(Not official translation
- legal text is in Arabic)
Republic Decree Act No. (19) for the year
1999 pertaining to competition promotion, monopoly, and commercial deception prevention
The President of the Republic, Having reviewed the Constitution of the Republic
of Yemen; Supply Act No. (24) for the year 1990, and its amendments; Republic Decree
No. (72) for the year 1998 , forming the government and naming its members; The
Prime Minister's presentation; and The Council of Ministers’ approval: it has been
decreed the following:
Article (1): This Act to
be named (competition promotion, monopoly, and commercial deception prevention Act).
Article (2): For this Act's
application purposes, the following words and expressions mentioned below would
indicate the meanings in front of each of them, unless another meaning is provided
in the context of the text: The Republic: Republic of Yemen. The Ministry:Ministry
of Supply and Trade. The Minister: Minister of Supply and Trade. The Internal Regulation:
The executing regulations for this Act. The Organization: The Competition Protection
and Monopoly Prevention Organization. The Establishment: Any natural or judicial
legalentityperforming commercial activity. Monopoly: The circulation of goods in
a way that prevents competition. Concentration: Concentrating procurement from one
source or one agency or one company.
Article (3): Circulation
of different commodities and goods would be in a free competitive trade framework,
in accordance with this Act's provisions, and so that no consumers' interests are
harmed or commercial monopolies are created.
Article (4): (a) The
following are excepted from this Act's provisions' application: 1. Activity of commercial
companies contracted with the Government through valid privilege agreements. 2.
Temporary prosecutors decreed by the Council of Ministers in order to confront an
exceptional necessity in a particular sector, or an emergency, or a natural calamity,
however, a review of such measures has to take place within a period not exceeding
six months and can be extended for another period based on the Minister's presentation.
(b) Provisions of this act, shall not apply to state monopolized establishments,
to agencies and foreign commodities licensed to be produced locally by the principal
producer, and shall not apply to the Agencies Act. (c) The application of this Act,
shall not lead to restrictions on the rights that decided by intellectual property
rights, trade mark's protection, inventions' patents rights, and publishing rights,
however, its provisions shall apply whenever the use of such rights leads to harmful
effects on competition and freedom of trade.
Article (5): Goods and services’
prices are determined, in its respective markets, on the basis of free competition
which governed by market factors.
Article (6): It is not permitted
to enter into any contract, written agreement, or the establishment of a union to
monopolize the importation, production, distribution, selling, or procurement of
any commodity or material that enters in its production or manufacturing so that
to conceal or restrict its circulation and reduce its production or fix its price
in a way that prevents freedom of trade.
Article (7): Any agreement
or arrangement between competing establishments shall be considered a violation,
if that agreement or arrangement led to prevention, reduction, or weaken competition;
or aimed at achieving any of the following results, whether that agreement or arrangement
was in writing or through practice: 1. Fix prices or discounts. 2. Fix production
quantities. 3. Division of the market on geographical territories or sales and procurement
levels or according to the type of good, service, client, or by any other manner
4. Attempt to or prevent the entrance of other establishments as sellers or buyers
in the market 5. Deal or refusing to deal with particular buyers. 6. Conspire in
biding or tendering, however, joint-offers are not considered as such 7. Include
provisions in tenders' conditions, that name the intended procured commodity's mark
or brand name.
Article (8): (a) It is prohibited
to act in a way that might lead to reduce or weaken the competition, introduce obstacles
which prevent the entrance of competitive establishments into the market, the expansion
of existing establishments, or exit competitive establishments from the market.
(b) The following behaviors are considered infringement, if used by an establishment
exploiting its predominance and monopoly and led to the results indicated in (a)
of this article: 1- Offer a good or a service at a price less than its cost. 2-
Non-equality in prices, terms, or duration in procurement or sale contracts of similar
goods or services. 3- Fix the re-sale prices of goods and services. 4- Refusal to
sell to a particular client or buyer. 5- Control on a particular client by an establishment
so that to prevent another competing establishment from dealing with that client
or deprive another client from dealing with such establishment. 6-Action to monopolize
scarce potentials and resources, required for another competitor's activity. 7-
Procure, store, or destroy goods so that to increase prices or prevent its reduction.
