Decree No.75/2019/ND-CP penalties for administrative violations in competition

DECREE
on sanctioning of administrative violations in competition
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Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law in competition dated June 12, 2018;

Pursuant to the Law on Handling of Administrative Violations dated June 20, 2012;

Pursuant to the Law on Enforcement of Civil Judgments dated November 14, 2008 and the Law dated November 25, 2014 amending and supplementing a number of articles of the Law on Enforcement of Civil Judgments;

At the request of the Minister of Industry and Trade;

The Government promulgates a Decree on sanctioning of administrative violations in competition.

Chapter I
GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree specifies sanctioning forms and levels, remedial measures, the competence to impose sanctions, the enforcement of sanctions against acts of administrative violations in competition, other acts of administrative violations in competition and the competence to make written records for acts of administrative violation in competition.

2. Acts of administrative violations in competition include:

a) Acts of violating regulations on anti-competitive agreements;

b) Acts of violating regulations on abuse of market dominance and monopoly;

c) Acts of violating regulations on economic concentration;

d) Acts of violating regulations on unfair competition;

d) Other acts of violating law provisions on competition.

Article 2. Subjects of application

1. Business organizations and individuals (hereinafter collectively referred to as enterprises) include enterprises producing and supplying public products and services and enterprises operating in sectors and fields under the State monopoly, public service providers and foreign enterprises conducting business in Vietnam.

2. Professional associations operating in Vietnam.

3. Relevant domestic and foreign agencies, organizations and individuals.

Article 3. Sanctioning forms and remedial measures for administrative violations in competition

1. For each act of administrative violations in competition, organizations and individuals shall be sanctioned in one of the following forms:

a) Warning;

b) Fine.

2. Depending on the nature and seriousness of their violations, organizations and individuals committing administrative violations in competition shall also be subject to one or several of the following additional sanctions:

a) Deprivation of the right to use licenses, practice certificates or suspension of operations for 6 to 12 months;

b) Confiscation of material evidences and means used for commission of violations;

c) Confiscation of profits earned from committing acts of violation;

d) Revocation of enterprise registration certificates or equivalent documents.

3. Apart from the sanctions specified in Clauses 1 and 2 of this Article, organizations and individuals committing administrative violations in competition shall also be subject to one or several of the following remedial measures:

a) Forced public rectification;

b) Forced removal of elements of violation from goods, packages, business means and items;

c) Forced restructuring of enterprises that abuse their positions of market dominance or monopoly;

d) Forced removal of illegal provisions from business contracts, agreements or transactions;

e) Forced split and resale of a portion or the entire capital and assets of the enterprise established after the economic concentration;

e) Forced to be under the control of competent state agencies on purchase and sale prices of goods or services or other transaction conditions in contracts of mergers or acquisitions or enterprises newly established after the economic concentration;

g) Forced provision of all information and documents;

h) Forced restoration of technical and technological development conditions that the enterprises have hindered;

i) Forced removal of adverse conditions imposed on customers;

k) Forced restoration of the terms or the contracts which has been changed or canceled without plausible reasons;

l) Force restoration to original states.

4. The terms for applying remedial measures specified at Point f, Clause 3 of this Article shall be stated in handling and sanctioning decisions.

5. In case the state agencies commit acts specified in Clause 1, Article 8 of the Law on Competition, the National Competition Commission shall request the state agencies to stop the acts of violations and conduct remedial measures. The State agencies shall stop their acts of violation, conduct remedial measures and compensate for damages according to law provisions.

Article 4. The levels of fines for acts of administrative violations in competition

1. The maximum fine for acts of violating regulations on anti-competitive agreements and abuse of market dominance or monopoly is 10% of the total turnover of the violating enterprises on the relevant market in the fiscal year preceding the year of committing acts of violation, but it shall be lower than the lowest fine for organizations and individuals committing acts of violation as specified in the Penal Code.

2. The maximum fine for acts of violating regulations on economic concentration is 05% of the total turnover of the violating enterprises on the relevant market in the fiscal year preceding the year of committing acts of violation.

