Decree No. 75/2019/ND-CP dated September 26, 2019 prescribing penalties for administrative violations against regulations on competition
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THE GOVERNMENT |
THE SOCIALIST
REPUBLIC OF VIETNAM |
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No.: 75/2019/ND-CP |
Hanoi, September 26, 2019 |
PRESCRIBING PENALTIES FOR ADMINISTRATIVE VIOLATIONS AGAINST REGULATIONS ON COMPETITION
Pursuant to the Law on organization of the Government dated June 19, 2015;
Pursuant to the Competition Law dated June 12, 2018;
Pursuant to the Law on penalties for administrative violations dated June 20, 2012;
Pursuant to the Law on enforcement of civil judgments dated November 14, 2008 and the Law on amendments to the Law on enforcement of civil judgments dated November 25, 2014;
At the request of the Minister of Industry and Trade;
The Government promulgates a Decree providing for penalties for administrative violations against regulations on competition.
1. This Decree deals with penalties, fines, remedial measures, the power to impose penalties, and implementation of decision on imposition of penalties for administrative violations against regulations of the competition law, administrative violations against other regulations on competition and the power to record administrative violations against other regulations on competition.
2. Administrative violations against regulations of the competition law include:
a) Violations against regulations on anti-competitive agreements;
b) Violations against regulations on abuse of dominant position or monopoly position;
c) Violations against regulations on economic concentrations;
d) Violations against regulations on unfair competition;
dd) Violations against other regulations on competition.
1. Organizations and individuals doing business (hereinafter referred to as "enterprises"), including producers and suppliers of public-utility products and services, enterprises engaging in state-monopolized sectors/domains, public service providers and foreign enterprises that operate in Vietnam.
2. Trade associations operating in Vietnam.
3. Relevant domestic and foreign authorities, organizations and individuals.
Article 3. Penalties and remedial measures
1. The entity that commits an administrative violation against regulations on competition shall be liable to one of the following primary penalties:
a) A warning; or
b) A fine.
2. Depending on the nature and severity of each administrative violation, the violating entity may face one or some of the following additional penalties:
a) The violating entity shall have its/his/her license, practicing certificate or operations suspended for a period of 06-12 months;
b) The exhibits and instrumentalities used for committing the administrative violation shall be confiscated;
c) Profits illegally obtained from the administrative violation shall be confiscated;
d) The enterprise registration certificate or equivalent document shall be revoked.
3. Besides incurring the penalties prescribed in Clause 1 and Clause 2 of this Article, the entity committing a violation against regulations on competition may be liable to one or some of the remedial measures mentioned below:
a) Enforced public correction of information;
b) Enforced removal of violating elements on the goods, goods labels, means of trading or articles;
c) Enforced restructuring of the enterprise that has abused its dominant position or monopoly position;
d) Enforced removal of illegal terms and conditions from business contract, agreement or transaction;
dd) Enforced full/partial division or transfer of partial or entire paid-in capital or assets of the enterprise that is established from the economic concentration;
e) Enforced operation under a competent authority’s control over prices of goods/services or other transaction terms included in contracts concluded by transferee/acquirer enterprises or enterprises that are established from economic concentration;
g) Enforced provision of sufficient information/documents;
h) Enforced restoration of conditions for technical/technological development which has been obstructed by the enterprise;
i) Enforced removal of terms and conditions unfavorable to customers;
k) Enforced restoration of terms and conditions of contracts or contracts which have been changed or invalidated without legitimate reasons;
a) Enforced restoration of original state.
4. The time-limit for implementing the remedial measure mentioned in Point e Clause 3 of this Article must be specified in the penalty imposition decision.
5. If a state agency performs any prohibited acts as prescribed in Clause 1 Article 8 of the Competition Law, it shall be requested by the National Competition Committee to stop performing such prohibited acts and repair damage caused by its performance of such acts. The requested state agency shall immediately stop performing the violations, implement remedial measures and make compensation for damage as regulated by laws.
