13
magazine
ALRAQABA
It is noticed that the Legislator
required the intention of harm-
ing other competitors without the
need of achieving the damage of
aggressive pricing.
- Limiting the freedom of prod-
ucts overflowing in or out the market com-
pletely or partially by hiding them or stop-
ping trading with them, or storing them
without any right on way or another.
Here, the competitor deliberately limits his/her
products and stops trading with them. Either
by hiding them or storing them with no right
and in any way possible. This, results in a re-
duction of supply against the demand and
consequently prices rise, but this increase is an
artificial one due to interference in the mecha-
nism of supply and demand. In this case, the
Legislator did not require the existence of an
influence on the competition, what matters is
proving the act and not the resulting damage,
which is influencing competition.
- Blocking available products in the market
from someone completely or partially.
The executive regulation clearly defined what
is meant by blocking. It stated that blocking
products in the market occurs if it was done
through storing, or dominance, or creating
means to make the product rare whether it
was a flexible or not flexible product, or with-
drawing the product from the market, or selling
it with prices that are conflicted in the market
with the intention to harm other competitors.
Note that the Legislator required here the in-
tention to harm other competitors.
- Complete or partial stop from production,
development, distribution or marketing pro-
cedures of products and services, putting
restraints on their availability according to
the regulations stated in the executive list.
2- Harming competition through unfair or il-
legal contracts and agreements.
The following are the illegal and illegitimate
practices and agreements
listed in the article (4) of the
Kuwaiti Law:
- Influencing the tenders of
selling, buying, providing
or importing products and
services. Whether in ten-
ders, biddings or importing of-
fers. Cooperative offers from
applicants are not included
because they are public.
It means influencing price of-
fers presented by product of
service controller, or who enjoys a dominant
position. Since, based on his/her position, they
might influence the tenders of other competi-
tors by submitting price quotations that are dif-
ferent from the actual prices used to sell the
product or service. Or by making implicit deals
between competitors and dominant position
holders. Resulting in one tender wining as the
lowest offer making it a win outside free com-
petition rules. It destroys the principles of ten-
ders and bidding which is equal competition.
- Putting clauses in the tenders’ condition
where a brand or the type of product is
named.
Naming a specific brand compels each ap-
plicant to offer his/her price based on buying
from a specific source that sell that product.
This affects producers of the same product.
- Sharing products markets or allocating
them based of geographical areas, or dis-
tribution centers, or type of clients, or prod-
ucts, or seasons, or periods with the inten-
tion to harm the competition.
These practices refer to the agreements that
occur between competitors who produce, sell
or distribute similar products and services and
homogenous in the market. It can be that these
agreements are verbal or documented and it is
considered as horizontal agreements that gov-
ern competition.
(1)
The Legislators mentioned the types of divi-
sion. It could be geographical and occurs by
allocating each of the competing projects one
geographical area that cannot be exceeded. It
also can be seasonal and occurs by determin-
ing a season or a timeframe for each of the
competing projects to offer their products.
Also, by product, or accord-
ing to distribution centers.
Finally, according to the cus-
tomer’s type. For example,
one projects specializes in
distributing its products on
schools. Whereas another
(1)
Agreements that govern competition is divided into two types: Horizontal, which refers to agreements done
between establishments practicing the same activities; i.e. between producers, wholesale traders and retailers
who deal with similar products. Whereas vertical agreements refer to agreements done between business estab-
lishments working in different phases of production and distribution; such as agreements between manufacturers.
the competitor
deliberately limits his/
her products
and stops trading
with them
These practices refer to
the agreements that occur
between competitors who
produce, sell or distribute similar
products and services and
homogenous in the market