3. In case the total turnover of the violating enterprises on the relevant market in the fiscal year preceding the year of committing acts of violation as specified in Clauses 1 and 2 of this Article is defined as 0 (zero), the fine shall vary from VND 100,000,000 to VND 200,000,000.

4. The total turnover on the relevant market as specified in Paragraphs 1 and 2 of this Article shall be defined as the total revenue from all the markets related to violations of the following subjects:

a) Enterprises participating in economic concentration, which participate in the production, distribution and supply chains for a certain type of goods or services, or whose business lines are the inputs or complements for each other;

b) Enterprises participating in prohibited anti-competitive agreements, which are enterprises operating in different stages of the same production, distribution and supply chain for a certain type of goods or services.

5. The maximum fine for violating regulations on unfair competition is VND 2,000,000,000.

6. The maximum fine for other acts of violating the provisions of this Decree is VND 200,000,000.

7. The maximum fine specified in Chapter II of this Decree shall be applied to acts of violation of organizations; for individuals with the same acts of administrative violation in competition, the maximum fine shall be half of the maximum fine for organizations.

8. The specific fine for an act of administrative violation in competition is the average of the levels of fines for such act of violation.

If extenuating circumstances are involved, the fine shall be reduced but not lower than the minimum fine level; if aggravating circumstances are involved, the fine shall be increased but shall not exceed the maximum fine level.

For each extenuating or aggravating circumstance, the fine determined according to the provisions of this Clause shall be reduced or increased by maximum 15% of the average of the levels of fines.

Article 5. Extenuating and aggravating circumstances

1. Extenuating circumstances in sanctioning violations of law provisions on competition include:

a) The violators have prevented or reduced the consequences of the violations or voluntarily conducted remedial measures and compensated for the damages;

b) The violators have voluntarily declared and sincerely repented; actively helped the authorities to detect and handle violations;

c) Violations committed under coercion or dependency;

d) First-time violations.

2. Aggravating circumstances in sanctioning violations of law provisions on competition include:

a) Organized violations;

b) Committing violations more than once or relapse of violation;

c) Taking advantage of wars, natural disasters, catastrophic epidemics or other special difficulties of the society to commit violations;

d) Continuing to commit violations even though the President of the National Competition Commission, Council on Handling of Competition Cases or other competent authorities have requested to stop such acts of violation;

d) Evading or hiding evidences after committing acts of violation;

f) Violations in large scale or with great quantities and values of goods.

3. The circumstances according to leniency policies shall not be considered as mitigating circumstances.

Chapter II
ACTS OF VIOLATION, FORMS AND LEVELS OF SANCTIONING ACTS OF ADMINISTRATIVE VIOLATION IN COMPETITION

Section 1
ACTS OF VIOLATING REGULATIONS ON ANTI-COMPETITION AGREEMENTS

Article 6. Acts of making anti-competition agreements by enterprises on the same relevant market

1. A fine of between 1% and 10% of the total turnover of the violating enterprises on the relevant market in the financial year preceding the year of committing acts of violation shall be imposed for enterprises which are the parties to one of the following agreements:

a) Agreement on fixing prices of goods and services directly or indirectly;

b) Agreement on division of customers and consumption markets, supply of goods and provision of services;

c) Agreement on limiting or controlling the quantity and volume of production, purchase and sale of goods or provision of services;

d) Agreement on winning in bidding for the supply of goods services of one or several parties;

e) Agreement on restraining or prevention of other enterprises from participating in the market or developing business;

f) Agreement on removal from the market of enterprises which are not parties to the agreements;

g) Agreement on restriction of technical and technological development or investment, and such agreement exerts or is likely to exert significant anti-competitive impact on the market;

h) Agreement on imposing conditions on signing contracts for purchase and sale of goods, provision of services to other enterprises or forcing other enterprises to accept obligations not directly related to the subjects of the contracts, and such agreement exerts or is likely to exert significant anti-competitive impact on the market

i) Agreement no not dealing with external parties, and such agreement exerts or is likely to exert significant anti-competitive impact on the market;

k) Agreement on restraining consumption markets of products, sources of goods or provision of services by external parties, and such agreement exerts or is likely to exert significant anti-competitive impact on the market;

l) Other agreements that cause or are likely to cause anti-competitive effects.

