In the market economy, the freedom to do business is one of the basic and important legal principles; requires businesses to obey the law of supply and demand, the law of competition. Accordingly, businesses have removed all constraints and obstacles to freely conduct business and freely seek profits in the market. But it is also from the goal of finding profit, which is a vital goal that businesses always have to think of business methods to have an advantage in the market and maintain profits and development. One of the simple but highly effective ways for businesses is to abuse the freedom of business to limit the ability of potential competitors to enter the market, seek to eliminate some certain competitors in the marketplace, or to limit or eliminate competition among competitors by entering into agreements between competitors.

According to the provisions of Clause 4, Article 3 of the Competition Law: “Agreement to restrict competition is an act of agreement between parties in any form that causes or is likely to cause anti-competitive effects”. However, according to the provisions of Article 12 of the 2018 Competition Law, not all anti-competitive agreements are strictly prohibited without exemption, without exception, only applicable to types of agreements on competition law. prohibit, restrain, not allow potential competitors to enter the market, not develop, expand production and business; agreement to eliminate enterprises that are not members of the agreement or agree for one or both parties to win bids in the provision of goods or services.

Arcording to Article 12 of the Competition Law 2018, Prohibited anti-competitive agreements including:

Enterprises on the same relevant market are prohibited from entering anti-competitive agreements prescribed in Clauses 1, 2, and 3 Article 11 of this Law.

• 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.

Enterprises are prohibited from entering anti-competitive agreements prescribed in Clauses 4, 5 and 6 Article 11 of this Law.

• 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.

Enterprises on the same relevant market are prohibited from entering anti-competitive agreements prescribed in Clauses 7, 8, 9, 10 and 11 Article 11 of this Law if such agreements cause or may cause substantial anti-competitive effects on the market.

• 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.

Enterprises doing business in different steps of the same production, distribution, supply chain for specific kinds of goods, services are prohibited from entering anti-competitive agreements prescribed in Clauses 1, 2, 3, 7, 8, 9, 10 and 11 Article 11 of this Law if such agreements cause or may cause substantial anti-competitive effects on the market.

• 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 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.

Above is our consultancy about this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nguyen Duc Trong via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: info@hongbanglawfirm.com hoặc lienheluathongbang@gmail.com

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