LAW NUMBER 5 YEAR 1999 - ASEAN Competition · LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA...

LAW NUMBER 5 YEAR 1999

CONCERNING

THE PROHIBITION OF MONOPOLISTIC PRACTICES

ANDUNFAIR BUSINESS COMPETITION

COMMISSION FOR THE SUPERVISION OF BUSINESS COMPETITIONOF THE REPUBLIC OF INDONESIA

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2 LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999

LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 3

Content

1. LAW OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 CONCERNING THE PROHIBITION OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION

CHAPTER I General Provisions 8

CHAPTER II Principles and Purposes 10

CHAPTER III Prohibited Agreements 11

CHAPTERIV ProhibitedActivities 15

CHAPTERV DominantPosition 17

CHAPTERVI CommissionfortheSupervisionofBusinessCompetition 19

CHAPTER VII Case Handling Procedure 23

CHAPTERVIII Sanctions 27

CHAPTER IX Miscellaneous Provisions 28

CHAPTERX TransitionalProvisions 29

CHAPTER XI Closing Provisions 30

2. ELUCIDATION ON THE LAW OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 CONCERNING THE PROHIBITION OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION

General 33

ArticlebyArticle 35



LAW OF THE REPUBLIC OF INDONESIANUMBER 5 YEAR 1999

CONCERNINGTHE PROHIBITION

OF MONOPOLISTIC PRACTICES

AND UNFAIR BUSINESS COMPETITION



THE PRESIDENT OF THE REPUBLIC INDONESIA

LAW OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999

CONCERNINGTHE PROHIBITION OF MONOPOLISTIC PRACTICES AND

UNFAIR BUSINESS COMPETITION

BY THE GRACE OF THE ALMIGHTY GOD

THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering: a. whereasdevelopmentinthefieldofeconomymustbedirectedtowards the achievement of the people’s welfare based on Pancasilaandthe1945Constitution;

b. whereasdemocracy in thefieldofeconomycalls forequalopportunityforeverycitizentoparticipateintheprocessofproductionandmarketingofgoodsandorservices,inafair,effectiveandefficientbusinessenvironment,soastobeabletopromoteeconomicgrowthandthefunctioningofareasonablemarketeconomy;

c. whereas anyone engaging in business in Indonesia must be in theconditionoffairandnormalcompetition,thusnotcausingaconcentrationofeconomicpoweraroundcertainbusinessactors, while observing the commitments made by the State of theRepublic of Indonesiawith regard to InternationalConventions;

d. whereasinordertoachievethemattersasintendedinitemsa,bandc,basedon the initiativeproposedby theDewanPerwakilanRakyat (People’s LegislativeAssembly), a Lawconcerning theProhibitionofMonopolistic Practices andUnfairBusinessCompetitionneedstobeformulated;


Inviewof: Article 5 paragraph (1), Article 21 paragraph (1), Article 27paragraph(2)andArticle33ofthe1945Constitution,

With the approval ofTHE PEOPLE’S LEGISLATIVE ASSEMBLY

OF THE REPUBLIC OF INDONESIA

HAS DECIDED TO:

Stipulate: LAW CONCERNING THE PROHIBITION OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION

CHAPTER I GENERAL PROVISIONS

Article 1

Referred to in this law as:

1. Monopolyshallbecontroloftheproductionandormarketingofgoodsandortheuse of certain services by one business actor or by one group of business actors.

2. Monopolisticpractices shall be the concentrationof economicpowerbyoneormorebusinessactors,resultinginthecontroloftheproductionandormarketingofcertaingoodsandorservices thuscausingunfairbusinesscompetitionandbeingpotentiallyharmfultothepublicinterest.

3. Thecentralizationofeconomicpowershallbetheactualcontrolofamarketbyone or more business actors, enabling them to determine the price of goods and or services.

4. Dominantpositionshallbeaconditioninwhichabusinessactorhasnosubstantialcompetitorsintherelevantmarketinrelationtothemarketsharecontrolled,orabusinessactorhasthehighestpositionamongitscompetitorsintherelevantmarketintermsoffinancialcapacity,capacitytoaccesssupplyorsales,andthecapability to adjust supply or demand of certain goods or services.

5. Businessactorsshallbeanyindividualorbusinessentity,eitherincorporatedornotincorporatedaslegalentity,establishedanddomiciledorconductingactivitieswithin the jurisdictionof the stateof theRepublicof Indonesia,eitherindividuallyorjointlybasedonagreement,conductingvariousbusinessactivitiesinthefieldofeconomy.


6. Unfairbusinesscompetitionshallbecompetitionamongbusinessactors inconductingactivities for theproductionandormarketingofgoodsandorservicesinanunfairorunlawfulmannerimpedingcompetition.

7. Agreementshallbetheactofoneormorebusinessactorstobindthemselveswithoneormoreotherbusinessactorsunderanyname,eitherinwritingorinnon-writtenform.

8. Conspiracyorbusinessconspiracyshallbeaformofcooperationundertakenbyonebusinessactorwithanotherwiththeintentionofcontrollingtherelevantmarketintheinterestoftheconspiringbusinessactors.

9. Marketshallbeaneconomicinstitutioninwhichsellersandbuyersareabletoconduct,eitherdirectlyorindirectly,transactionsforthetradingofgoodsand or services.

10. Relevantmarketshallbethemarketrelatedtoacertainmarketingrangeorarea by business actors in respect of goods and or services of the same or similartypeorsubstitutesforsuchgoodsandorservices.

11. Marketstructureshallbemarketconditionsprovidingindicatorsofaspectshavingsignificantimpactonbusinessactors’behaviorandmarketperformance,among other things the number of sellers and buyers, barriers to enter and exit themarket,productvariety,distributionsystem,andmarketsharecontrol.

12. Marketbehavior shall be conductundertakenbybusiness actors in theircapacity as suppliers or buyers of goods and or services with the aim of achievingthecompany’sobjectives,amongotherthingsforgainingprofits,increasingassets,salestargetsandcompetitionmethodsapplied.

13. Marketshareshallbethepercentageofthesaleorpurchasevalueofcertaingoodsorservicescontrolledbyacertainbusinessactorintherelevantmarketwithin a certain calendar year.

14. Marketpriceshallbethepricepaidintransactionsofgoodsandorservicesinaccordancewiththeagreementreachedamongthepartiesconcernedintherelevantmarket.