2. Additional sanctions:

Confiscation of profits earned from committing acts of violation as specified in Paragraph 1 of this Article.

3. Remedial measures:

Forced removal of law-violated provisions from the contracts, agreements or business transactions.

4. The maximum fine for organizations and individuals committing acts of violation specified at Point d and Point e, Clause 1 of this Article shall be lower than the corresponding lowest fine according to provisions in the Penal Code for organizations and individuals committing such acts of violation. In the process of sanctioning of acts of violation specified in paragraph 1 of this Article, upon detection of criminal signs specified in Article 217 of the 2015 Penal Code (as amended and supplemented by the Law amending and supplementing a number of articles of the 2017 Penal Code), the Chairperson of the National Competition Commission shall take responsibilities for submitting a part or the whole record of criminal signs to the competent procedural authorities for execution in accordance with law provisions.

Article 7. Acts of restricting competition of enterprises at different stages of the same production, distribution and supply chain of a certain type of goods or service

1. A fine of between 1% and 5% of the total turnover of the violating enterprises on the relevant market in the financial year preceding the year of committing acts of violation shall be imposed for enterprises which are the parties to one of the following agreements:

a) Agreement on fixing prices of goods and services directly or indirectly, and such agreement exerts or is likely to exert significant anti-competitive impact on the market;

b) Agreement on division of customers and consumption markets, supply of goods and provision of services, and such agreement exerts or is likely to exert significant anti-competitive impact on the market;

c) Agreement to limit or control the quantity, volume of production, purchase, sale of goods or provision of services, and such agreement exerts or is likely to exert significant anti-competitive impact on the market;

d) Agreeing to one or both parties to the agreement win the bid when participating in bidding for the supply of goods or provision of services,

d) Agreement on winning in bidding for the supply of goods services of one or several parties;

e) Agreement on restraining or prevention of other enterprises from participating in the market or developing business;

f) Agreement on removal from the market of enterprises which are not parties to the agreements;

g) Agreement on restriction of technical and technological development or investment, and such agreement exerts or is likely to exert significant anti-competitive impact on the market;

h) Agreement on imposing conditions on signing contracts for purchase and sale of goods, provision of services to other enterprises or forcing other enterprises to accept obligations not directly related to the subjects of the contracts, and such agreement exerts or is likely to exert significant anti-competitive impact on the market

i) Agreement no not dealing with external parties, and such agreement exerts or is likely to exert significant anti-competitive impact on the market;

k) Agreement on restraining consumption markets of products, sources of goods or provision of services by external parties, and such agreement exerts or is likely to exert significant anti-competitive impact on the market;

l) Other agreements that cause or are likely to cause anti-competitive effects.

2. Additional sanctions:

Confiscation of profits earned from committing acts of violation as specified in Paragraph 1 of this Article.

3. Remedial measures:

Forced removal of law-violated provisions from the contracts, agreements or business transactions.

4. The maximum fine for organizations and individuals committing acts of violation specified at Point d and Point e, Clause 1 of this Article shall be lower than the corresponding lowest fine according to provisions in the Penal Code for organizations and individuals committing such acts of violation. In the process of sanctioning of acts of violation specified in paragraph 1 of this Article, upon detection of criminal signs specified in Article 217 of the 2015 Penal Code (as amended and supplemented by the Law amending and supplementing a number of articles of the 2017 Penal Code), the Chairperson of the National Competition Commission shall take responsibilities for submitting a part or the whole record of criminal signs to the competent procedural authorities for execution in accordance with law provisions.

