Latest regulations on fines imposed on violations of competition law in Vietnam

Latest regulations on fines imposed on violations of competition law in Vietnam (Internet image)

1. Latest regulations on fines imposed on violations of competition law in Vietnam

Fines imposed on violations of competition law in Vietnam according to Article 111 of the Law on Competition 2018 is as follows:

- The maximum fine for violations of regulations on anti-competitive agreements, abuse of the dominant position on the market, abuse of the monopoly position shall be equal to 10% of the total turnover of violating enterprises on the relevant market in the fiscal year preceding the year of violation, but not less than the minimum fine imposed on violations prescribed by the Criminal Code 2015.

- The maximum fine for violations of economic concentration regulations shall be 5% of the total turnover of violating enterprises on the relevant market in the fiscal year preceding the year of violation.

- The maximum fine for violations of regulations on unfair competition shall be VND 2 billion.

- The maximum fine for other violations of the Law on Competition 2018 shall be VND 200 million.

- The maximum fines prescribed in Clauses 1, 2, 3 and 4 of Article 111 of the Law on Competition 2018 shall apply to violations committed by organizations; a violation of regulations on competition law committed by an individual shall be subject to a half of fine that imposed on an organization committing the same violation.

2. Regulations on anti-competitive agreements in Vietnam

The regulations on anti-competitive agreements in Vietnam under Article 11 of the Law on Competition 2018 are as follows:

- Agreements on directly or indirectly fixing goods or service prices.

- Agreements on distributing customers, consumption market, sources of supply of goods, provision of services.

- Agreements on limiting or controlling the quantity, volume of produced, purchased, sold goods or provided services.

- Agreements for one of more parties to the agreements to win tenders when participating in tenders for supply of goods or services.

- Agreements on preventing, restraining, disallowing other enterprises from entering the market or develop business.

- Agreements on abolishing from the market enterprises other than the parties to the agreements.

- Agreements on restricting technical or technological development and investments.

- Agreement on imposing on other enterprises conditions for signing of goods or services purchase or sale contracts or forcing other enterprises to accept obligations which have no direct connection with the subject of such contracts.

- Agreements on not trading with enterprises other than the parties to the agreements.

- Agreements on restricting consumption market, sources of supply of goods and services from enterprises other than the parties to the agreements.

- Other agreements that cause or may cause anti-competitive effects.

3. Prohibited unfair competition practices in Vietnam

Prohibited unfair competition practices in Vietnam under Article 45 of the Law on Competition 2018 include:

- Trade secret infringement in the following forms:

+ Assessing and acquiring trade secrets by going against security measures of the owner of such trade secrets;

+ Disclosing or using trade secrets without consent of the owner.

- Forcing customers or business partners of other enterprises through threatening or coercion so that they do not enter in transaction or stop transaction with such enterprises.

- Discrediting competitors through directly or indirectly providing untruthful information about such competitors which negatively impacts their goodwill, financial status or business operation.

- Disrupting competitors’ business through directly or indirectly interrupting or disrupting their legitimate business operation.

- Illegally luring customers through:

+ Providing false or misleading information to customers about the enterprise or products, services, sale promotion programs, transaction conditions related to the products or services provided by the enterprise to attract customers of competitors;

+ Comparing products, services of the enterprise with those of the same kinds of competitors without evidence to prove the comparison.

- Sale of goods and services below cost that drives or probably drives competitors out of the market.

- Other prohibited unfair competition practices prescribed in other laws.

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