1. The maximum fine imposed for a violation against regulations on anti-competitive agreements or abuse of dominant position or monopoly position shall be 10% of total turnover of the violating enterprise earned from the relevant market in the financial year preceding the year in which it committed the violation but shall not be lower than the minimum fine imposed upon the violating entity prescribed in the Criminal Code.
2. The maximum fine imposed for a violation against regulations on economic concentration shall be 05% of total turnover of the violating enterprise earned from the relevant market in the financial year preceding the year in which it committed the violation.
3. If total turnover of the violating enterprise earned from the relevant market in the financial year preceding the year in which it committed the violation as prescribed in Clause 1 and Clause 2 of this Article is zero as determined, it shall be liable to a fine ranging from VND 100,000,000 to VND 200,000,000.
4. Total turnover earned from the relevant market as prescribed in Clause 1 and Clause 2 of this Article is the sum of turnovers of the violating enterprise earned from all markets related to its violation in the following circumstances:
a) The enterprises engaging in the economic concentration are the ones engaging in the chain of production, distribution or supply of a certain type of goods or services or the business lines of enterprises engaging in the economic concentration are inputs or support those of each other;
b) Enterprises entering into a prohibited anti-competitive agreement are doing business in different stages of the same chain of production, distribution or supply of a certain type of goods or services.
5. The maximum fine imposed for a violation against regulations on unfair competition is VND 2,000,000,000.
6. The maximum fine imposed for a violation against other regulations on competition prescribed in this Decree is VND 200,000,000.
7. The maximum fines prescribed in Chapter II of this Decree are imposed for violations committed by organizations. The maximum fine imposed upon an individual shall be equal to a half of that imposed upon an organization for committing the same administrative violation against regulations on competition.
8. The specific fine imposed for an administrative violation against regulations on competition is the average level of the fine bracket for that violation.
If there are mitigating circumstances, the imposed fine may be lowered but shall not be lower than the minimum level of the fine bracket. If there are aggravating circumstances, the imposed fine may be increased but shall not exceed the maximum level of the fine bracket.
For every mitigating or aggravating circumstance, the fine which is determined according to regulations of this Clause shall be lowered or increased but such adjustment shall not exceed 15% of the average level of the fine bracket.
Article 5. Mitigating and aggravating circumstances
1. The following mitigating circumstances shall be taken into account when imposing penalties for violations against regulations on competition:
a) The violating entity has prevented or reduced the harm caused by the violation or voluntarily implements remedial measures or makes compensation for damage;
b) The violating entity has voluntarily made declarations and expresses contrition; has arduously assisted competent authorities in discovery and actions against the violation;
c) The violation is committed because the violating entity has been coerced or dependent on others;
d) The violating entity commits the violation for the first time.
2. The following aggravating circumstances shall be taken into account when imposing penalties for violations against regulations on competition:
a) There is an organized violation;
b) The violation has been committed for more than once or repeated;
c) The violating entity takes advantage of war, state of emergency, natural disaster, epidemic or other tragic circumstances of society to commit the violation;
d) The violating entity continues performing acts of violation although it/he/she has been requested by the Chairperson of the National Competition Committee, the competition case-handling council or another competent authority to stop performing such acts of violation;
dd) The violating entity has deliberately concealed the violation;
e) The violation involves a large amount or high value of goods.
3. Factors which have been considered for offering leniency for the penalty shall not be considered as mitigating factors.