Section 2
ACTS OF VIOLATING REGULATIONS ON ABUSE OF MARKET DOMINANCE AND MONOPOLY

Article 8. Acts of abusing market dominance

1. A fine of between 1% and 10% of the total turnover on the relevant market in the fiscal year preceding the year of committing acts of violation shall be imposed on market dominant enterprises or each enterprise in the group of market dominant enterprises for one of  the following acts of violation:

a) Selling goods or providing services with the prices which are lower than the total costs, resulting in or possibly leading to elimination of competitors;

b) Imposing unreasonable buying and selling prices of goods and services or fixing minimum resale prices causing or likely to cause losses to customers;

c) Restricting the production and distribution of goods and services, limiting the market, restricting the technical and technological development causing or likely to cause losses to customers;

d) Applying different commercial conditions in similar transactions that prevent or likely to prevent other enterprises from participating in or expanding markets, or eliminate other enterprises;

d) Imposing conditions on other enterprises in the signing of sale and purchase contracts of goods and services or requesting other enterprises and customers to accept the obligations not directly related to the subjects of the contracts, thus preventing or likely to prevent other enterprises from participating in or expanding markets, or eliminate other enterprises;

f) Preventing other enterprises from participating in or expanding their markets;

g) Prohibited acts of abusing market dominance according to other law provisions.

2. Additional sanctions:

Confiscation of profits earned from committing acts of violation as specified in Paragraph 1 of this Article.

3. Remedial measures:

a) Forced removal of law-violated provisions from the contracts, agreements or business transactions.

b) Forced restructuring of enterprises that have abuse their market dominance.

Article 9. Acts of abusing monopoly

1. A fine of between 1% and 10% of the total turnover on the relevant market in the fiscal year preceding the year of committing acts of violation shall be imposed on monopoly enterprises for one of the following acts of violation:

a) Acts of violation as specified at Points b, c, d, dd and e, Clause 1, Article 8 of this Decree;

b) Imposing unfavorable conditions on customers;

c) Abusing their monopoly to unilaterally change or cancel the signed contracts without plausible reasons;

d) Prohibited acts of abusing monopoly according to other law provisions.

2. Additional sanctions:

Confiscation of profits earned from committing acts of violation.

3. Remedial measures:

a) Forced restructuring of enterprises that abuse their monopoly;

b) Forced removal of unlawful provisions from business contracts, agreements or transactions;

c) Forced restoration of technical and technological development conditions that the enterprises have hindered;

d) Forced removal of adverse conditions imposed on customers;

e) Forced restoration of the terms and contracts that has been changed or canceled without plausible reasons.

Section 3
ACTS OF VIOLATING REGULATIONS ON ECONOMIC CONCENTRATION

Article 10. Prohibited acts of merging enterprises

1. A fine of between 1% and 5% of the total turnover in the relevant market of the mergers and the merged enterprises in the fiscal year preceding the year of committing prohibited acts of merging enterprises as specified in Article 30 of the Law on Competition shall be imposed on the mergers.

2. Remedial measures:

a) Forced division or separation of the merged enterprises;

b) Forced being under the control of competent state agencies on the purchase and sale prices of goods or services or other transaction conditions in the contracts of merging enterprises.

Article 11. Prohibited acts of amalgamating enterprises

1. A fine of between 1% and 5% of the total turnover in the relevant market of the enterprises involved in the amalgamation in the fiscal year preceding the year of committing prohibited acts of amalgamating enterprises as specified in Article 30 of the Law on Competition shall be imposed on the amalgamated enterprises.

2. Additional sanctions:

Revocation of enterprise registration certificates granted to the amalgamated enterprises.

3. Remedial measures:

a) Forced division or separation of the amalgamated enterprises;

b) Forced being under the control of competent state agencies on the purchase and sale prices of goods or services or other transaction conditions in the contracts of enterprises which are newly established after the economic concentration.

Article 12. Prohibited acts of purchasing enterprises

1. A fine of between 1% and 5% of the total turnover in the relevant market of the purchasers and the purchased enterprises in the fiscal year preceding the year of committing prohibited acts of purchasing enterprises as specified in Article 30 of the Law on Competition shall be imposed on the purchasers.

2. Remedial measures:

a) Forced resale of a part or the whole contributed capital or assets that the enterprises have purchased;

b) Forced being under the control of competent state agencies on the purchase and sale prices of goods or services or other transaction conditions in the contracts of purchasers.

Article 13. Prohibited acts of joint venture among enterprises

1. A fine of between 1% and 5% of the total turnover in the relevant market of enterprises participating in joint-venture in the fiscal year preceding the year of committing prohibited acts of joint-venture as specified in Article 30 of the Law on Competition shall be imposed on the participants of joint-venture.