15. Consumersshallbeanyuserandorutilizerofgoodsandorservices,eitherfortheirowninterestorfortheinterestofotherparties.

16. Goods shall be any physical objects, either tangible or intangible, movable or immovable,whichcanbetraded,used,utilizedorexploitedbyconsumersorbusiness actors.


17. Servicesshallbeanyservicesintheformofworkorperformancetradedinsocietywiththepurposeofbeingutilizedbyconsumersorbusinessactors.

18. CommissionfortheSupervisionofBusinessCompetitionshallbeacommissionformedtooverseebusinessactorsinconductingtheirbusinessactivitiesinordertoensurethattheydonotconductmonopolisticpracticesandorunfairbusinesscompetition.

19. District Court shall be the court, as intendedunder applicable laws andregulations,atthelegaldomicileofthebusinessofthebusinessactorsconcerned.

CHAPTER II PRINCIPLES AND PURPOSES

Article 2

Businessactors in Indonesiamustconduct theirbusinessactivitiesbasedontheprinciplesofeconomicdemocracy,withdueobservanceoftheequilibriumbetweenthe interests of business actors and the public interest.

Article 3

Thepurposesofenactingthislawshallbeasfollows:

a. safeguardthepublicinterestandenhancetheefficiencyofthenationaleconomyasoneoftheendeavorsaimedatimprovingthepeople’swelfare;

b. createaconducivebusinessclimatebyregulatingfairbusinesscompetitioninordertoensurecertaintyinequalbusinessopportunitiesforlarge-,middle-aswellassmall-scalebusinessactors;

c. preventmonopolisticpracticesandorunfairbusinesscompetitioncausedbybusinessactors;and

d. creatingeffectivenessandefficiencyinbusinessactivities.


CHAPTER III PROHIBITED AGREEMENTS

Part One

Oligopoly

Article 4

(1) Businessactorsshallbeprohibitedfromenteringintoagreementswithotherbusinessactorsforjointlycontrollingtheproductionandormarketingofgoodsandorserviceswhichmaypotentiallycausetheoccurrenceofmonopolisticpracticesandorunfairbusinesscompetition.

(2) Businessactorsshallbereasonablysuspectedordeemedtobejointlyinvolvedinthecontroloftheproductionandormarketingofgoodsandorservices,asintendedinparagraph(1),if2(two)or3(three)businessactorsoragroupofbusinessactorscontrolmorethan75%(seventy-fivepercent)ofthemarketshare of a certain type of goods or services.

Part Two

Price Fixing

Article 5

(1) Businessactorsshallbeprohibitedfromenteringintoagreementswiththeirbusinesscompetitorstofixthepriceofcertaingoodsandorserviceswhichmustbepaidbyconsumersorcustomersinthesamerelevantmarket.

(2) Theprovisionsintendedinparagraph(1)shallnotbeapplicabletothefollowing:

a. anagreemententeredintointhecontextofajointventure;or

b. an agreement entered into based on prevailing laws.

Article 6

Business actors shall be prohibited from entering into agreements causing a buyer havingtopayapricewhichisdifferentfromthatpayablebyotherbuyersforthesame goods and or services.


Article 7

Business actors shall be prohibited from entering into agreements with their business competitorstofixpricesbelowmarketprices,whichmaypotentiallycauseunfairbusinesscompetition.

Article 8

Business actors shall be prohibited from entering into agreements with other business actorssettingforththeconditionthatpartiesreceivingthegoodsandorservicesshall not sell or resupply the goods and or services received by them, at a price lower thanthecontractedprice,potentiallycausingunfairbusinesscompetition.

Part Three

Dividing Territories

Article 9

Business actors shall be prohibited from entering into agreements with their business competitorswhichhavethepurposeofdividingmarketingterritoriesorallocatingthemarketforgoodsandorservices,potentiallycausingmonopolisticpracticesandorunfairbusinesscompetition.

Part Four

Boycott

Article 10

(1) Businessactorsshallbeprohibitedfromenteringintoagreementswiththeirbusinesscompetitorswhichmayimpedeotherbusinessactorsinengaginginthesamebusiness,eitherfordomesticoroverseasmarketpurposes.

(2) Businessactorsshallbeprohibitedfromenteringintoagreementswiththeirbusinesscompetitorstorefusetosellanygoodsandorservicesofotherbusinessactors, whereby such act:

a. causesalossormaybesuspectedofpotentiallycausingalosstootherbusinessactors;or


b. poses constraint on other business actors in selling or buying any goods andorservicesfromtherelevantmarket.

Part Five

Cartel

Article 11

Business actors shall be prohibited from entering into agreements with their business competitors,withtheintentionofinfluencingpricesbyarrangingtheproductionandormarketingofcertaingoodsandorservices,whichmaycausemonopolisticpracticesandorunfairbusinesscompetition.

Part Six

Trust

Article 12

Business actors shall be prohibited from entering into agreements with other business actorstoengageincooperationbyestablishingajointcompanyoralargercompany,bykeepingandmaintainingthecontinuityofeachrespectivecompanyoritsmembers,withtheaimofcontrollingtheproductionandormarketingofgoodsandorservices,whichmaycausemonopolisticpracticesandorunfairbusinesscompetition.

Part Seven

Oligopsony

Article 13

(1) Businessactorsshallbeprohibitedfromenteringintoagreementswithotherbusinessactorswiththeaimofjointlycontrollingthepurchaseoracquisitionofsuppliesinordertocontrolpricesofgoodsandorservicesintherelevantmarket,whichmaycausemonopolisticpracticesandorunfairbusinesscompetition.

(2) Businessactorsshallbereasonablysuspectedordeemedtobejointlycontrollingthepurchaseoracquisitionofsuppliesasintendedinparagraph(1)if2(two)or3(three)businessactorsoragroupofbusinessactorscontrolmorethan75%(seventy-fivepercent)ofthemarketshareofacertaintypeofgoodsorservices.


Part Eight

Vertical Integration

Article 14

Business actors shall be prohibited from entering into agreements with other business actorswith theaimof controlling theproductionof several goods constitutingproductswhichareincludedintheproductionchainofcertainrelatedgoodsandorserviceswherebyeachproductionseriesistheendproductofprocessingorfurtherprocessing,eitherinadirectorindirectseries,whichmaypotentiallycauseunfairbusinesscompetitionandormaybeharmfultosociety.