VIOLATIONS AGAINST REGULATIONS ON COMPETITION, PENALTIES AND FINES TO BE IMPOSED
Section 1. VIOLATIONS AGAINST REGULATIONS ON ANTI-COMPETITIVE AGREEMENTS
1. A fine ranging from 01% to 10% of total turnover of an enterprise earned from the relevant market in the financial year preceding the year in which it committed the violation shall be imposed upon that enterprise if it is a party of one of the following anti-competitive agreements:
a) An agreement on direct or indirect fixing of prices of goods or services;
b) An agreement on customer allocation, market division, division of sources of supply of goods or services;
c) An agreement on limitation or control of the production or trading of goods or provision of services;
d) An agreement on big-rigging whereby one or more parties of this agreement can submit a winning bid for supply of goods or services in a tender process;
dd) An agreement on hindering or preventing another enterprise from entering the marketing or developing its business;
e) An agreement on forcing another enterprise that is not a party of the agreement out of the market;
g) An agreement on restriction of technical/technological development or investment if this agreement reduces or may reduce the competition in the market significantly;
h) An agreement on imposing or applying conditions for concluding contracts for trading of goods or provision of services to other enterprises or an agreement on forcing them to accept obligations which are not related to objects of contracts if this agreement reduces or may reduce the competition in the market significantly;
i) An agreement on refusal to deal with enterprises that are not parties of the agreement if this agreement reduces or may reduce the competition in the market significantly;
k) An agreement on restriction of consumption market, sources of supply of goods or services of other enterprises that are not parties of the agreement if this agreement reduces or may reduce the competition in the market significantly;
l) Another agreement that reduces or may reduce the competition in the market.
2. Additional penalties:
Profits illegally obtained from the administrative violations prescribed in Clause 1 of this Article shall be confiscated.
3. Remedial measures:
The violating entity is forced to remove illegal terms and conditions from business contracts, agreements or transactions.
4. The maximum fine imposed upon the violating entity for committing the violation prescribed in Point dd or Point e Clause 1 of this Article must be lower than the lowest fine for corresponding violation prescribed in the Criminal Code. If any signs of a crime, as prescribed in Article 217 of the 2015 the Criminal Code (as amended in the 2017 Law on amendments to the Criminal Code) are detected while taking actions against any of the violations prescribed in Clause 1 of this Article, Chairperson of the National Competition Committee shall transfer a part of or all documents of the case file relating to that crime to the authority competent to institute legal proceedings for initiating criminal prosecution in accordance with laws.
1. A fine ranging from 01% to 05% of total turnover of the enterprise that is a party of an anti-competitive agreement earned from the relevant market in the financial year preceding the year in which it committed the violation shall be imposed upon that enterprise for:
a) Reaching an agreement on direct or indirect fixing of prices of goods or services if this agreement reduces or may reduce the competition in the market significantly;
b) Reaching an agreement on customer allocation, market division, division of sources of supply of goods or services if this agreement reduces or may reduce the competition in the market significantly;
c) Reaching an agreement on limitation or control of the production or trading of goods or provision of services if this agreement reduces or may reduce the competition in the market significantly;
d) Reaching agreement on big-rigging whereby one or more parties of this agreement can submit a winning bid for supply of goods or services in a tender process;
dd) Reaching an agreement on hindering or preventing another enterprise from entering the marketing or developing its business;
e) Reaching an agreement on forcing another enterprise that is not a party of the agreement out of the market;
g) Reaching an agreement on restriction of technical/technological development or investment if this agreement reduces or may reduce the competition in the market significantly;
h) Reaching an agreement on imposing or applying conditions for concluding contracts for trading of goods or provision of services to other enterprises or an agreement on forcing them to accept obligations which are not related to objects of contracts if this agreement reduces or may reduce the competition in the market significantly;
i) Reaching an agreement on refusal to deal with enterprises that are not parties of the agreement if this agreement reduces or may reduce the competition in the market significantly;
k) Reaching an agreement on restriction of consumption market, sources of supply of goods or services of other enterprises that are not parties of the agreement if this agreement reduces or may reduce the competition in the market significantly;
l) Reaching another agreement that reduces or may reduce the competition in the market.
2. Additional penalties:
Profits illegally obtained from the administrative violation shall be confiscated.
3. Remedial measures:
The violating entity is forced to remove illegal terms and conditions from business contracts, agreements or transactions.
4. The maximum fine imposed upon the violating entity for committing the violation prescribed in Point dd or Point e Clause 1 of this Article must be lower than the lowest fine for corresponding violation prescribed in the Criminal Code. If any signs of a crime, as prescribed in Article 217 of the 2015 the Criminal Code (as amended in the 2017 Law on amendments to the Criminal Code) are detected while taking actions against the violation prescribed in Point dd or Point e Clause 1 of this Article, Chairperson of the National Competition Committee shall transfer a part of or all documents of the case file relating to that crime to the authority competent to institute legal proceedings for initiating criminal prosecution in accordance with laws.