2. Additional sanctions:

Revocation of enterprise registration certificates granted to the joint-venture enterprise.

3. Remedial measures:

Forced being under the control of competent state agencies on the purchase and sale prices of goods or services or other transaction conditions in the contracts of joint-venture enterprises.

Article 14. Acts of failing to notify the economic concentration

A fine of between 1% and 5% of the total turnover in the relevant market in the fiscal year preceding the year of committing acts of violation shall be imposed on each enterprise participating in economic concentration without fulfilling the notification obligations as specified in Article 33 of the Law on Competition.

Article 15. Other acts of violating regulations on economic concentration

1. A fine of between 0.5% and 01% of the total turnover on the relevant market in the fiscal year preceding the year of committing acts of violation shall be imposed on each enterprise participating in economic concentration for one of the following acts of violation:

a) Performing economic concentration without notifying the results of preliminary examination of the National Competition Commission as specified in Clause 2, Article 36 of the Law on Competition, except for the cases specified in Clause 3, Article 36 of the Law Compete;

b) Performing economic concentration without the decisions by the National Competition Commission as specified in Article 41 of the Law on Competition in case the economic concentration is subject to official examination.

2. A fine of between 1% and 3% of the total turnover on the relevant market in the fiscal year preceding the year of committing acts of violation shall be imposed on each enterprise participating in economic concentration for the following acts of violation:

a) Failing to implement or insufficiently fulfilling the conditions in the decisions on economic concentration as specified at Point b, Clause 1, Article 41 of the Law on Competition;

b) Performing economic concentration in the cases specified at Point c, Clause 1, Article 41 of the Law on Competition.

Section 4
ACTS OF VIOLATING REGULATIONS ON UNFAIR COMPETITION

Article 16. Act of infringing confidential business information

1. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on one of the following acts:

a) Accessing and collecting confidential business information by breaking security measures of the owners;

b) 

2. Additional sanctions:

a) Confiscation of material evidences and means used for committing administrative violations in competition;

b) Confiscation of profits earned from committing acts of violation.

Article 17. Acts of business coercion

1. A fine of between VND 100,000,000 and VND 200,000,000 shall be imposed on acts of coercing customers or business partners of other enterprises by intimidating or forcing them to avoid or stop the business activities with such enterprises.

2. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on acts specified in Clause 1 of this Article in case of forcing the biggest customers or business partners of competitors.

3. A fine of twice the fines specified in paragraphs 1 and 2 of this Article shall be imposed on acts of violation specified in Clause 1, Clause 2 of this Article in case such acts of violation are committed in at least two provinces or municipalities.

4. Additional sanctions:

a) Confiscation of material evidences and means used for committing administrative violations in competition;

b) Confiscation of profits earned from committing acts of violation.

Article 18. Providing untruthful information on other enterprises

1. A fine of between VND 100,000,000 and VND 200,000,000 shall be imposed on the act of providing untruthful information about other enterprises by indirectly giving untruthful information about such enterprises, which adversely affects their reputation, financial status or business performance.

2. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on the act of providing untruthful information about other enterprises by directly giving untruthful information about enterprises, which negatively affects their reputation, financial status or business performance.

3. A fine of twice the fines specified in paragraphs 1 and 2 of this Article shall be imposed on acts of violation specified in Clause 1, Clause 2 of this Article in case such acts of violation are committed in at least two provinces or municipalities.

4. Additional sanctions:

a) Confiscation of material evidences and means used for committing administrative violations in competition;

b) Confiscation of profits earned from committing acts of violation.

5. Remedial measures:

Forced public rectification.

Article 19. Acts of disturbing business activities of other enterprises

1. A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed on acts of indirectly obstructing or disrupting business activities of other enterprises.

2. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on acts of directly obstructing or disrupting business activities of other enterprises.

3. A fine of twice the fines specified in paragraphs 1 and 2 of this article shall be imposed on acts of violation specified in Clause 1, Clause 2 of this Article in case such acts of violation are committed in at least two provinces or municipalities.

4. Additional sanctions:

a) Deprivation of the rights to use licenses and practice certificates or suspension of operations for 6 to 12 months from the effective date of the decisions on handling of violations;

b) Confiscation of material evidences and means used for committing administrative violations in competition;

c) Confiscation of profits earned from committing acts of violation.

