Prohibited Practices
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Prohibited Practices Start Comparison
Please provide information in relation to any noteworthy penalties that were imposed on any entities engaged in prohibited practices such as cartel conduct, abuse of dominance, etc.

In 2019, the Competition Council imposed a daily penalty of DZD 500,000 (approx. USD 3,850) on a supplier, which persisted until the cessation of an abuse of dominant position and refusal to sell, in the case of Archipel vs. United Tobacco Company.

Has the authority brought any cases against parties in a vertical relationship for infringing the competition legislation? If so, please provide details.

No. We are not aware of any published cases.

Please explain how exclusivity clauses and non-compete restraints are treated in your jurisdiction. Have there been any prosecution against entities for implementing exclusivity clauses or non-compete restraints? If so, please provide details.

Algeria has a broad prohibition on exclusivity, which applies to production, distribution and service operations. Article 10 of the Competition Law, states that “A practice shall be deemed to have the effect of preventing, restricting or distorting free competition and shall prohibit any act and/or contract, whatever its nature and purpose, which confers on an undertaking exclusivity in the exercise of an activity falling within the scope of this Order”.

Non-compete restraints are not expressly regulated under Algerian law. Therefore, they are not prohibited, insofar as they have no impact on the free play of competition in Algeria.

We are not aware of prosecutions by the Competition Council in 2021 against entities for implementing exclusivity clauses or non-compete restraints.

Has the authority launched and publicised any new investigations since January 2021 against any entities for engaging in prohibited practices? If so, please provide details.

No.

Does the competition legislation contain provisions on the abuse of buyer power? If so, has the authority brought any cases against entities accused of abusing buyer power? If so, please provide details.

The Competition Law has provisions prohibiting the abuse of economic dependence by a buyer vis-à-vis a supplier. Economic Dependence is defined as a “…commercial relationship in which one of the enterprises has no comparable alternative solution if it wishes to refuse to contract under the conditions imposed on it by another enterprise, customer or supplier”. Pursuant to Article 11 of the Competition Law, the abusive exploitation by an enterprise of the state of dependence of another enterprise, customer or supplier shall be prohibited if it is likely to affect the free play of competition. Such abuse may consist of:

a) a refusal to sell, without legitimate reason for the refusal;

b) concomitant or discriminatory selling;

c) sale that is conditional on the acquisition of a minimum quantity;

d) the obligation to resell at a minimum price;

e) the termination of a commercial relationship on the sole ground that the partner refuses to submit to unjustified commercial conditions; and

f) any other act that would reduce or eliminate the benefits of competition in a market.

The Competition Council has not brought any case against entities accused of abusing buyer power

Is cartel conduct/ anti-competitive conduct criminalised in your jurisdiction? If so, have any criminal charges been brought/convictions made against any persons and/or entities for engaging in any anti-competitive conduct? If so, please provide details.

Yes. Cartel conduct/anti-competitive conduct is criminalised in Algeria. Apart from the above-mentioned Competition Council decision, we are not aware of any criminal charges brought, or convictions made, against any persons and/or entities for engaging in anti-competitive conduct.