Part Nine

Exclusive Dealing

Article 15

(1) Businessactorsshallbeprohibitedfromenteringintoagreementswithotherbusinessactorssettingforththeconditionthatthepartyreceivingthegoodsandorservicesshallonlyresupplyorshallrefrainfromresupplyingtheaforementionedgoodsandorservicestocertainpartiesandoratacertainplace.

(2) Businessactorsshallbeprohibitedfromenteringintoagreementswithotherpartiessettingforththeconditionthatthepartyreceivingcertaingoodsandorservices must be prepared to purchase other goods and or services from the supplying business actor.

(3) Businessactorsshallbeprohibitedfromenteringintoagreementsconcerningpricesorcertainpricediscountsforgoodsandorservices,settingforththecondition that thebusinessactor receivinggoodsandor services from thesupplying business actor:

a. must be prepared to purchase other goods and or services from the supplyingbusinessactor;or

b. shall not purchase the same or similar goods and or services from other businessactorsthatarethecompetitorsofthesupplyingbusinessactor.


Part Ten

Agreements With Foreign Parties

Article 16

Businessactorsshallbeprohibitedfromenteringintoagreementswithotherpartiesoverseassettingforthconditionswhichmaycausemonopolisticpracticesandorunfairbusinesscompetition.

CHAPTER IV PROHIBITED ACTIVITIES

Part One

Monopoly

Article 17

(1) Businessactors shallbeprohibited fromcontrolling theproductionandormarketingofgoodsandorserviceswhichmaycausemonopolisticpracticesandorunfairbusinesscompetition.

(2) Business actors shall be reasonably suspected or deemed to control theproductionandormarketingofgoodsandorservicesasintendedinparagraph(1)inthefollowingevents:

a. thereisnosubstituteavailableyetforthegoodsandorservicesconcerned;or

b. causing other business actors to be unable to enter into business competitionforthesamegoodsandorservices;or

c. onebusinessactororagroupofbusinessactorscontrolsmorethan50%(fiftypercent)ofthemarketshareofacertaintypeofgoodsorservices.

Part TwoMonopsony

Article 18

(1) Businessactorsshallbeprohibitedfromcontrollingtheacquisitionofsuppliesorfromactingassolebuyerofgoodsandorservicesintherelevantmarketwhichmaypotentiallycausemonopolisticpracticesandorunfairbusinesscompetition.


(2) Business actors shall be reasonably suspected or deemed to control theacquisitionofsuppliesortobeactingassolebuyerasintendedinparagraph(1)ifonebusinessactororagroupofbusinessactorscontrolsmorethan50%(fiftypercent)ofthemarketshareofacertaintypeofgoodsorservices.

Part ThreeMarket Control

Article 19

Businessactorsshallbeprohibitedfromengaginginoneorseveralactivities,eitherindividuallyor jointlywithotherbusinessactors,whichmaycausemonopolisticpracticesandorunfairbusinesscompetition,intheformofthefollowing:

a. reject andor impedecertainotherbusinessactors in conducting the samebusinessactivitiesintherelevantmarket;or

b. impedeconsumersorcustomersoftheircompetitorsinengaginginabusinessrelationshipwithsuchbusinesscompetitors;or

c. restrainthedistributionandorsalesofgoodsandorservicesintherelevantmarket;or

d. engageindiscriminatorypracticesagainstcertainbusinessactors.

Article 20

Business actors shall be prohibited from supplying goods and or services at a price belowcostorbysettingextremelylowpriceswiththeaimofeliminatingorruiningthebusinessoftheircompetitorsintherelevantmarketwhichmaycausemonopolisticpracticesandorunfairbusinesscompetition.

Article 21

Businessactorsshallbeprohibitedfromengaginginunfairpracticesindeterminingproductioncostandothercostsaspartofthepricecomponentofgoodsandorserviceswhichmaypotentiallycauseunfairbusinesscompetition.


Part FourConspiracy

Article 22

Businessactorsshallbeprohibitedfromconspiringwithotherpartieswiththeaimofdeterminingtheawardeesoftenderswhichmaycauseunfairbusinesscompetition.

Article 23

Businessactorsshallbeprohibitedfromconspiringwithotherpartieswiththeaimofobtaininginformationregardingthebusinessactivitiesoftheircompetitorsclassifiedascompanysecretwhichmaycauseunfairbusinesscompetition.

Article 24

Businessactorsshallbeprohibitedfromconspiringwithotherpartiesinordertoimpedetheproductionandormarketingofgoodsandorservicesoftheircompetitorswiththeaimofcausingthegoodsandorservicesofferedorsuppliedintherelevantmarkettodiminish,eitherinthequantity,qualityortimelinessrequired.

CHAPTER V DOMINANT POSITION

Part One

General

Article 25

(1) Businessactorsshallbeprohibitedfromusingdominantpositioneitherdirectlyor indirectly to:

a. determine theconditionsof tradingwith theaimofpreventingandorimpedingconsumersfromobtainingcompetitivegoodsandorservices,bothintermsofpriceaswellasquality;or

b. restrainthemarketandtechnologydevelopment;or

c. hamperotherpotentialbusinessactorsfromenteringtherelevantmarket.


(2) Businessactorsshallhaveadominantpositionasintendedinparagraph(1)inthe following events:

a. onebusinessactororagroupofbusinessactorscontrolsmorethan50%(fiftypercent)ofthemarketshareofacertaintypeofgoodsorservices;or

b. two or three business actors or a group of business actors control more than75%(seventy-fivepercent)ofthemarketshareofacertaintypeofgoods or services.

Part TwoInterlocking Directorate

Article 26

Apersonholding theposition as amember of theboardof directors or as acommissioner of a company, shall be prohibited from concurrently holding the positionasamemberoftheboardofdirectorsoracommissionerinanothercompany,in the event that such companies:

a. areinthesamerelevantmarket;or

b. haveastrongconnectioninthefieldandortypeofbusinessactivitiesconcerned;or

c. are jointly capableof controlling themarket shareof certain goodsandorservices,

whichmayresultinmonopolisticpracticesandorunfairbusinesscompetition.