Article 20. Acts of illegally inducing customers

1. A fine of between VND 100,000,000 and VND 200,000,000 shall be imposed on one of the following acts of illegally inducing customers:

a) Providing false or misleading information to customers about the enterprises or goods, services, promotions and transaction conditions related to goods and services provided by the enterprises in order to attract customers of other enterprises;

b) Comparing their goods or services with the same kinds of goods and services of other enterprises but failing to verify the contents.

2. A fine of twice the fines specified in Clause 1 of this Article shall be imposed acts of violation in Clause 1 of this Article in case such acts of violation are committed in at least two provinces or municipalities.

3. Additional sanctions:

a) Deprivation of the rights to use licenses and practice certificates or suspension of operations for a definite term;

b) Confiscation of material evidences and means used for committing administrative violations in competition;

c) Confiscation of profits earned from committing acts of violation.

4. Remedial measures:

a) Forced public rectification;

b) Forced removal of elements of violation from goods, packages, business means and items;

Article 21. Acts of selling goods and providing services with prices which are lower than the total cost

1. A fine of between VND 800,000,000 and VND 1,000,000,000 shall be imposed on acts of selling goods or providing services with prices which are lower than the total cost, leading to or possibly leading to the elimination of other enterprises doing business with the same categories of goods or services.

2. A fine of twice the fines specified in Clause 1 of this Article shall be imposed acts of violation in Clause 1 of this Article in case such acts of violation are committed in at least two provinces or municipalities.

3. Additional sanctions:

a) Confiscation of material evidences and means used for committing administrative violations in competition;

b) Confiscation of profits earned from committing acts of violation.

Section 5
ACTS OF VIOLATING OF OTHER LAW PROVISIONS ON COMPETITION

Article 22. Acts of violating regulations on providing information and documents

1. A warning shall be imposed on the investigated parties and persons with relevant interests and obligations for the late provision of information and documents at the request of the National Competition Commission, the Competition Investigation Agencies and the Councils for Settlement of Anti-competitive cases.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed on the investigated parties and persons with relevant interests and obligations for the insufficient provision of information and documents at the request of the National Competition Commission, the Competition Investigation Agencies and the Councils for Settlement of Anti-competitive cases.

3. A fine of between VND 20,000,000 and VND 50,000,000 shall be imposed on the investigated parties and persons with relevant interests and obligations for one of the following acts of violation:

a) Failing to provide information and documents at the request of the National Competition Commission, the Competition Investigation Agency and the Councils for Settlement of Anti-competitive cases;

b) Providing false information or documents or falsifying information and documents;

c) Forcing others to provide false information and documents;

d) Concealing or destroying information and documents related to the cases.

4. Remedial measures:

Forced provision of sufficient information and documents.

Article 23. Acts of violating other regulations on investigation and handling of competition cases

1. A fine of between VND 10,000,000 and VND 20,000,000 shall imposed on one of the following acts of violation:

a) Disclosing information and documents under investigation secrets;

b) Disturbing the hearings.

2. Additional sanctions:

Confiscation of material evidences and means used for committing administrative violations.

Article 24. Acts of making anti-competition agreements before competent agencies issue decisions on exemption

1. A fine of between VND 100,000,000 and 200,000,000 shall be imposed on each enterprise participating in anti-competition agreements in the cases of exemption specified in Article 14 of the Law on Competition before the Chairperson of the National Competition Commission issues decisions on exemption

2. Additional sanctions:

a) Confiscation of material evidences and means used for committing administrative violations in competition;

b) Confiscation of profits earned from committing acts of violation.

3. Remedial measures:

Forced restoration to the original state.

Article 25. Acts ofdisseminating, mobilizing, calling on, forcing or organizing enterprises to perform acts of anti-competition and unfair competition

1. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on acts of disseminating, mobilizing, calling on, forcing or organizing enterprises to perform acts of anti-competition and unfair competition.

