Alongside the Cybersecurity Law 2018, on the morning of June 12, 2018, the revised Competition Law was officially passed by the National Assembly with a 95.28% approval rate. The regulations concerning unfair competition practices, restrictions on competition, and the handling of competition violations have undergone significant changes.
Article table of contents
Amended Competition Law has been approved, comprising 10 Chapters and 118 Articles with notable changes such as:
1. Addition of new cases considered as anti-competitive agreements
To be specific: it includes cases of agreements that restrict the market for product consumption, supply sources of goods, or service provision of parties not involved in the agreement.
In addition, compared to the 2004 Competition Law, the Amended Competition Law includes provisions for other agreement acts that affect or are capable of affecting competition restriction, which can also be considered anti-competitive agreements.
2. Prohibition of state agencies from performing acts that obstruct market competition
The new law prohibits state agencies from actions that obstruct market competition, such as: Discriminating between enterprises; exploiting their authority to unlawfully interfere with competitive activities.
Simultaneously, it prohibits organizations and individuals from providing information, lobbying, calling for, coercing, or organizing enterprises to commit acts that restrict competition or engage in unfair competition.
3. Application of leniency programs for enterprises violating competition regulations
This is a completely new regulation compared to the 2004 Competition Law. Enterprises and individuals who voluntarily report and assist the National Competition Commission in detecting, investigating, and handling prohibited anti-competitive agreements are eligible for exemption or reduction of penalties according to the leniency program.
Factors for determining an enterprise's eligibility for leniency include: Order of reporting; timing of reporting; the level of honesty and the value of information and evidence provided.
4. Stipulating the maximum monetary fine for violations of unfair competition regulations at 2 billion VND
The Amended Competition Law officially comes into effect as of July 1, 2019, replacing the 2004 Competition Law.
