Egyptian Competition Authority Launched Criminal Action Against Clay Suppliers

On 1 June 2024, the Egyptian Competition Authority (ECA) announced that they launched criminal proceedings against 11 distributors for engaging in an anti-competitive agreement in relation to the supply clay for the ceramic and porcelain industry. 

As part of their investigation the ECA initiated a market study of the clay market in Egypt. This study found that 11 distributors colluded with a quarry in the Aswan governorate, which is the sole supplying of clay, and agreed that the Aswan would exclusive supply the members of the cartel. This allowed the distributors to inflate the price at which they sold clay to retailers. The investigation showed that the cartel led to price increases ranging from 50 percent to 180 percent. The ECA found that the actions of the cartel violated article (6)(a) of the Egyptian Competition Law.  

Considering the severity of the violation ECA’s board of directors decided to initiate criminal proceeding against the 11 distributors involved in the cartel. The ECA did not disclose which sanctions they are seeking.