DECREE

Providing for handling of violations of Law in the competition domain

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the December 3, 2004 Competition Law;

Pursuant to the July 2, 2002 Ordinance on Handling of Administrative Violations;

At the proposal of the Trade Minister,

Article 1.- Scope of regulation

1. This Decree provides for the handling of organizations and individuals that have intentionally or unintentionally committed acts of violation of the provisions of competition law.

2. Acts of violating competition law under the provisions of this Decree include:

a/ Acts of violating provisions on control of competition-restricting acts, including acts of violating provisions on competition restriction agreements, abuse of dominant market position, abuse of monopoly position and economic concentrations.

b/ Acts of violating provisions on unfair competition;

c/ Acts of violating other provisions of competition law.

Article 2.- Subjects of application

This Decree shall apply to the following organizations and individuals:

1. Business organizations and individuals (hereinafter collectively referred to as enterprises) and professional associations operating in Vietnam (hereinafter referred to as associations) specified in Article 2 of the Competition Law.

2. Other organizations and individuals committing acts specified in Section 5, Chapter II of this Decree.

Article 3.- Principles for handling violations of competition law

1. The handling of acts of violation of provisions on control of competition-restricting acts must abide by the following principles:

a/ All acts of violation must be promptly detected. The handling of acts of violation must be carried out quickly, fairly and thoroughly; all consequences caused by such acts must be remedied according to the provisions of law;

b/ The handling of acts of violation must follow the competition proceeding order and procedures provided for in Chapter III of the Government's Decree No. 116/2005/ND-CP of September 15, 2005, detailing the implementation of a number of articles of the Competition Law and comply with the provisions of this Decree;

c/ The handling of acts of violation must be carried out by competent persons according to their powers defined by law;

d/ An act of violation of competition law shall be handled only once; an enterprise that commits more than one act of violation shall be handled for each of such acts;

e/ Acts of violation showing criminal signs shall not be handled according to the provisions of this Decree.

2. The handling of acts of violation of provisions on unfair competition acts shall abide by the principles specified in Clause 1 of this Article and Article 3 of the Ordinance on Handling of Administrative Violations.

3. The handling of acts of violation of other provisions of competition law shall abide by the principles specified in Article 3 of the Ordinance on Handling of Administrative Violations.

Article 4.- Forms of handling of violations of competition law

1. The forms of handling of violations of competition laws comprise sanctioning forms and remedies.

2. For each act of violation of competition law, organizations or individuals shall be subject to one of the following principal sanctioning forms:

a/ Caution;

b/ Fine.

3. Depending on the nature and severity of their violations, organizations or individuals violating competition law may also be subject to the application of one or some of the following additional sanctioning forms:

a/ Withdrawal of business registration certificates, deprival of the right to use practice permits or certificates;

b/ Confiscation of exhibits and means employed for the commission of the violations.

4. In addition to sanctioning forms specified in Clauses 2 and 3 of this Article, enterprises violating competition law may be also subject to the application of one or some of the following remedies:

a/ Forcible restructuring of enterprises having abused their dominant market position;

b/ Forcible division, separation of enterprises which have been merged or consolidated; forcible sale of component(s) which enterprises have bought;

c/ Forcible public rectification;

d/ Forcible removal of illegal terms from the contract or business transaction;

e/ Forcible use or sale of inventions, utility solutions or industrial designs which have been bought and left unused;

f/ Forcible cancellation of measures of preventing and restraining other enterprises from entering the market or developing business;

g/ Forcible restoration of technical and technological conditions which enterprises have obstructed;

h/ Forcible removal of unfavorable conditions already imposed on customers;

i/ Forcible restoration of contractual terms which have been modified without plausible reasons;

j/ Forcible restoration of contracts which have been cancelled without plausible reasons.

Article 5.- Levels of fine for acts of violation of competition law

1. For acts of violation of provisions on control of competition-restricting acts, agencies competent to handle such acts may impose fines at the levels specified in Sections 1, 2 and 3, Chapter II of this Decree, which, however, must not exceed 10% of total turnover generated by the violating enterprises in the fiscal year preceding the year when the violations are committed.

