What Are the Latest Changes to Egypt’s Competition Law in 2026?

Introduction

Egypt’s competition landscape is evolving rapidly. In 2026, significant amendments to the Egyptian Competition Law (Law No. 3 of 2005) came into effect, reshaping the regulatory environment for businesses operating in the country. Understanding these changes is crucial for companies to ensure compliance and avoid severe penalties. This article provides a comprehensive overview of the latest changes to Egypt’s competition law in 2026, highlighting key provisions, enforcement mechanisms, and practical implications.

Overview of Egypt’s Competition Law Framework

Egypt’s competition law, enforced by the Egyptian Competition Authority (ECA), aims to prevent monopolistic practices, promote fair competition, and protect consumer welfare. The 2026 amendments represent the most substantial overhaul since the law’s inception, addressing gaps in merger control, abuse of dominance, and cartel enforcement.

Key Changes in 2026

1. Stricter Merger Control Thresholds

One of the most significant changes is the lowering of merger notification thresholds. Previously, only transactions exceeding a certain turnover or market share required approval. Now, the ECA has introduced a dual threshold test based on both turnover and transaction value. Specifically:

• Turnover threshold: Combined annual turnover in Egypt exceeding EGP 500 million (previously EGP 1 billion).
• Transaction value threshold: Transaction value exceeding EGP 200 million, regardless of turnover.

This expansion captures more transactions, including those involving startups and digital platforms with high valuations but low current revenues.

2. Enhanced Merger Review Process

The ECA now has extended review periods: Phase I review increased from 30 to 60 working days, and Phase II from 90 to 120 working days. Additionally, the ECA can impose behavioral or structural remedies, including divestitures, to address competition concerns. A new ‘gun-jumping’ prohibition prohibits parties from closing a transaction before clearance, with penalties of up to 10% of annual turnover.

3. Expanded Definition of Abuse of Dominance

The 2026 amendments broaden the scope of abusive conduct. Previously, dominance was defined as a market share exceeding 25%. Now, the ECA considers additional factors such as barriers to entry, access to essential facilities, and network effects. New prohibited practices include:

• Refusal to supply on reasonable terms
• Excessive pricing
• Tying and bundling
• Predatory pricing

The ECA can now impose interim measures pending investigation, such as ordering the cessation of alleged abusive conduct.

4. Tougher Penalties for Cartels and Bid Rigging

Penalties for hardcore cartels (price-fixing, market allocation, output restrictions) and bid rigging have increased substantially. Maximum fines for companies rose from 12% to 20% of annual turnover for repeat offenders. Individuals involved can face imprisonment of up to 5 years (previously 3 years). The ECA also introduced a leniency program offering immunity or reduced fines for the first whistleblower, with subsequent applicants receiving up to 50% reduction.

5. Strengthened Investigative Powers

The ECA now has enhanced powers to conduct dawn raids without prior notice, seize electronic evidence, and request information from any person or entity, including foreign companies with operations in Egypt. Failure to comply with information requests can result in fines of up to EGP 1 million per day.

6. Digital Markets and Algorithmic Collusion

Recognizing the rise of digital platforms, the amendments explicitly address algorithmic collusion and data-driven market power. The ECA can now investigate and penalize the use of algorithms to facilitate price coordination or other anticompetitive behaviors. This aligns with global trends in competition enforcement.

Implications for Businesses

Companies operating in Egypt must reassess their compliance strategies. Key action points include:

• Reviewing merger and acquisition plans to determine if they trigger notification thresholds.
• Updating competition compliance programs to cover new prohibited practices.
• Training employees on antitrust risks, especially regarding information exchange and pricing algorithms.
• Ensuring robust document retention policies to respond to ECA requests.

Enforcement Outlook

The ECA has signaled a more aggressive enforcement stance. In early 2026, the authority launched investigations into several sectors, including pharmaceuticals, construction, and digital services. Companies should expect increased scrutiny and proactive monitoring of market behavior.

Conclusion

The latest changes to Egypt’s competition law in 2026 represent a paradigm shift towards stricter regulation and enforcement. Businesses must act promptly to understand and adapt to these new requirements. By staying informed and proactive, companies can mitigate risks and maintain compliance in Egypt’s evolving competitive landscape. For tailored advice, consulting with legal experts specializing in Egyptian competition law is highly recommended.