Part ThreeShare Ownership

Article 27

Business actors shall be prohibited from owning majority shares in several companies ofthesametypeconductingbusinessactivitiesinthesamefieldinthesamerelevantmarket,orfromestablishingseveralcompanieswiththesamebusinessactivitiesinthesamerelevantmarket,ifsuchownershipcauses:

a. onebusinessactororagroupofbusinessactorstocontrolmorethan50%(fiftypercent)ofthemarketshareofacertaintypeofgoodsorservices;

b. twoorthreebusinessactorsoragroupofbusinessactorstocontrolmorethan75%(seventy-fivepercent)ofthemarketshareofacertaintypeofgoodsorservices.


Part FourMergers, Consolidations and Acquisitions

Article 28

(1) Businessactorsshallbeprohibitedfromconductingmergersorconsolidationsofbusinessentitieswhichmaycausemonopolisticpracticesandorunfairbusinesscompetition.

(2) Businessactorsshallbeprohibitedfromconductingtheacquisitionofsharesinothercompaniesifsuchactionmaycausemonopolisticpracticesandorunfairbusinesscompetition.

(3) Furtherprovisionsregardingtheprohibitionofmergersorconsolidationsofbusinessentitiesasintendedinparagraph(1),andprovisionsconcerningtheacquisitionofshares incompaniesas intendedinparagraph(2)shallbesetforthinaGovernmentRegulation.

Article 29

(1) TheCommissionmustbenotifiedofmergersor consolidationsofbusinessentities,oracquisitionofsharesasintendedinArticle28resultingintheassetvalue and or selling price thereof exceeding a certain amount, by no later than 30(thirty)daysfromthedateofsuchmerger,consolidationoracquisition.

(2) Provisionsregardingthedeterminationoftheassetvalueandorthesellingpriceaswellastheprocedureforgivingnoticeasintendedinparagraph(1)shallbesetforthinaGovernmentRegulation.

CHAPTER VICOMMISSION FOR THE SUPERVISION OF BUSINESS COMPETITION

Part OneStatus

Article 30

(1) ACommissionfortheSupervisionofBusinessCompetition,hereinafterreferredastheCommission,shallbeformedtooverseetheimplementationofthisLaw.

(2) TheCommissionshallbeanindependentinstitutionfreefromtheinfluenceandauthorityoftheGovernmentandotherparties.


(3) TheCommissionshallberesponsibletothePresident.

Part TwoMembership

Article 31

(1) TheCommissionshallconsistofaChairpersonactingconcurrentlyasmember,aViceChairpersonactingconcurrentlyasmember,andnotlessthan7(seven)members.

(2) MembersoftheCommissionshallbeappointedanddismissedbythePresidentupontheapprovalofthePeople’sLegislativeAssembly.

(3) MembersoftheCommissionshallbeappointedforatermofofficeof5(five)yearsandtheyshallbeeligibleforreappointmentfor1(one)subsequenttermofoffice.

(4) IfduetotheexpirationofthetermofofficeavacancyoccursintheCommission’smembership, the termofofficeofmembersmaybeextendeduntilanewmember is appointed.

Article 32

TherequirementsformembershipintheCommissionshallbeasfollows:

a. citizenoftheRepublicofIndonesia,atleast30(thirty)yearsofageandnotolderthan60(sixty)yearsatthetimeofappointment;

b. loyaltoPancasilaandthe1945Constitution;

c. believesinanddevotedtoTheAlmightyGod;

d. honest,fairandhavinggoodconduct;

e. residingwithintheterritoryoftheStateoftheRepublicofIndonesia;

f. experiencedinthefieldofbusinessorpossessingknowledgeandexpertiseinthefieldoflawandoreconomics;

g. hasneverbeenconvictedofacrime;

h. hasneverbeendeclaredbankruptbyacourtofjustice;and

i. isnotaffiliatedwithaparticularbusinessentity.


Article 33

Membership in the Commission shall terminate due to the following reasons:

a. demise;

b. resignationupontheperson’sownrequest;

c. residingoutsidetheterritoryofthestateoftheRepublicofIndonesia;

d. continuousphysicalormentalillness;

e. expirationoftermofmembershipintheCommission;or

f. dismissal.

Article 34

(1) TheformationoftheCommissionanditsorganizationalstructure,dutiesandfunctionsshallbestipulatedbyaPresidentialDecree.

(2) Fortheuninterruptedimplementationofitsduties,theCommissionshallbeassisted by a secretariat.

(3) TheCommissionmayformaworkinggroup.

(4) Provisionsregardingtheorganizationalstructure,dutiesandfunctionsofthesecretariatandworkinggroupshallbefurtherregulatedinadecisionoftheCommission.

Part ThreeDuties

Article 35

ThedutiesoftheCommissionshallincludethefollowing:

a. assessagreements thatmay result inmonopolisticpracticesandorunfairbusinesscompetitionassetforthinArticle4uptoandincludingArticle16;

b. assessbusinessactivitiesandoractionsofbusinessactorswhichmaycausemonopolisticpracticesandorunfairbusinesscompetitionasstipulatedinArticle17uptoandincludingArticle24;


c. assesstheexistenceorabsenceoftheabuseofdominantpositionwhichmaycausemonopolisticpracticesandorunfairbusinesscompetitionassetforthinArticle25uptoandincludingArticle28;

d. undertakeactionsinaccordancewiththeCommission’sauthorityassetforthinArticle36;

e. provide advice and opinion concerning Government policies related to monopolisticpracticesandorunfairbusinesscompetition;

f. prepareguidelinesandorpublicationsrelatedtothisLaw;

g. submitperiodicreportsontheresultsoftheCommission’sworktothePresidentandthePeople’sLegislativeAssembly.