Where the violating enterprise is newly established and has operated for under one fiscal year, total turnover generated in the fiscal year preceding the year of commission of the violation as stated in this Clause shall be turnover generated by the enterprise from the date of its establishment to the date the decision on official investigation of the violation is issued.

2. For acts of violation of provisions on unfair competition and of other provisions of competition law not falling into the cases specified in Clause 1 of this Article, competent agencies shall impose fines at the levels specified in Sections 4 and 5, Chapter II of this Decree.

Article 6.- Compensation for damage caused by acts of violation of competition law

1. Organizations or individuals that have committed acts of violation of competition law, thereby causing damage to State interests or legitimate rights and interests of other organizations or individuals, must pay compensation therefor.

2. The compensation for damage as provided for in Clause 1 of this Article shall comply with the provisions of civil law.

Article 7.- Bases for determining the extent of handling of acts of violation of competition law

When determining the extent of handling of each act of violation of competition law, competent agencies may base themselves on one or some of the following facts:

1. The extent of competition restriction caused by the act of violation.

2. The extent of damage caused by the act of violation.

3. The violators' capability of causing competition restriction.

4. The time of commission of the act of violation.

5. Profit earned from the commission of the act of violation.

6. Extenuating circumstances and aggravating circumstances as specified in Article 8 of this Decree.

Article 8.- Extenuating circumstances and aggravating circumstances

1. For acts of violations of provisions on control of competition-restricting acts and unfair competition acts, competent agencies may apply extenuating and aggravating circumstances specified in Section 6, Chapter III of Decree No. 116/2005/ND-CP of September 15, 2005, detailing the implementation of a number of articles of the Competition Law.

2. For acts of violation of other provisions of competition law, competent agencies may apply extenuating and aggravating circumstances specified in Articles 8 and 9 of the Ordinance on Handling of Administrative Violations.

Article 9.- Statute of limitations for lodging complaints about competition cases, statute of limitations for issuing investigation decisions in cases where the competition-managing agency detects signs of violation of competition law

1. The statute of limitations for lodging complaints about competition cases and the statute of limitations for issuing investigation decisions in cases where the competition-managing agency detects signs of violation of competition law as provided for in Clause 2, Article 65 of the Competition Law are two years as from the date of commission of acts of violation.

2. Within the period specified in Clause 1 of this Article, if organizations or individuals commit new acts of violation of competition law or deliberately shirk or obstruct the handling by competent agencies, the statute of limitations stated in Clause 1 of this Article shall be re-counted from the time new acts of violation of competition law are committed or from the time acts of shirking or obstructing the handling stop.

Section 1. ACTS OF VIOLATION OF PROVISIONS ON COMPETITION RESTRICTION AGREEMENTS

Article 10.- Acts of agreement to directly or indirectly fix prices of products or services

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the following acts:

a/ Agreement to apply a single price to some or all customers;

b/ Agreement to increase or decrease prices at a given level;

c/ Agreement to apply a common pricing formula;

d/ Agreement to sustain a fixed price rate of the relevant product;

e/ Agreement to offer no price discount or apply a uniform price discount;

f/ Agreement to offer credit quotas to customers;

g/ Agreement to offer no price decrease if other parties to the agreement are not notified thereof;

h/ Agreement to use a uniform price at the time when price negotiations start.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the acts specified in Clause 1 of this Article in one of the following cases:

a/ Relevant products or services are food, foodstuffs, medical equipment, medicines for human disease prevention and treatment, veterinary drugs, fertilizers, animal feeds, plant protection drugs, plant varieties, animal breeds, and medical and healthcare services;

b/ Violating enterprises act as organizers, inducing other subjects to participate in the agreement.

