- Can an Exemption from Competition Law Provisions be Obtained?

Yes, the Law allows establishments to request an exemption from some provisions (specifically Articles 5, 6, 7 related to prohibited practices and dominant position), if the practice will achieve general economic benefits outweighing the damages of limiting competition.

Conditions for Exemption Approval

According to Article Twenty-Six, the Board may approve the exemption if one of the following conditions is met:

1. That it leads to improving market performance or establishments (quality, variety, technical development).
2. That it achieves a benefit for the consumer outweighing the effects of limiting competition.
3. That it does not give the establishment an opportunity to completely exclude competitors from the market.

Requirements for Submitting an Exemption Request

To submit a complete request (Article 27), the following must be provided:

• Establishment data and activity.
• Accurate description of the practice and relevant goods.
• Justifications: Explaining the expected positive results and supporting documents.

Application Study and Decision Procedures

1. Technical Committee: The Board forms a committee to study the request, which may hold hearings with relevant parties.
2. Public Consultation: The Authority may publish a summary of the request to poll public and government agency opinions.
3. Decision: The Board issues its decision (approval, conditional approval, or rejection) within the specified period.

Exemption Duration and Revocation

• The decision specifies a validity period for the exemption.
• The Board may extend the exemption based on a justified request.
• The Board may revoke (cancel) the exemption in cases, including:
  • Establishment's breach of obligations.
  • Change in market conditions.
  • Emergence of negative effects outweighing benefits.

Reference: Implementing Regulations of the Competition Law (Articles 26-31) - General Authority for Competition