Part FourAuthorities

Article 36

TheCommission’sauthoritiesshallincludethefollowing:

a. receivereportsfromthepublicandorbusinessactorsregardingallegationsoftheexistenceofmonopolisticpracticesandorunfairbusinesscompetition;

b. conductresearchconcerningallegationsoftheexistenceofbusinessactivitiesandoractionsofbusinessactorswhichmaycausemonopolisticpracticesandorunfairbusinesscompetition;

c. conductinvestigationandorexaminationofallegationsofcasesofmonopolisticpracticesandorunfairbusinesscompetitionreportedbythepublicorbybusinessactorsordiscoveredbytheCommissionasaresultofitsresearch;

d. makeconclusionsregardingtheresultsofitsinvestigationandorexaminationastowhetherornotthereareanymonopolisticpracticesandorunfairbusinesscompetition;

e. summonbusinessactorsallegedofhavingviolatedtheprovisionsofthislaw;

f. summon and present witnesses, expert witnesses, and any persons deemed to haveknowledgeabouttheviolationoftheprovisionsofthislaw;

g. seek the assistanceof investigators topresent business actors,witnesses,expertwitnesses,oranypersonsasintendedinsub-articleseandf,whoarenotpreparedtoappearinresponsetotheCommission’ssummons;


h. requestthestatementofGovernmentinstitutionsrelatedtotheinvestigationandorexaminationofbusinessactorswhohaveviolatedtheprovisionsofthislaw;

i. obtain, examineandor assess letters, documentsor other instrumentsofevidenceforthepurposeofinvestigationandorexamination;

j. determineandstipulatetheexistenceornon-existenceof lossessufferedbyotherbusinessactorsorsociety;

k. notifythebusinessactorsallegedofhavingengagedinmonopolisticpracticesandorunfairbusinesscompetitionabouttheCommission’sdecisions;

l. imposeadministrativesanctionsonbusinessactorsviolatingtheprovisionsofthis Law.

Part Five

Funding

Article 37

ExpensesrelatedtotheperformanceoftheCommission’sdutiesshallbechargedtotheStateRevenuesandExpendituresBudgetandorothersourcespermittedbyapplicablelawsandregulations.

CHAPTER VIICASE HANDLING PROCEDURE

Article 38

(1) AnypersonhavingknowledgeoftheoccurrenceoforreasonablysuspectingthataviolationofthisLawhasoccurred,mayreportitinwritingtotheCommissionwithaclearstatementconcerningtheoccurrenceofviolation,attachingtheidentityofthereportingparty.

(2) ApartysufferinglossesasaresultoftheviolationofthisLawmayfileawrittenreport to the Commission with a complete and clear statement regarding the occurrenceofviolationandthelossesinflicted,attachingtheidentityofthereportingparty.

(3) Theidentityofthereportingpartyasintendedinparagraph(1)mustbekeptconfidentialbytheCommission.


(4) Thereportingprocedureasintendedinparagraph(1)andparagraph(2)shallbestipulatedfurtherbytheCommission.

Article 39

(1) BasedonthereportasintendedinArticle38paragraph(1)andparagraph(2),theCommissionshallbeobligatedtoconductapreliminaryexamination,andwithin30(thirty)daysafterreceivingthereportconcerned,theCommissionshallbeobligatedtodeterminewhetherornotfollow-upexaminationisrequired.

(2) Infollow-upexamination,theCommissionshallbeobligatedtoexaminethebusinessactoragainstwhomthereportwasfiled.

(3) TheCommissionshallbeobligatedtokeepconfidentialtheinformationobtainedfrombusinessactorsclassifiedascompanysecret.

(4) Ifdeemednecessary,theCommissionmayhearthestatementofwitnesses,expertwitnessesandorotherparties.

(5) Inconductingactivitiesasintendedinparagraph(2)andparagraph(4),membersof the Commission shall be provided with warrants.

Article 40

(1) TheCommissionmayconductexaminationofbusinessactors if there isanallegationoftheoccurrenceofviolationsofthisLaweventhoughnoreportisfiled.

(2) Examinationsasintendedinparagraph(1)shallbeconductedincompliancewiththeproceduresetforthinArticle39.

Article 41

(1) Businessactorsandorotherpartiesexamined shallbe required to submitinstrumentsofevidencerequiredintheinvestigationandorexamination.

(2) Businessactorsshallbeprohibitedfromrefusingtobeexamined,fromrefusingtoprovideinformationrequiredforinvestigationandorexamination,orfromimpedingtheinvestigationandorexaminationprocess.

(3) Violations of the provisions of paragraph (2) shall be submitted by the


Commissiontoacriminalinvestigatorforconductingcriminalinvestigationinaccordance with prevailing provisions.

Article 42

InstrumentsofevidenceininvestigationsbytheCommissionshallbeintheformof the following:

a. witness statement,

b. expert statement,

c. lettersandordocuments,

d. indication,

e. statement by business actors.

Article 43

(1) TheCommissionshallbeobligatedtocompletefollow-upexaminationwithin60(sixty)daysfromthestartoffollow-upexaminationasintendedinArticle39paragraph(1).

(2) Ifrequired,thetimeframeforfollow-upexaminationasintendedinparagraph(1)maybeextendedbynotmorethan30(thirty)days.

(3) TheCommissionshallbeobligatedtodeterminewhetherornotaviolationofthisLawoccurredwithin30(thirty)daysfromthecompletionoffollow-upexaminationasintendedinparagraph(1)orparagraph(2).

(4) TheCommission’sdecisionasintendedinparagraph(3)mustbereadoutinahearingopentothepublicandthebusinessactorconcernedmustbenotifiedforthwith thereof.

Article 44

(1) Within30(thirty)daysfromthetimeatwhichthebusinessactorconcernedreceivesnoticeabout theCommission’sdecisionas intended inArticle43paragraph(4),thebusinessactorconcernedshallbeobligatedtoimplement


suchdecisionandtosubmitareportontheimplementationofthesametothe Commission.

(2) ThebusinessactorconcernedmayappealtotheDistrictCourtbynolaterthan14(fourteen)daysafterreceivingnotificationoftheaforementioneddecision.

(3) Abusinessactornotappealingwithinthetimeframeasintendedinparagraph(2)shallbedeemedtohaveacceptedtheCommission’sdecision.

(4) In theeventthat theprovisionsofparagraph(1)andparagraph(2)arenotimplemented by the business actor concerned, the Commission shall submit suchdecisiontoacriminalinvestigatorforconductingacriminalinvestigationinaccordancewiththeprovisionsofprevailinglawsandregulations.

(5) TheCommission’sdecisionsasintendedinArticle43paragraph(4)shallserveassufficientinitialevidenceforacriminalinvestigatortoconductinvestigation.

Article 45

(1) TheDistrictCourtconcernedmustexamineappealsfiledbybusinessactorsasintendedinArticle44paragraph(2)within14(fourteen)daysasfromthereceipt of the appeal concerned.

(2) TheDistrictCourtmustrenderadecisionwithin30(thirty)daysasfromthecommencementoftheexaminationoftheaforementionedappeal.