3. In addition to fines imposed under the provisions of Clauses 1 and 2 of this Article, violating enterprises may be subject to the application of one or some of the following additional sanctioning forms and remedies:

a/ Confiscation of exhibits and means employed for the commission of the violation, including confiscation of all profits earned from the commission of the violation;

b/ Forcible removal of illegal terms in the contract or business transaction concerned.

Article 11.- Acts of agreement to share outlets, sources of supply or products or services

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the following acts:

a/ Agreement on the volume or place for purchase and sale of products or services, or on the group of customers for each party to the agreement;

b/ Agreement to the effect that each party may purchase products or services only from one or some given sources.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the acts specified in Clause 1 of this Article in one of the cases specified in Clause 2, Article 10 of this Decree.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 3, Article 10 of this Decree.

Article 12.- Acts of agreement to restrict or control produced, purchased or sold quantities or volumes of products or services

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the following acts:

a/ Agreement to cut or reduce the produced, purchased or sold quantity or volume of products or services on a relevant market, compared to before;

b/ Agreement to fix the produced, purchased or sold quantity or volume of goods or services at a level sufficient to create their scarcity on a market.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the acts specified in Clause 1 of this Article in one of the cases specified in Clause 2, Article 10 of this Decree.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 3, Article 10 of this Decree.

Article 13.- Acts of agreement to restrict technical and technological development, restrict investments

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the following acts:

a/ Agreement to purchase inventions, utility solutions or industrial designs for destruction or non-use thereof;

b/ Agreement not to increase capital for production expansion or improvement of the product or service quality or for other expansion or development.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the acts specified in Clause 1 of this Article in one of the cases specified in Clause 2, Article 10 of this Decree.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 3, Article 10 of this Decree.

Article 14.- Acts of agreement to impose on other enterprises conditions on signing product or service purchase or sale contracts or to force other enterprises to accept obligations not directly connected with the object of such contracts

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the following acts:

a/ Agreement to impose one or some of the following pre-conditions before signing a contract:

- Restriction of production or distribution of other products; purchase or provision of other services not directly related to the commitments of the agent according to the provisions of law on agency;

- Restriction of the place for re-sale of products, except for products on the list of those subject to conditional business or restricted business according to the provisions of law;

- Restriction of customers who can purchase products for resale, except for products on the list of those subject to conditional business or restricted business according to the provisions of law;

- Restriction of the form and quantity of products to be supplied.

b/ Agreement binding another enterprise, when purchasing or selling a product or service with any enterprise being a party to the agreement, to purchase other products or services from a designated supplier or person or to perform one obligation or some obligations unnecessary for the contract performance.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement, which have a combined share of 30% or more on the relevant market, shall be imposed for one of the acts specified in Clause 1 of this Article in one of the cases specified in Clause 2, Article 10 of this Decree.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 3, Article 10 of this Decree.

Article 15.- Acts of agreement to prevent, restrain or prohibit other enterprises from entering the market or developing business

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement shall be imposed for one of the following acts:

a/ Agreement not to transact with enterprises being other than parties to the agreement;

b/ Agreement to request, appeal, induce one's customers not to purchase products from, sell products to, or not to use services of enterprises being non-parties to the agreement;

c/ Agreement to purchase or sell products or services at prices sufficient for rendering enterprises not being parties to the agreement unable to enter the relevant market;

d/ Agreement on request, appeal, induce distributors or retailers that are transacting with the parties to the agreement to discriminate, when purchasing or selling products, against enterprises not being parties to the agreement in a way that causes difficulties to these enterprises in consuming their products;

e/ Agreement to purchase, sell products or services at prices sufficient for rendering enterprises not being parties to the agreement unable to expand its business operation.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to the agreement shall be imposed for one of the acts specified in Clause 1 of this Article in one of the cases specified in Clause 2, Article 10 of this Decree.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 3, Article 10 of this Decree.