Section 2. VIOLATIONS AGAINST REGULATIONS ON ABUSE OF DOMINANT POSITION OR MONOPOLY POSITION
Article 8. Abuse of dominant position
1. A fine ranging from 01% to 10% of total turnover of the enterprise holding dominant market position or each enterprise in the group of enterprises holding dominant market position earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon that enterprise for:
a) Selling goods or providing services below the costs that drives or probably drives competitors out of the market;
b) Imposing unreasonable purchase or selling prices of goods or services or setting a minimum resale price maintenance that causes or may cause harm to customers.
c) Restricting production or distribution of goods or provision of services, limiting markets or restricting technical/technological development that causes or may cause harm to customers;
d) Applying dissimilar conditions to equivalent transactions with other trading parties that prevents or may prevent other enterprises from engaging in or expanding their market or force them out of the market;
dd) Applying conditions for concluding contracts for trading of goods or provision of services to other enterprises or requesting other enterprises or customers to accept obligations which are not related to objects of contracts, that prevents or may prevent other enterprises from engaging in or expanding their market or force them out of the market;
e) Preventing other enterprises from engaging in or expanding their market;
g) Performing other prohibited acts of abuse of dominant position as regulated by law.
2. Additional penalties:
Profits illegally obtained from the administrative violation shall be confiscated.
3. Remedial measures:
a) The violating entity is forced to remove illegal terms and conditions from business contracts, agreements or transactions;
b) The enterprise that abuses its dominant position is forced to carry out restructuring.
Article 9. Abuse of monopoly position
1. A fine ranging from 01% to 10% of total turnover of the enterprise holding the monopoly position earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon that enterprise for:
a) Performing acts prescribed in Point b, c, d, dd or e Clause 1 Article 8 of this Decree;
b) Imposing terms and conditions unfavorable to customers;
c) Taking advantage of the monopoly position to unilaterally modify or invalidate the signed contract without legitimate reasons;
d) Performing other prohibited acts of abuse of the monopoly position as regulated by law.
2. Additional penalties:
Profits illegally obtained from the administrative violation shall be confiscated.
3. Remedial measures:
a) The enterprise that abuses the monopoly position is forced to carry out restructuring;
b) The violating entity is forced to remove illegal terms and conditions from business contracts, agreements or transactions;
c) The violating entity is forced to restore conditions for technical/technological development which it has obstructed;
d) The violating entity is forced to remove terms and conditions unfavorable to customers;
dd) The violating entity is forced to restore terms and conditions of contracts or contracts which have been changed or invalidated without legitimate reasons.
Section 3. VIOLATIONS AGAINST REGULATIONS ON ECONOMIC CONCENTRATIONS
Article 10. Banned merger of enterprises
1. A fine ranging from 01% to 05% of total turnover of the transferee enterprise and the transferor enterprise earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon the transferee enterprise for carrying out the merger banned as regulated in Article 30 of the Competition Law.
2. Remedial measures:
a) The transferee enterprise is forced to carry out full/partial division;
b) The transferee enterprise is forced to operate under a competent authority’s control over prices of goods/services or other transaction terms included in its signed contracts.
Article 11. Banned consolidation of enterprises
1. A fine ranging from 01% to 05% of total turnover of consolidating enterprises earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon the consolidated enterprise for carrying out the consolidation banned as regulated in Article 30 of the Competition Law.
2. Additional penalties:
The enterprise registration certificate which has been issued to the consolidated enterprise shall be revoked.
3. Remedial measures:
a) The consolidated enterprise is forced to carry out full/partial division;
b) The enterprise that is established after the economic concentration process is forced to operate under a competent authority’s control over prices of goods/services or other transaction terms included in its signed contracts.
