Which are acts considered to be violation activities in competition domain and subjects of application?

On September 30, 2005, the Vietnamese Government issued Decree No. 120/2005/ND-CP on dealing violation of the Law on Competition. Accordingly, the following acts shall be considered to be violated in competition domain:

 

-   Acts violating provisions on competition restriction agreement, including agreements on directly or indirectly fixing product or service prices; agreements on sharing of outlets, sources of supply of products, provision services; agreements on restriction or control of produced, purchased or sold quantities or volumes of products or services; agreements on restriction of technical and technological developments, restriction of investments; agreements on imposition on other enterprises of conditions for signing products or services purchase or sale contracts or on forcing of other enterprises to accept obligations not directly connected with the object of such contracts; agreements on prevention, restraint or prohibition of other enterprises from entering the market or developing business; agreements on elimination from the market of enterprises not being parties to the agreements and collusion to help one or all of the parties to an agreement to win bids for supply of products or provision of services.

 

-   Acts violating provisions on abuse of dominant market position, abuse of monopoly position and economic concentrations, including sale of products, provision of services below total costs of production in order to eliminate competitors; imposition of irrational purchase prices, sale prices of products or services or fixing of minimum re-sale prices causing damage to customers; restriction of production, distribution of products, services, limitation of markets, obstruction of technical and technological developments, causing damage to customers; imposition of different trading conditions under similar transaction conditions in order to create unfair competition; imposition of conditions on other enterprises to sign contracts for purchase or sale of products or services or forcing of other enterprises to accept obligations not directly related to the objects of contracts; prohibition of new competitors from entering the market and abuse of monopoly position.

 

-  Acts violating provisions on unfair competition, including: misleading instruction; infringing business secrets; coercion in business; defamation; disruption of competitiors’ business; advertisement aimed at unfair competition; promotion aimed at unfair competition; discrimination by an association and illegal multi-level selling.

 

-   Acts violating other provisions of competition law, such as: economic concentrations; breaches of provisions on supply of information and documents; breaches of provisions on investigation and dealing with competition cases; implementation of agreements in restrain of competition or of economic concentrations before an exemption decision is rendered.

 

This Decree shall apply to business organizations and individuals and professional associations operating in Vietnam.

 

Consulted by Investconsult Group

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