(3) ApartyfilinganappealinrespectoftheDistrictCourt’sdecisionasintendedinparagraph(2),mayappealtotheSupremeCourtoftheRepublicofIndonesiawithin14(fourteen)days.

(4) TheSupremeCourtmustrenderadecisionwithin30(thirty)daysfromthetimeat which the appeal is received.

Article 46

(1) Intheeventthatthereisnoappeal,theCommission’sdecisionasintendedinArticle43paragraph(3)shallhavepermanentlegalforce.

(2) A stipulationon theexecutionof theCommission’sdecisionas intended inparagraph(1)shallberequestedfromtheDistrictCourt.


CHAPTER VIII SANCTIONS

Part One

Administrative Measures

Article 47

(1) TheCommissionshallbeauthorizedtoimposesanctionsintheformofadministrativemeasuresagainstbusinessactorsviolatingtheprovisionsofthisLaw.

(2) Administrativemeasuresasintendedinparagraph(1)maybeintheformofthe following:

a. stipulationontheannulmentofagreementsasintendedinArticle4uptoandincludingArticle13,Article15andArticle16;andor

b. ordertobusinessactorstoceaseverticalintegrationasintendedinArticle14;andor

c. order to business actors to cease activities proven to have caused monopolisticpracticesandorunfairbusinesscompetitionandorbeingharmfultosociety;andor

d. orderingbusinessactorstoceasetheabuseofdominantposition;andor

e. stipulationon theannulmentofmergersor consolidationsofbusinessentitiesandacquisitionofsharesasintendedinArticle28;andor

f. stipulationonthepaymentofcompensationforlosses;andor

g. impositionofafineofnotlessthanRp.1,000,000,000,-(Rupiahonebillion)andnotmorethanRp.25,000,000,000,-(Rupiahtwenty-fivebillion).

Part Two

Principal Criminal Sanctions

Article 48

(1) ViolationsoftheprovisionsofArticle4,Article9uptoandincludingArticle14,Article16uptoandincludingArticle19,Article25,Article27,andArticle28shallbesubjecttothecriminalsanctionofafineofnotlessthanRp25,000,000,000,-(Rupiahtwenty-fivebillion)andnotmorethanRp100,000,000,000,-(Rupiah


onehundredbillion),orthecriminalsanctionofimprisonmentasareplacementoffinefornolongerthan6(six)months.

(2) ViolationsoftheprovisionsofArticle5uptoandincludingArticle8,Article15,Article20uptoandincludingArticle24,andArticle26ofthisLawshallbesubjecttothecriminalsanctionofafineofnotlessthanRp.5,000,000,000,-(Rupiahfivebillion)ornotmorethanRp.25,000,000,000,-(Rupiahtwenty-fivebillion),oracriminalsanctionofimprisonmentasreplacementoffinefornolongerthan5(five)months.

(3) ViolationsoftheprovisionsofArticle41ofthisLawshallbesubjecttoafineofnot less thanRp.1,000,000,000,- (Rupiahonebillion)andnotmorethanRp.5,000,000,000,-(Rupiahfivebillion)orthecriminalsanctionofimprisonmentasreplacementoffinefornolongerthan3(three)months.

Part Three

Additional Criminal Sanctions

Article 49

IncompliancewiththeprovisionsofArticle10oftheCriminalCode,inadditiontothecriminalsanctionsassetforthinArticle48,additionalcriminalsanctionsmaybe imposed in the form of the following:

a. revocationofbusinesslicenses;or

b. prohibitionofbusinessactorsproventohaveviolatedthislawfromfillingthepositionofdirectororcommissionerforatleast2(two)yearsandfornolongerthan5(five)years;or

c. ordertoceasecertainactivitiesoractionscausinglossestootherparties.

CHAPTER IX MISCELLANEOUS PROVISIONS

Article 50

Excluded from the provisions of this law shall be the following:

a. actions and or agreements aimed at implementing applicable laws and regulations;or


b. agreements related to intellectual property rights, such as licenses, patents, trademarks,copyright,industrialproductdesign,integratedelectroniccircuits,andtradesecretsaswellasagreementsrelatedtofranchise;or

c. agreementsforthestipulationoftechnicalstandardsofgoodsandorserviceswhichdonotrestrain,andordonotimpedecompetition;or

d. agencyagreementswhichdonotstipulatetheresupplyofgoodsandorservicesatapricelevellowerthanthecontractedprice;or

e. cooperationagreements in thefieldof research forraisingor improvingthelivingstandardofsocietyatlarge;or

f. internationalagreementsratifiedbytheGovernmentoftheRepublicofIndonesia;or

g. export-orientedagreementsandoractionsnotdisruptingdomesticneedsandorsupplies;or

h. businessactorsofthesmall-scalegroup;or

i. activitiesofcooperativeswiththespecificaimofservingtheirmembers.

Article 51

Monopoly andor concentrationof activities related to theproduction andormarketingofgoodsandorservicesaffectingthelivelihoodofsocietyatlargeaswellasbranchesofproductionofstrategicimportancetothestateshallbestipulatedinalawandshallbeimplementedbyState-OwnedEnterprisesandorinstitutionsformed or appointed by the Government.

CHAPTER X TRANSITIONAL PROVISIONS

Article 52

(1) AsfromthetimeatwhichthisLawbecomeseffective,alllawsandregulationsregulatingor relatedtomonopolisticpracticesandorbusinesscompetitionshallbedeclaredas remaining ineffect insofarasnot contradictoryornotsuperseded by new ones by virtue of this Law.

(2) Businessactorshavingenteredintoagreementsandorconductingactivitiesandorundertakingactionsnotcomplyingwiththeprovisionsofthislawshallbegiven6(six)monthsfromthisLaw’scomingintoeffecttomakeadjustments.


CHAPTER XI CLOSING PROVISIONS

Article 53

ThisLawshallbecomeeffectivewithin1(one)yearasfromitsenactment.

For public cognizance, it is hereby ordered that this Lawbe promulgated byannouncementintheStateGazetteoftheStateoftheRepublicofIndonesia.

RatifiedinJakartaonMarch5,1999

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

sgd.

BACHARUDDINJUSUFHABIBIE

EnactedinJakartaOnMarch5,1999

STATE MINISTER SECRETARY OFSTATE OF THE REPUBLIC OF INDONESIA

sgd.