Article 12. Banned acquisition of enterprises
1. A fine ranging from 01% to 05% of total turnover of the acquirer enterprise and the acquired enterprise earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon the acquirer enterprise for its purchase of a part or all of paid-in capital and assets of another enterprise which is banned as regulated in Article 30 of the Competition Law.
2. Remedial measures:
a) The acquirer enterprise is forced to sell the part or all of paid-in capital and assets which have been purchased;
b) The acquirer enterprise is forced to operate under a competent authority’s control over prices of goods/services or other transaction terms included in its signed contracts for a specific period.
Article 13. Banned joint venture between enterprises
1. A fine ranging from 01% to 05% of total turnover of each enterprise participating in the joint venture earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon that enterprise for participating in the joint venture banned as regulated in Article 30 of the Competition Law.
2. Additional penalties:
The enterprise registration certificate which has been issued to the joint venture shall be revoked.
3. Remedial measures:
The enterprise participating in the joint venture is forced to operate under a competent authority’s control over prices of goods/services or other transaction terms included in its signed contracts.
Article 14. Failure to give notification of economic concentration
A fine ranging from 01% to 05% of total turnover of each enterprise participating in the economic concentration earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon that enterprise for failure to give notification of such economic concentration as regulated in Article 33 of the Competition Law.
Article 15. Other violations against regulations on economic concentration
1. A fine ranging from 0.5% to 01% of total turnover of each enterprise participating in the economic concentration earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon that enterprise for:
a) Carrying out the economic concentration without obtaining a notice of preliminary valuation from the National Competition Committee as regulated in Clause 2 Article 36 of the Competition Law, except for the case prescribed in Clause 3 Article 36 of the Competition Law.
b) Carrying out the economic concentration before the National Competition Committee issues a decision as regulated in Article 41 of the Competition Law in case such economic concentration requires an official evaluation.
2. A fine ranging from 01% to 03% of total turnover of each enterprise participating in the economic concentration earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon that enterprise for:
a) Failing to satisfy or insufficiently satisfying the conditions specified in the decision on approval for economic concentration prescribed in Point b Clause 1 Article 41 of the Competition Law;
b) Carrying out the economic concentration in the case prescribed in Point c Clause 1 Article 41 of the Competition Law.
Section 4. VIOLATIONS AGAINST REGULATIONS ON UNFAIR COMPETITION
Article 16. Misappropriation of trade secrets
1. A fine ranging from VND 200,000,000 to VND 300,000,000 shall be imposed for committing one of the following violations:
a) Accessing or obtaining trade secrets by taking actions against security measures adopted by the older of such trade secrets;
b) Disclosing or using trade secrets without the permission of the holder of such trade secrets.
2. Additional penalties:
a) The exhibits and instrumentalities for committing the administrative violation shall be confiscated;
b) Profits illegally obtained from the administrative violation shall be confiscated.
Article 17. Use of coercion and undue influence in business
1. A fine ranging from VND 100,000,000 to VND 200,000,000 shall be imposed for threatening or coercing customers or business partners of an enterprise into refusing to enter into or suspending transactions with that enterprise.
2. A fine ranging from VND 200,000,000 to VND 300,000,000 shall be imposed for committing the violation prescribed in Clause 1 of this Article if the threatened or coerced customers or business partners are the largest ones of a competitor.
3. A fine twice as much as the fine for the administrative violation prescribed in Clause 1 or Clause 2 of this Article shall be imposed if the corresponding violation prescribed in Clause 1 or Clause 2 of this Article involves two provinces or central-affiliated cities or more.
4. Additional penalties:
a) The exhibits and instrumentalities for committing the administrative violation shall be confiscated;
b) Profits illegally obtained from the administrative violation shall be confiscated.
1. A fine ranging from VND 100,000,000 to VND 200,000,000 shall be imposed for trade libel by indirectly spreading false information about an enterprise with the aim of causing harm to the prestige, financial status or business operations of that enterprise.