2. Additional sanctions:

a) Deprivation of the rights to use licenses and practice certificates or suspension of operations for 6 to 12 months from the effective date of the decisions on handling of violations;

b) Confiscation of material evidences and means used for committing administrative violations in competition;

c) Revocation of enterprise registration certificates or equivalent documents.

3. Remedial measures:

Forced public rectification.

Chapter III
COMPETENCE AND PROCEDURES FOR SACNTIONING ADMINISTRATIVE VIOLATIONS IN COMPETITION

Section 1
COMPETENCE FOR SACNTIONING ADMINISTRATIVE VIOLATIONS IN COMPETITION

Article 26. Competence for sanctioning administrative violations of economic concentration and unfair competition

The Chairperson of the National Competition Commission shall have the rights to impose the following sanctions:

1. Warning;

2. Fine;

3. Applying one or several additional sanctions specified at Points a, b and c, Clause 2, Article 3 of this Decree;

4. Applying one or several remedial measures specified in Points a, c, dd, e, h, i and k, Clause 3, Article 3 of this Decree;

5. Requesting competent state agencies to apply the measures specified at Point d, Clause 2, Article 3 of this Decree.

Article 27. Competence for sanctioning administrative violations of anti-competition agreements, abuse of market dominance and monopoly

The Councils for settlement of anti-competitive cases shall have the rights to impose the following sanctions:

1. Warning;

2. Fine;

3. Applying one or several additional sanctions specified at Points b and c, Clause 2, Article 3 of this Decree;

4. Applying one or several remedial measures specified in Points a, c, d, e, h, i and k, Clause 3, Article 3 of this Decree;

Article 28. Competence for sanctioning acts of violating other law provisions on competition

1. Inspectors on duty and persons assigned to perform specialized inspection tasks in competition shall have the rights to impose the following sanctions:

a) Warning;

b) Impose fines of up to VND 500,000 on individuals and VND 1,000,000 on organizations;

c) Confiscation of material evidences and means of administrative violations; whose value is lower than the fines specified at Point b of this Clause;

d) Applying remedial measures specified at Point g, Clause 3, Article 3 of this Decree.

2. Chief inspector of the Ministry of Industry and Trade and Chairperson of the National Competition Commission shall have the rights to impose the following sanctions:

a) Warning;

b) Imposing fines of up to VND 100,000,000 on individuals and VND 200,000,000 on organizations;

c) Applying additional penalties specified in Point b and Point c Article 2 of this Decree;

d) Applying remedial measures specified at Points a, g and 1, Clause 3, Article 3 of this Decree.

3. For acts of violation specified in Article 25 of this Decree, the Chairperson of the National Competition Commission and the Councils for settlement of anti-competitive cases shall have the rights to impose the following sanctions:

a) Warning;

b) Imposing fines of up to VND 25,000,000 on individuals and VND 50,000,000 on organizations;

c) Applying additional penalties specified at Points a, b and c, Clause 2, Article 3 of this Decree;

d) Applying remedial measures specified at Point a, Clause 3, Article 3 of this Decree;

d) Requesting the competent state agencies to apply the measures specified at Point d, Clause 2, Article 3 of this Decree.

Section 2
PROCEDURES FOR SANCTIONING ADMINISTRATIVE VIOLATIONS IN COMPETITION

Article 29. Procedures for sanctioning administrative violations in competition

1. The procedures for sanctioning acts of violating the regulations on anti-competitive agreements, abuse of market dominance and monopoly, economic concentration and unfair competition shall comply with the provisions of the Law on Competition.

2. The procedures for sanctioning acts of violating the provisions of the Law on Competition shall comply with the law provisions on the handling of administrative violations.

3. The order and procedures for applying additional sanctions, remedial measures and preventive measures and ensuring the handling of administrative violations in competition shall comply with the provisions of the Law on Competition and the Law on handling of administrative violations.

Article 30. Competence to make records of administrative violations of other law provisions on competition

When acts of violating other law provisions on competition specified in Section 5, Chapter II of this Decree are detected, inspectors and persons assigned to perform specialized inspection tasks, heads of competition investigation agencies, investigators of competition cases, secretaries of the hearings shall make records of administrative violations.