AKBARTANDJUNG

STATEGAZETTEOFTHEREPUBLICOFINDONESIAYEAR1999NUMBER 33

Issued as true copy

CABINET SECRETARIAT OF THE REPUBLIC OF INDONESIA Head of the Legislature Bureau I

LambockV.Nahattands

ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 31

ELUCIDATION ON THE LAW OF THE

REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999

CONCERNINGTHE PROHIBITION

OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION

32 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999


THE PRESIDENT OF THE REPUBLIC INDONESIA

ELUCIDATION ONTHE LAW OF THE REPUBLIC OF INDONESIA

NUMBER 5 YEAR 1999CONCERNING

THE PROHIBITION OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION

GENERALEconomicdevelopmentintheFirstLongTermDevelopmenthasresultedinsubstantialprogress, manifested in among other things the improvement of the people’s welfare. Theaforementionedprogressachieved indevelopmenthasbeen supportedbydevelopmentpoliciesinvariousfields,includingpoliciesinthefieldofeconomyasset forth in the Broad Outlines of State Policy and the Five Year Development Plan, as well as in various other economic policies.

DespitethesubstantialprogressachievedintheFirstLongTermDevelopment,asreflectedinhigheconomicgrowth,therearestillmanychallengesorunresolvedissues,especiallyineconomicdevelopment,alongsidethetrendofglobalizationintheeconomyandthedynamicsanddevelopmentofprivatebusinessessincetheearly1990s.

In reality, thebusinessopportunitiescreatedduring the last threedecadeshavenotbeenable toensure thatall levelsof societyparticipate indevelopment invarious economic sectors. The development of the private sector during the above mentionedperiodhasontheonehandbeenmarkedbyvariousformsofnotfullyappropriateGovernmentpoliciesleadingtomarketdistortions.Ontheotherhand,the development of the private sector has in fact been mainly the result of unfair businesscompetitionconditions.

The above described phenomena have developed and have been supported by the relationshipbetweendecision-makersandbusinessactors,eitherdirectlyorindirectly,leadingtothefurtherdeteriorationofthesituation.TheimplementationofnationaleconomyhasnotfullyadheredtothemandateofArticle33ofthe1945Constitution,andhasshownahighlymonopolistictendency.


Businessmenclosetotheeliteofpowerhaveobtainedexcessivefacilitiesresultingin thecreationofasocialgap.Theemergenceofconglomeratesandagroupofstrong businessmen not supported by the spirit of real entrepreneurship has been one of the factors which have caused the economic resilience to become extremely vulnerableanduncompetitive.

Inviewoftheabovesituationandconditions,thereisaneedforustostudyandreorganizebusinessactivitiesinIndonesia,enablingbusinessestogrowanddevelopinafairandappropriateway,leadingtothecreationofafairbusinesscompetitionclimate,andtoavoidtheconcentrationofeconomicpoweraroundcertainindividualsorgroups,amongotherthings, intheformofmonopolisticpracticesandunfairbusinesscompetitionharmfultosociety,whicharecontradictorytotheidealsofsocialjustice.

Therefore, it is necessary to formulate the LawConcerning theProhibitionofMonopolisticPracticesandUnfairBusinessCompetitionintendedtoupholdtheruleoflawandtoprovideequalprotectiontoeverybusinessactorinanefforttocreatefairbusinesscompetition.

This lawprovides for assurancesof legal certainty for stimulating further rapideconomic development in an effort to improve general welfare, as well as in implementationofthespiritandsoulofthe1945Constitution.

Foraneffectiveimplementationofthislawandimplementingregulationsthereofinaccordancewithitsprinciplesandobjectives,thereisaneedtoformaCommissionfortheSupervisionofBusinessCompetition,namelyanindependentinstitutionfreefromthe influenceofthegovernmentandotherparties,havingtheauthoritytoconductsupervisionofbusinesscompetitionandtoimposesanctions.Suchsanctionsshallbeintheformofadministrativemeasures,whereascriminalsanctionsshallbeundertheauthorityofthecourtofjustice.

Ingeneral, thesubstanceof theLawConcerningtheProhibitionofMonopolisticPracticesandUnfairBusinessCompetitionconsistsof6(six)partsbeingregulatednamely as follows:

1. prohibitedagreements;

2. prohibitedactions;

3. dominantposition;

4. CommissionfortheSupervisionofBusinessCompetition;

5. lawenforcement;

6. miscellaneous provisions.


This lawhasbeenformulatedbasedontheprinciplesofPancasilaandthe1945Constitution,andithasbeenbasedonhtprinciplesofeconomicdemocracywithdueobservanceoftheequilibriumbetweentheinterestsofbusinessactorsandthepublicinterestwiththeaimto:safe-guardpublicinterestandprotectconsumers;developaconducivebusinessclimatethroughthecreationoffairbusinesscompetition,andensurecertaintyinequalbusinessopportunityforeveryperson;preventmonopolisticpracticesandorunfairbusinesscompetitioncausedbybusinessactors;andcreateeffectivenessandefficiency inbusinessactivities inthecontextof improvingtheefficiencyofthenationaleconomyasoneoftheendeavorsinthecontextofenhancingthe people’s welfare.

ARTICLE BY ARTICLEArticle1

Sub-Article1 Self-explanatory




















Article2 Self-explanatory


Article4

Paragraph(1) Self-explanatory


Article5 Paragraph(1) Self-explanatory






Article9Agreementsmaybe verticalorhorizontal innature. Suchagreements areprohibitedbecausebusinessactorseliminateorreducecompetitionbydividingthemarketormarketallocation.Marketingterritoriesmaymeantheterritoryof the state of the Republic of Indonesia, or parts of the territory of the state of the Republic of Indonesia, for example regency, province, or other regional territories.Dividingmarketingterritoriesormarketallocationmeansdividingterritories with the aim of obtaining or supplying goods, services, or goods and services,determining theparties fromwhichgoods, services,orgoodsandservices may be obtained or supplied.

Article10






Article13 Paragraph(1) Self-explanatory


Article14

Referredtoascontrollingtheproductionofanumberofproductsbeingpartofaproductionchainwhicharenormallyreferredtoasverticalintegrationshallbethecontrolofaproductionprocessseriesofcertaingoodsfromupstreamtodownstreamoraprocesscontinuingforcertainservicesbycertainbusinessactors.Eventhoughverticalintegrationpracticesmayresultinlowpricedgoodsandservices, thesecancauseunfairbusinesscompetitionwhich isharmfultothebuildingblocksofthesociety’seconomy.Suchpracticesareprohibitedinsofarastheycauseunfairbusinesscompetitionandorareharmfultosociety.