2. A fine ranging from VND 200,000,000 to VND 300,000,000 shall be imposed for trade libel by directly spreading false information about an enterprise with the aim of causing harm to the prestige, financial status or business operations of that enterprise.
3. A fine twice as much as the fine for the administrative violation prescribed in Clause 1 or Clause 2 of this Article shall be imposed if the corresponding violation prescribed in Clause 1 or Clause 2 of this Article involves two provinces or central-affiliated cities or more.
4. Additional penalties:
a) The exhibits and instrumentalities for committing the administrative violation shall be confiscated;
b) Profits illegally obtained from the administrative violation shall be confiscated.
5. Remedial measures:
The violating entity is forced to make public correction of information.
Article 19. Disruption to business activities of other enterprises
1. A fine ranging from VND 50,000,000 to VND 100,000,000 shall be imposed for indirectly disturbing or disrupting business activities of another enterprise.
2. A fine ranging from VND 100,000,000 to VND 150,000,000 shall be imposed for directly disturbing or disrupting business activities of another enterprise.
3. A fine twice as much as the fine for the administrative violation prescribed in Clause 1 or Clause 2 of this Article shall be imposed if the corresponding violation prescribed in Clause 1 or Clause 2 of this Article involves two provinces or central-affiliated cities or more.
4. Additional penalties:
a) The violating entity shall have its/his/her license, practicing certificate or operations suspended for a period from 06 to 12 months from the effective date of the decision on settlement of competition case;
b) The exhibits and instrumentalities for committing the administrative violation shall be confiscated;
c) Profits illegally obtained from the administrative violation shall be confiscated.
Article 20. Illegally luring customers from other enterprises
1. A fine ranging from VND 100,000,000 to VND 200,000,000 shall be imposed for luring or poaching customers from other enterprises in one of the following forms:
a) The enterprise provides false or misleading information about its profiles or its products, services, promotion programs or trading conditions relating to its goods or services with the aim of attracting customers of other enterprises;
b) The enterprise compares its goods or services with those of the same types provided by other enterprises without giving persuasive evidence.
2. A fine twice as much as the fine for the administrative violation prescribed in Clause 1 or Clause 2 of this Article shall be imposed if the corresponding violation prescribed in Clause 1 or Clause 2 of this Article involves two provinces or central-affiliated cities or more.
3. Additional penalties:
a) The violating entity shall have its/his/her license, practicing certificate or operations suspended for a fixed period;
b) The exhibits and instrumentalities for committing the administrative violation shall be confiscated;
c) Profits illegally obtained from the administrative violation shall be confiscated.
4. Remedial measures:
a) The violating entity is forced to make public correction of information;
b) The violating entity is forced to remove violating elements on its goods, goods labels, and means of trading or articles.
Article 21. Selling goods or providing services below costs
1. A fine ranging from VND 800,000,000 to VND 1,000,000,000 shall be imposed for selling goods or providing services below their costs and thus driving or potentially driving other enterprises selling or providing the same type of goods or services out of the market.
2. A fine twice as much as the fine for the administrative violation prescribed in Clause 1 or Clause 2 of this Article shall be imposed if the corresponding violation prescribed in Clause 1 or Clause 2 of this Article involves two provinces or central-affiliated cities or more.
3. Additional penalties:
a) The exhibits and instrumentalities for committing the administrative violation shall be confiscated;
b) Profits illegally obtained from the administrative violation shall be confiscated.
Section 5. VIOLATIONS AGAINST OTHER REGULATIONS ON COMPETITION
Article 22. Violations against regulations on provision of information and documents
1. A warning shall be imposed upon the party subject to the investigation or the person with relevant interests and duties for failure to provide information/documents by the deadline requested by the National Competition Committee, the authority in charge of investigation into the competition case or the anti-competitive case handling council.
2. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed upon the party subject to the investigation or the person with relevant interests and duties for failure to provide sufficient information/documents as requested by the National Competition Committee, the authority in charge of investigation into the competition case or the anti-competitive case handling council.