Article 16.- Acts of agreement to eliminate from the market enterprises not being parties to the agreement

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement shall be imposed for one of the following acts:

a/ Agreement not to enter into transactions with enterprises not being parties to the agreement while requesting, appealing or inducing their customers not to purchase from, or sell products to, or use services of, these enterprises;

b/ Agreement not to enter into transactions with enterprises not being parties to the agreement while purchasing or selling products or services at prices sufficient for rendering these enterprises to withdraw from the relevant market.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year when acts of violation are committed by each of enterprises being parties to the agreement shall be imposed for one of the acts specified in Clause 1 of this Article in one of the cases specified in Clause 2, Article 10 of this Decree.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 3, Article 10 of this Decree.

Article 17.- Acts of collusion to help one or all of the parties to an agreement to win bids for supply of products or provision of services

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement shall be imposed for one of the following acts in biddings:

a/ Agreement to the effect that one or more parties to the agreement withdraw from participating in the bidding or retract their bids already submitted so that one or more parties to the agreement win the bid;

b/ Agreement to the effect that one or more parties to an agreement cause difficulties to non-parties to the agreement, which participate in a bidding, by refusing to supply raw materials or to sign subcontracts or otherwise;

c/ Agreement to the effect that all parties to an agreement agree to offer non-competitive bids or competitive bids accompanied with conditions unacceptable to the bid inviter so as to pre-determine one or more parties that will win the bid;

d/ Agreement to the effect that all parties to an agreement pre-determine the number of times each party will win the bid within a given period of time.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each of enterprises being parties to an agreement shall be imposed for one of the acts specified in Clause 1 of this Article in one of the cases specified in Clause 2, Article 10 of this Decree.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 3, Article 10 of this Decree.

Section 2. ACTS OF VIOLATION OF PROVISIONS ON ABUSE OF DOMINANT MARKET POSITION, ABUSE OF MONOPOLY POSITION

Article 18.- Acts of selling products, providing services below total costs of production in order to eliminate competitors

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions or each enterprise belonging to a group of enterprises having dominant market positions shall be imposed for their acts of selling products or providing services below total costs of production in order to eliminate competitors.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article in one of the following cases:

a/ Relevant products or services are those specified at Point a, Clause 2, Article 10 of this Decree;

b/ Violating enterprises hold a share of 50% or more on the relevant market.

3. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by an enterprise belonging to a group of enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article in one of the following cases:

a/ Being the enterprise holding the biggest share among the group on the relevant market;

b/ Being the enterprise acting as organizer, inducing other enterprises in the group having dominant positions to jointly commit the violation.

4. In addition to fines imposed under the provisions of Clauses 1, 2 and 3 of this Article, enterprises violating provisions on abuse of dominant market positions may be subject to the application of one or some of the following additional sanctioning forms and remedies:

a/ Confiscation of exhibits and means employed for the commission of the violation, including confiscation of all profits earned from the commission of the violation;

b/ Forcible removal of illegal terms in the contract or business transaction concerned;

c/ Forcible restructuring of enterprises having dominant market positions.

Article 19.- Acts of imposing irrational purchase prices, sale prices of products or services or fixing minimum re-sale prices, causing damage to customers

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions or each enterprise belonging to a group of enterprises having dominant market positions shall be imposed for one of the following acts:

a/ Imposing irrational purchase prices, sale prices of products or services, causing damage to customers;

b/ Fixing the minimum resale price, causing damage to customers.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 2 of Article 18 of this Decree.

3. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises belonging to a group of enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 3 of Article 18 of this Decree.

4. In addition to fines imposed under the provisions of Clauses 1, 2 and 3 of this Article, enterprises violating provisions on abuse of dominant market positions may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 4, Article 18 of this Decree.

