Egyptian Competition Authority refers five companies to prosecutors for Alexandria University contract collusion

The Egyptian Competition Authority has referred five companies to the Public Prosecutor following findings of collusion in contracting processes at Alexandria University. The investigation revealed that the companies coordinated to determine which firm would win five separate contracts for the supply of electronic correction devices and papers.

This coordination violates Article (6/c) of Competition Protection Law No. 3 of 2005, which prohibits competitors from agreeing to influence tenders, auctions, or supply offers. In addition to criminal proceedings, the Authority has mandated administrative measures requiring the companies to immediately cease all explicit or implicit coordination and refrain from exchanging sensitive commercial information with competitors.

The Authority characterized these horizontal agreements, or cartels, as among the most serious competition crimes because they restrict market entry and expansion. It noted that such practices are particularly damaging in government procurement, as they can inflate public purchase prices by up to 50% compared to true market values, thereby impacting the state budget and public interest.