3. A fine ranging from VND 20,000,000 to VND 50,000,000 shall be imposed the party subject to the investigation or the person with relevant interests and duties for:
a) Failing to provide information/documents as requested by the National Competition Committee, the authority in charge of investigation into the competition case or the anti-competitive case handling council;
b) Falsifying or providing false information/documents;
c) Forcing another person to provide false information/documents;
d) Concealing or destroying information/documents relating to the competition case.
4. Remedial measures:
The violating entity is forced to provide sufficient information/documents.
1. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for committing one of the following violations:
a) Disclosing confidential information/documents relating to the investigation;
b) Disrupting the court hearing.
2. Additional penalties:
The exhibits and instrumentalities used for committing the administrative violation shall be confiscated.
1. A fine ranging from VND 100,000,000 to VND 200,000,000 shall be imposed for each enterprise entering into an anti-competitive agreement in the exemption case prescribed in Article 14 of the Competition Law before obtaining an exemption decision from the Chairperson of the National Competition Committee.
2. Additional penalties:
a) The exhibits and instrumentalities for committing the administrative violation shall be confiscated;
b) Profits illegally obtained from the administrative violation shall be confiscated.
3. Remedial measures:
The violating entity is forced to restore the original state.
1. A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for providing information for or mobilizing, inciting, coercing or enabling enterprises to engage in anti-competitive or unfair practices.
2. Additional penalties:
a) The violating entity shall have its/his/her license, practicing certificate or operations suspended for a fixed period from 06 to 12 months from the effective date of the decision on imposition of penalty for violations against other regulations on competition;
b) The exhibits and instrumentalities used for committing the administrative violation shall be confiscated;
c) The enterprise registration certificate or equivalent document shall be revoked.
3. Remedial measures:
The violating entity is forced to make public correction of information.
Chairperson of the National Competition Committee shall have the power to:
1. Issue warning;
2. Impose a fine;
3. Impose one or some of the additional penalties prescribed in Points a, b, c Clause 2 Article 3 of this Decree;
4. Enforce one or some of the remedial measures mentioned in Points a, c, dd, e, h, I and k Clause 3 Article 3 of this Decree;
5. Request competent authorities to impose the penalty prescribed in Point d Clause 2 Article 3 of this Decree.
The anti-competitive case handling council shall have the power to:
1. Issue warning;
2. Impose a fine;
3. Impose the additional penalties prescribed in Points b, c Clause 2 Article 3 of this Decree;
4. Enforce the remedial measures mentioned in Points a, c, d, e, h, i and k Clause 3 Article 3 of this Decree.
Article 28. Power to impose penalties for violations against other regulations on competition
1. On-duty inspectors and persons assigned to carry out specialized inspections in competition sector shall have the power to:
a) Issue warning;
b) Impose fines up to VND 500,000 for violations against regulations on competition committed by individuals and up to VND 1,000,000 for those committed by organizations.
c) Confiscate the exhibits and instrumentalities used for committing administrative violations provided their value does not exceed the fine specified in Point b of this Clause;
d) Enforce the remedial measures mentioned in 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 Committee shall have the power to:
a) Issue warning;
b) Impose fines up to VND 100,000,000 for violations against regulations on competition committed by individuals and up to VND 200,000,000 for those committed by organizations;
c) Impose the additional penalties prescribed in Points b, c Clause 2 Article 3 of this Decree;
d) Enforce the remedial measures mentioned in Points a, g and l Clause 3 Article 3 of this Decree.
3. With regard to the violations prescribed in Article 25 of this Decree, Chairperson of the National Competition Committee and anti-competitive case handling council shall have the power to:
a) Issue warning;
b) Impose fines up to VND 25,000,000 for violations against regulations on competition committed by individuals and up to VND 50,000,000 for those committed by organizations;
c) Impose the additional penalties prescribed in Points a, b and c Clause 2 Article 3 of this Decree;
d) Enforce the remedial measures mentioned in Point a Clause 3 Article 3 of this Decree;
dd) Request competent authorities to impose the penalty prescribed in Point d Clause 2 Article 3 of this Decree.