Article15

Paragraph(1)Referred to as supplying shall include the procurement of sup- plies, either in the form of goods or services, in the context of sale and purchase, lease, leasepurchaseandleasingactivities.


Paragraph(3) Sub-Paragraph a Self-explanatory

Sub-Paragraph b Self-explanatory


Article17



Paragraph(2) Sub-Paragraph a Self-explanatory

Sub-Paragraph bReferred to as other business actors shall be business actors possessingsignificantcompetitivecapacityintherelevantmarket.

Sub-Paragraph c Self-explanatory

Article18



Article19

Sub-ArticleaIt is not allowed to reject or impede certain business actors in an unreasonable manner or for non-economic reasons, for example due to differenceinethnicgroup,race,socialstatus,andothers.

Sub-Articleb Self-explanatory

Sub-Articlec Self-explanatory

Sub-Articled Self-explanatory


Article21Unfairpracticesindeterminingproductioncostandothercostsshallbeviolationofprevailinglawsandregulationswiththeaimofobtainingproductionfactorcosts which are lower than the actual cost.


Article22Tendersshallbebidssubmittedtocontractcertainwork,fortheprocurementof goods, or the provision of services.



Article25

Paragraph(1)

Sub-Paragraph a Self-explanatory


Sub-Paragraph c Self-explanatory

Paragraph(2)



Article26

Sub-Articlea Self-explanatory

Sub-ArticlebCompanies shall be closely related if such companies support each other or areindirectcontactintheprocessofproduction,marketing,orproductionandmarketing.



Article27



Article28

Paragraph(1)Business entities shall be companies or forms of business, either incorporatedas legal entities (e.g., limited liability companies)ornotincorporatedas legal entities,engaging ina typeofbusinesswhich ispermanentandcontinuous innature,with thepurposeof generatingprofits.



Article29



Article30





Article31

Paragraph(1)The Chairperson and the Vice Chairperson of the Commission shall be elected from among and by Members of the Commission.



Paragraph(4)Extension of the term of membership in the Commission for the purpose ofavoidingavacancymaynotexceed1(one)year.

Article32





Sub-Articlee Self-explanatory

Sub-Articlef Self-explanatory

Sub-ArticlegNot having been convicted of a crime shall mean a person’s not having beenimposedwithacriminalsanctionduetoaseriouscriminalactorduetotheviolationofmorality.

Sub-Articleh Self-explanatory


Sub-ArticleiNotaffiliatedwithaparticularbusinessentityshallmeanthatasfromthetimeatwhich theperson concernedbecomes amemberof theCommission, such person does not act as:

1. a member of the board of commissioners or supervisors, or of the boardofdirectorsofacompany;

2. amemberofthemanagementorinspectionbodyofacooperative;

3. a party providing services to a company, such as consultant, public accountantandappraiser;

4. amajorityshareholderinacompany.

Article33




Sub-ArticledStated in the form of a statement by an authorised physician.


Sub-ArticlefDismissedduetothereasonof,amongotherthings,nolongermeetingtherequirementsforCommissionmembershipasintendedinArticle32.

Article34


Paragraph(2)Secretariat shallbe theorganizationalunit supportingorassisting theCommissionintheimplementationofitsduties.


Paragraph(3)WorkingunitshallbeaprofessionalteamappointedbytheCommissiontoassistintheimplementationofcertaintasksatacertaintime.


Article35







Sub-Articleg Self-explanatory

Article36








Sub-ArticlegInvestigatorshallbeaninvestigatorasintendedinLawNumber8Year1981.

Sub-Articleh Self-explanatory

Sub-Articlei Self-explanatory

Sub-Articlej Self-explanatory

Sub-Articlek Self-explanatory

Sub-Articlel Self-explanatory

Article37Inprinciple, theState is responsible for theoperational implementationoftheCommission’sdutiesbyprovidingsupportintheformoffundingthroughthe State Revenues and Expenditures Budget. However, bearing in mind the broadanddiversescopeandfieldoftheCommission’sduties,theCommissionmay obtain funds from other sources not contradictory to the prevailing laws and regulations,whicharenotbinding innatureandwillnot influence theCommission’s independence.

Article38






Article39






Article40



Article41



Paragraph(3)TheCommission shall submit to the investigators for investigationnotonlycriminalactsoractionsasintendedinparagraph(2)ofthisarticle,butalsotheprincipalcasesunderinvestigationandexaminationbytheCommission.

Article42







Article43



Paragraph(3)TheCommission’sdecisionmakingasintendedinparagraph(3)ofthisArticleshallbeconducted inaCouncilmeetingconsistingofat least3(three)Commissionmembers.

Paragraph(4)ReferredtoasnotifiedshallbeconveyinganexcerptfromtheCommission’sdecision to the business actor concerned.

Article44

Paragraph(1)30(thirty)daysshallbecountedasfromthereceiptoftheexcerptfromtheCommission’s decision by the business actor concerned or its legal proxy.






Article45





Article46



Article47


Paragraph(2)


Sub-Paragraph bCeasing vertical integration shall be implemented, amongotherthings, by annulment of the agreement, transfer of a part of the company to another business actor, or change of the form of productionseries.

Sub-Paragraph cTheordershallbetoceasecertainactivitiesorconduct,ratherthantheentirebusinessactivitiesofthebusinessactorconcerned.


Sub-Paragraph d Self-explanatory

Sub-Paragraph e Self-explanatory

Sub-Paragraph fCompensation for losses shall be granted to thebusiness actorconcernedandtootherpartieshavingsufferedaloss.

Sub-Paragraph g Self-explanatory

Article48




Article49




Article50








Sub-Articleg Self-explanatory

Sub-ArticlehReferred to as business actors of the small-scale group shall be as intended inLawNumber9Year1995concerningSmall-ScaleBusiness.

Sub-ArticleiReferred to as serving their members shall be providing services exclusively to their members and not to the public for the procurement of basic needs, productionfacilitiesrequirementsincludingcreditandrawmaterials,aswellasservicesforthemarketinganddistributingproductsofmemberswhichdonotresultinmonopolisticpracticesandorunfairbusinesscompetition.


Article52




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