Article 20.- Acts of restricting production, distribution of products, services, limiting markets, obstructing technical and technological developments, causing damage to customers

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions or each enterprise of a group of enterprises having dominant market positions shall be imposed for one of the following acts:

a/ Cutting or reducing the volume of a product or service supplied on the relevant market compared to the previously supplied volume of the product or service while there is no significant fluctuation in the demand-supply relation; there is no economic crisis, natural calamity or enemy sabotage; there is no big technical incident; or there is no state of emergency;

b/ Fixing the supplied volume of a product or service at a level sufficient for creating a scarcity on the market;

c/ Stockpiling a product to destabilize the market;

d/ Supplying a product or service only within one or some certain geographical areas;

e/ Buying a product or service only from one or some certain supplying sources, except for the case where other supplying sources fail to meet reasonable conditions imposed by the buyer in conformity with normal practices;

f/ Buying an innovation, utility solution or industrial design for destruction or non-use;

g/ Threatening or compelling those who are doing a research for technical or technological development to stop or cancel such research.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 2 of Article 18 of this Decree.

3. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises of a group of enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 3 of Article 18 of this Decree.

4. In addition to fines imposed under the provisions of Clauses 1, 2 and 3 of this Article, enterprises violating provisions on abuse of dominant market positions may be subject to the application of one or some of the following additional sanctioning forms and remedies:

a/ Additional sanctioning forms and remedies specified in Clause 4, Article 18 of this Decree;

b/ Forcible use or sale of inventions, utility solutions or industrial designs which have been bought but left unused;

c/ Forcible cancellation of measures of preventing and restraining other enterprises from entering the market or developing business;

d/ Forcible restoration of technical and technological conditions which the enterprises have obstructed.

Article 21.- Acts of imposing different trading conditions under similar transaction conditions in order to create unfair competition

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions or each enterprise belonging to a group of enterprises having dominant market positions shall be imposed for their acts of discriminating against other enterprises regarding purchase or sale conditions, price, payment deadline and quantity in transactions of purchasing or selling products or services which are similar in value or characteristics so as to place one or some enterprises in a competition position more advantageous than other enterprises.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 2 of Article 18 of this Decree.

3. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises belonging to a group of enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 3 of Article 18 of this Decree.

4. In addition to fines imposed under the provisions of Clauses 1, 2 and 3 of this Article, enterprises violating provisions on abuse of dominant market positions may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 4, Article 18 of this Decree.

Article 22.- Acts of imposing conditions on other enterprises to sign contracts for purchase or sale of products or services or forcing other enterprises to accept obligations not directly related to the objects of contracts

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions or each enterprise belonging to a group of enterprises having dominant market positions shall be imposed for one of the following acts:

a/ Imposing the following pre-conditions before signing contracts for product or service purchase or sale:

- Restrictions on production or distribution of other products; purchase or provision of other services not directly related to the commitments of the agents according to the provisions of law on agency;

- Restrictions on places for resale of products, except for goods on the list of those subject to business conditions and goods subject to restricted business according to the provisions of law;

- Restrictions on customers that buy products for resale, except for goods on the list of those subject to business conditions and goods subject to restricted business according to the provisions of law;

- Restrictions on the form and quantity of products allowed to be supplied.

b/ Binding other enterprises, when purchasing from or selling products or services to any enterprise being a party to the agreement, to purchase another product or service from a designated supplier or person or to perform one or more obligations unnecessary for the contract performance.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 2 of Article 18 of this Decree.

3. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises belonging to a group of enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 3 of Article 18 of this Decree.

4. In addition to fines imposed under the provisions of Clauses 1, 2 and 3 of this Article, enterprises violating provisions on abuse of dominant market positions may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 4, Article 18 of this Decree.

Article 23.- Acts of preventing new competitors from entering the market

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions or each enterprise belonging to a group of enterprises having dominant market positions shall be imposed for one of the following acts:

a/ Requesting one's customers not to enter into transactions with new competitors;

b/ Threatening or forcing distributors and retail shops not to distribute products of new competitors;

c/ Selling products at prices sufficient for rendering competitors unable to enter the market, which, however, does not fall into the case specified in Clause 1, Article 19 of this Decree.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 2 of Article 18 of this Decree.

3. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises of a group of enterprises having dominant market positions shall be imposed for one of the acts specified in Clause 1 of this Article, in one of the cases specified in Clause 3 of Article 18 of this Decree.