1. Procedures for imposing penalties for administrative violations against regulations on anti-competitive agreements, abuse of dominant position and monopoly position, economic concentration and unfair competition shall comply with regulations of the Competition Law.
2. Procedures for imposing penalties for administrative violations against other regulations on competition shall comply with regulations of the Law on penalties for administrative violations.
3. Procedures and order for imposing additional penalties, enforcing remedial measures, preventive measures and measures for ensuring the enforcement of penalties in the course of imposing penalties for administrative violations against regulations on competition shall comply with regulations of the Competition Law and the Law on penalties for administrative violations.
Article 30. Power to record violations against other regulations on competition
When detecting any violations against other regulations on competition as prescribed in Section 5 Chapter II of this Decree, inspectors, persons assigned to carry out specialized inspections, heads of authorities in charge of investigation into competition cases, and clerks of court hearings must record administrative violations.
1. Any violating enterprise must abide by the decision on settlement of competition case made by the anti-competitive case handling council or of the Chairperson of the National Competition Committee within 15 days from the date on which such decision takes legal effect.
2. Any entity that commits any of the violations against other regulations on competition as prescribed in Section 5 Chapter II of this Decree is required to abide by the decision on imposition of penalties for that violation within 10 days from the date of receipt of that decision.
The violating entities that incur fines according to decisions on settlement of competition cases or decisions on imposition of penalties for violations against other regulations on competition shall make payment of fines to the State Treasury specified in such decisions.
Article 33. Implementation of decisions on settlement of competition cases
1. After the time limit specified in Article 31 of this Decree expires, if a decision debtor neither voluntarily implements the decision nor makes a complaint to the Chairperson of the National Competition Committee in accordance with regulations in Article 96 of the Competition Law, the decision creditor is entitled to request the competition authority prescribed in Clause 2 or Clause 3 of this Article in writing to enforce the decision on settlement of competition case within the ambit of its assigned functions, duties and powers.
2. Competent authorities shall revoke enterprise registration certificates or equivalent documents that they issued to the enterprises committing violations against regulations on competition at the request of anti-competitive case handling councils or Chairperson of the National Competition Committee as specified in decisions on settlement of competition cases.
3. Other competent authorities shall organize the implementation of measures
for enforcing the restructuring of enterprises that have abused their dominant
position, full/partial division of transferee or consolidated enterprises, or
transfer/sale of capital and assets that violating enterprises purchased at the
request of anti-competitive case handling councils or Chairperson of the
National Competition Committee as specified in decisions on settlement of
competition cases.
4. The civil enforcement agency of each province or central-affiliated city where the headquarters, residence or other assets of the relevant decision debtor is located shall organize the implementation of assets-related contents of the decision on settlement of competition case at the request of the decision creditor.
1. This Decree comes into force from December 01, 2019.
2. This Decree supersedes the Government's Decree No. 71/2014/ND-CP dated July 21, 2014 elaborating the Competition Law regarding penalties for violations against regulations of the Competition Law, except regulations in Article 36 (as amended in Clause 1 Article 1 of the Government's Decree No. 141/2018/ND-CP dated October 08, 2018 amending and supplementing a number of articles of Decrees prescribing penalties for violations against regulations on multi-level marketing).
The persons competent to impose penalties prescribed in Article 101, Article 102 and Article 103 of the Government's Decree No. 185/2013/ND-CP dated November 15, 2013 (as amended in the Government’s Decree No. 124/2015/ND-CP dated November 19, 2015 and the Government's Decree No. 141/2018/ND-CP dated October 08, 2018) shall have the power to impose penalties for administrative violations prescribed in Article 36 of the Government's Decree No. 71/2014/ND-CP dated July 21, 2014 (as amended in Clause 1 Article 1 of the Government's Decree No. 141/2018/ND-CP dated October 08, 2018) until an amending or superseding document is promulgated.
Article 36. Responsibility for implementation
Ministers, heads of ministerial agencies, heads of Governmental agencies and Chairpersons of Provincial People’s Committees shall be responsible for the implementation of this Decree./.
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