary would like to send to valued members an update on important new points of the Competition Law 2018 approved by the National Assembly on June 12, 2018.
Article table of contents
15. Amendments to Unfair Competition Practices
The unfair competition practices stipulated in the Competition Law 2004 are no longer considered unfair competition practices under the Competition Law 2018, including:
- Discriminatory treatment by associations;- Illegitimate multi-level marketing.
Additionally, the Competition Law 2018 adds a new case considered an unfair competition practice: “Selling goods or providing services below total cost, leading to or possibly leading to the elimination of other businesses trading in the same goods or services.”
16. Abolishment of Exemptions for Economic Concentration Practices
The Competition Law 2018 only allows exemptions for prohibited anti-competitive agreements. Exemptions for economic concentration practices stipulated in Article 19 of the Competition Law 2004 are no longer provided for in the Competition Law 2018.
17. Exemption Decision Authority Belongs to the National Competition Committee
As stipulated in Article 25 of the Competition Law 2004, the Minister of Commerce has the authority to decide on exemptions.
However, as per Article 20 of the Competition Law 2018, the National Competition Committee is the competent authority to decide on exemptions.
18. Prohibited Economic Concentration Practices Are Not Determined Based on Combined Market Share
The Competition Law 2004 identified prohibited economic concentration practices if the combined market share of the businesses involved in economic concentration exceeded 50% of the relevant market.
However, the Competition Law 2018 identifies prohibited economic concentration practices based on whether the economic concentration has or is capable of having a significant adverse effect on competition in the Vietnamese market.
19. The National Competition Committee Is the Authority for Addressing Competition Matters
The Competition Law 2004 defined two authorities responsible for managing and resolving competition issues: the Competition Management Authority and the Competition Council.
Under the Competition Law 2018, these bodies are consolidated into the National Competition Committee.
The authority of the National Competition Committee includes:
- Advising the Minister of Industry and Trade on state management functions concerning competition;- Conducting competition litigation; controlling economic concentration; deciding on exemptions for prohibited anti-competitive agreements; resolving complaints against decisions on competition cases and performing other duties as regulated by this Law and other related laws.
20. Increasing Maximum Fines for Unfair Competition Practices
The maximum fine for unfair competition practices stipulated in the Competition Law 2004 is VND 100,000,000 for individuals and VND 200,000,000 for organizations.
The Competition Law 2018 increases the maximum fine for unfair competition practices to VND 2,000,000.