8- Apply production specifications not suitable for use with goods and services
produced by competing establishment. 9- Oblige or motivate an establishment to sell
a good or a service to particular clients, according to certain priorities, or prevent
the sale to a competing establishment. 10- Refuse to deal with a client, in accordance
with customary commercial terms. 11- Link the sale or delivery of a certain good
or service with buying another good or service from the same establishment.
Article (9) Concentration
is prohibited if led to or shall lead to restrain or weaken competition.
Article (10): A "Competition
Protection and Monopoly Prevention Organization" to be established within the Ministry,
aiming at exposing monopoly cases, vertical integration, and horizontal concentration,
or concealing any good or material necessary for production or manufacturing another
good in the local market, at the time of its sale, offer, or pricing in any manner
that would constrain free competition, furthermore, the Organization is to establish
the necessary policies and procedures to protect and support competition.
Article (11): The Organization,
mentioned in article (10) of this Republican Decree Act, will be chaired by the
Minister, who will issue a decision forming its membership.
Article (12): The Internal
Regulation, issued by the Minister, will determine the specialization of the Organization.
Article (13): Any establishment
or group of establishments, within a particular activity, should inform the Organization
on any data determined by the Internal Regulation and the Organization must decide
whether such activity is in conformity with this Act's provisions.
Article (14): All buyers
who exclusively buy a particular good or goods must notify the Organization on data
determined by the Internal Regulation.
Article (15): All importers
who exclusively import a particular good must notify the Organization on data determined
by the Internal Regulation.
Article (16): No establishment
is allowed to decline the authorized Organization's staff from acquainting themselves
with data necessary for research purposes, in accordance with this Act’s provisions;
in all cases, each establishment has to provide the Organization with requested
data ,as determined by the Internal Regulation.
Article (17): Anyone who
is by means of his/her position, specialization, or job having concern in researching
monopoly and concentration cases, stipulated in this Act, must oblige not to reveal
the business' secrets, it is also not allowed for any Organization staff to provide
any data or acquaint others with any data except in legally permitted cases.
Article (18): Owners of factories
and their management are prohibited from limiting their products distribution, which
would lead to monopoly, distribution shortages, or fabricated price increases.
Article (19): Organization
staff within the Ministry would cooperate with the General Authority for Standardization'
staff in determining the deceptive goods, commercial deception cases, as well as
taking the legal measures in accordance with the Laws.
Article (20): Importers and
producers' unions, societies, and their alike, are prohibited to exceed their by-laws
specified goals, and come into agreement on prices' fixing or specifications manipulation;
the said entities have to notify the Organization with requested data.
Article (21): The Minister
may take -based on the recommendation of the Organization- one of the following
arrangements towards those who exclusively import, or procure a particular good
and exploit the same in prices' manipulation or in quantity reduction: 1-
Agreement on well disposed solution. 2. Limit carrying out the behavior totally,
partly, or for specific period of time. 3. Make the behavior totally void. 4. Instructing
conditions’ correction within a specific period of time, otherwise, legal measures
to be taken against the establishment.
Article (22): With reference
to effective acts, anyone who infringe this Act’s provisions shall be punished with
a fine not less than (YR10,000) ten thousand Yemeni Rial and not exceeding (YR100,000)
one hundred thousands Yemeni Rials, or the equivalent of what has been gained as
result of monopoly, or by either penalty, however, in case of repetition imprisonment
will be compulsory, as decided by jurisdiction; and in all cases, infringement contracts
and agreements shall be judged as null and void and the judgment to be publishing
in two daily newspapers on the expense of the infringed, the court have the right
to cancel the infringed name form the trade registration, or importers’ registration,
or agents registration, or commercial brokers, as conditions may dictate.
Article (23): Infringements,
included in this Act, shall be Presented to the Attorney General’s office, as decided
by the Minister based on a recommendation by the Organization, however, a subpoena
has to be initiated by the Minister.
Article (24): The Internal
Regulation for this Act to be issued by the adecision from the Prime Minister, based
on the Minister’s presentation.
Article (25): This Republican
Decree Act shall be effective from the date of its issuance and to be published
in the official Gazette.
Issued at the Presidency
Palace in Sana’a Dated: 30 Ramadan 1419 H Corresponding to: 17 January 199
Dr. Abdulkareem Al-Aryani Ali Abdallah
Saleh
Prime Minister
The President