Section 3
PROCEDURES FOR IMPLEMENTING DECISIONS ON HANDLING OF COMPETITION CASES, DECISIONS ON ADMINISTRATIVE SANCTIONS OF OTHER LAW VIOLATIONS IN COMPETITION

Article 31. Complying with decisions on handling of competition cases and decisions on administrative sanctions of other law violations in competition

1. Violating enterprises shall abide by the decisions on handling of violations of the councils for settlement of anti-competitive cases and the chairperson of the National Competition Commission within 15 days after their effective date.

2. Organizations and individuals that violate other law provisions on competition as specified in Section 5, Chapter II of this Decree shall abide by the decisions on administrative sanctions of other law violations in competition within 10 days after receiving such decisions.

Article 32. Places of paying fines

Organizations and individuals fined in accordance with decisions on handling of competition cases and decisions on administrative sanctions of other law violations in competition shall pay fines at the State Treasury stated in such decisions.

Article 33. Execution of decisions on handling of competition cases

1. Upon the expiry of the term specified in Article 31 of this Decree, if handled organizations and individuals do not voluntarily execute the decisions or send complaints to the Chairperson of the National Competition Commission in accordance with Article 96 of the Law on Competition, the executors of the decisions shall make requests to the competent agencies as specified in Clauses 2 and 3 of this Article to organize the execution of the decisions in accordance with their functions, duties and powers.

2. Competent agencies shall revoke enterprise registration certificates or equivalent documents granted to enterprises committing administrative violations in competition at the request of the councils for settlement of anti-competitive cases and the Chairperson of the National Competition Commission as specified in the decisions on handling of competition cases.

3. Other competent agencies shall have to organize the implementation of measures on forced restructuring of enterprises that abuse market dominance and split the merged or amalgamated enterprises or forced resale of the purchased shares at the request of the councils for settlement of anti-competitive cases and the Chairperson of the National Competition Commission as specified in the decisions on handling of competition cases.

4. Civil judgment enforcement agencies of provinces or municipalities where the head offices, residential places or properties of the parties subject to civil judgement are located shall organize the execution of the parts in decisions on handling of the competition cases, which are related to the properties at the request of the parties who are entitled to execute such decisions.

Chapter IV 
IMPLEMENTATION PROVISIONS

Article 34. Enforceability

1. This Decree takes effect from December 01, 2019.

2. This Decree replaces Decree No.71/2014/ND-CP dated July 21, 2014 of the Government detailing regulations of Law on Competition on imposition of penalties for violations against Law on Competition, except for provisions of Article 36 (amended and supplemented under Clause 1, Article 1 of the Government s Decree No.141/2018/ND-CP dated October 8, 2018 amending and supplementing a number of articles of decrees prescribing penalties for violations against regulations on multi-level marketing).

Article 35. Transitional provisions

Persons with sanctioning competence specified in Articles 101, 102 and 103 of Decree No.185/2013/ND-CP dated November 15, 2013 of the Government providing the penalties on administrative violations in commercial activities, production of, trading in counterfeit or banned goods and protection of consumer rights(amended and supplemented under the Government s Decree No.124/2015/ND-CP dated November 19, 2015 amending and supplementing a number of articles of the Government s Decree No.185/2013/ND-CP dated November 15, 2013 providing the penalties on administrative violations in commercial activities, production of, trading in counterfeit or banned goods and protection of consumer rights,and the Government s Decree No.141/2018/ND-CP dated October 8, 2018 amending and supplementing a number of articles of decrees prescribing penalties for violations against regulations on multi-level marketing) shall have the rights to sanction administrative violations for acts of violation specified in Article 36 of Decree No.71/2014/ND-CP dated July 21, 2014 of the Government detailing regulations of Law on Competition on imposition of penalties for violations against Law on Competition, except for provisions of Article 36 (amended and supplemented under Clause 1, Article 1 of the Government s Decree No.141/2018/ND-CP dated October 8, 2018 amending and supplementing a number of articles of decrees prescribing penalties for violations against regulations on multi-level marketing) until the regulations are amended, supplemented or replaced.

Article 36. Responsibility of implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial/municipal People s Committees shall implement this Decree.

For the Government

The Prime Minister

Nguyen Xuan Phuc