Cambodia’s much-anticipated Competition Law (“Law”) was signed into law by the King on 5 October 2021.

The purposes of this law are to encourage fair business relations, promote economic efficiency and the establishment of new businesses, protect the national economy from harmful anti-competitive behavior; and assist consumers to obtain goods and services of higher quality at lower prices and with greater variety and greater choice.

UNLAWFUL ACTIVITIES WHICH PREVENT, RESTRICT OR DISTORT COMPETITION

Agreements which prevent, restrict or distort competition

Persons are prohibited from making and implementing a Horizontal Agreement that directly or indirectly affects competition by:

1. Fixing, controlling or maintaining the price of goods or services;
2. Preventing, restricting or limiting:

• the quantity of goods or services which are made available for sale;
• the type of goods or services which are made available for sale;
• the development of new goods or services;

3. Allocating geographic areas between Competitors;
4. Allocating customers between Competitors; or
5. Favouring one bidder in bids for a contract.

Persons are prohibited from making and implementing a Vertical Agreement which directly or indirectly requires a purchaser to resell purchased goods or services at a minimum price set by the seller or which requires a purchaser to accept any conditions of this kind set by the seller.

Persons are prohibited from making and implementing a Vertical Agreement which has or could have the object or effect of significantly preventing, restricting or distorting competition in a Market by:

1. Requiring a purchaser to resell purchased goods or services only within a defined geographic area;
2. Requiring a purchaser to resell purchased goods or services only to specified customers or specified categories of customers;
3. Requiring a purchaser to purchase all or nearly all of its requirements for particular goods or services exclusively from the seller;
4. Preventing a seller from selling goods or services to another purchaser; or
5. Requiring a purchaser to purchase unrelated goods or services in addition to the goods and services that the purchaser wants to purchase.

Abuse of a Dominant Position in a Market

            The activities listed below shall be unlawful if undertaken by a Person or Persons with a Dominant Position in a Market and such activities have the object or effect of significantly preventing, restricting or distorting competition in a Market:

1. Requiring or inducing a supplier or customer not to deal with a Competitor;
2. Refusing to supply goods or services to a Competitor;
3. Selling goods or services on the condition that the purchaser purchases separate goods or services unrelated to the object of the contract;
4. Selling goods or services below the cost of production; or
5. Refusing to give a Competitor or potential Competitor access to an Essential Facility.

Business combination

Any Business Combination which has or may have the effect of significantly preventing, restricting or distorting competition in a Market shall be unlawful.

Exemptions

            Any Agreement or activity (agreements which prevent, restrict or distort competition, abuse of a dominant position in a market, business combination) may be exempted, if the Agreement or activity fulfils the following requirements:

1. There are significant identifiable technological, economic or social benefits directly arising from the Agreement or activity which would not have arisen without the Agreement or activity having the effect of significantly preventing, restricting or distorting competition;
2. The technological, economic or social benefits arising from the Agreement or activity outweigh the anticompetitive effects of the Agreement or activity significantly preventing, restricting or distorting competition; and
3. The Agreement or activity would not eliminate competition in any substantial part of a Market for goods or services.

Penalties

Persons who violate agreements which prevent, restrict or distort competition, abuse of a dominant position in a market, business combination shall be subject to a written warning and a fine imposed by the Competition Commission of Cambodia of 3% to 10% of the total turnover of the person obtained during the period when the violation occurred and not more than 3 (three) years.

In case of receiving a written warning and a fine once and continue to commit the offense as the first paragraph of this article shall be suspended, revoked or removed the certificate of business registration, license or license. Service business.