4. In addition to fines imposed under the provisions of Clauses 1, 2 and 3 of this Article, enterprises violating provisions on abuse of dominant market positions may be subject to the application of one or some of the additional sanctioning forms and remedies specified in Clause 4, Article 18 of this Decree.

Article 24.- Acts of abusing monopoly positions

1. A fine of up to 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violations by enterprises having monopoly positions shall be imposed for one of the following acts:

a/ Acts specified in Clause 1, Article 18; Clause 1, Article 19; Clause 1, Article 20; Clause 1, Article 21; Clause 1, Article 22; and Clause 1, Article 23 of this Decree;

b/ Imposing unfavorable conditions on customers;

c/ Unilaterally modifying or canceling signed contracts without having to notify in advance customers thereof and without facing any penalty;

d/ Unilaterally modifying or canceling signed contracts on the basis of one or more grounds not related to the conditions necessary for the continued performance of the contract, without facing any penalty.

2. In addition to fines imposed under the provisions of Clause 1 of this Article, enterprises abusing their monopoly positions may be subject to the application of one or some of the following additional sanctioning forms and remedies:

a/ Confiscation of exhibits and means employed for the commission of the violation, including all profits earned from the commission of the violation;

b/ Forcible removal of illegal terms from the contract or business transaction;

c/ Forcible restoration of technical and technological conditions which the enterprise have obstructed;

d/ Forcible removal of unfavorable conditions already imposed on customers;

e/ Forcible restoration of contractual terms which have been modified without plausible reasons;

f/ Forcible restoration of contracts which have been cancelled without plausible reasons.

Section 3. ACTS OF VIOLATION OF PROVISIONS ON ECONOMIC CONCENTRATIONS

Article 25.- Banned acts of merger of enterprises

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by merging enterprises and merged enterprises shall be imposed for acts of merger banned under the provisions of Article 18 of the Competition Law.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by merging enterprises and merged enterprises shall be imposed for acts of merger specified in Clause 1 of this Article in cases where merging enterprises compel merged enterprises to merge.

3. In addition to fines imposed under the provisions of Clauses 1 and 2 of this Article, merging enterprises may be forced to be divided or separated into merged enterprises and merging ones as before merger.

Article 26.- Banned acts of consolidation of enterprises

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by consolidated enterprises shall be imposed for acts of consolidation banned under the provisions of Article 18 of the Competition Law.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by consolidated enterprises shall be imposed for acts of merger specified in Clause 1 of this Article in cases where such consolidation has resulted in significant increases in product or service prices on the relevant market.

3. In addition to fines imposed under the provisions of Clauses 1 and 2 of this Article, consolidated enterprises may be subject to the application of one or some of the following additional sanctioning forms and remedies:

a/ Withdrawal of business registration certificates already granted to consolidated enterprises;

b/ Forcible division or separation of consolidated enterprises.

Article 27.- Banned acts of acquisition of enterprises

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by acquiring enterprises shall be imposed for acts of acquisition of part or all of assets of other enterprises banned under the provisions of Article 18 of the Competition Law.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by acquiring enterprises shall be imposed for acts of acquisition specified in Clause 1 of this Article in cases where acquiring enterprises compel acquired enterprises to sell all or part of their assets.

3. In addition to fines imposed under the provisions of Clauses 1 and 2 of this Article, acquiring enterprises may be forced to sell the assets that they have acquired.

Article 28.- Banned acts of joint venture among enterprises

1. A fine of up to 5% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each party to the joint venture concerned shall be imposed for acts of acquisition of part or all of assets of other enterprises banned under the provisions of Article 18 of the Competition Law.

2. A fine of between 5% and 10% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by each party to the joint venture concerned shall be imposed for acts of joint venture specified in Clause 1 of this Article in cases where their joint ventures have resulted in significant product or service price increases on the relevant market.

3. In addition to fines imposed under the provisions of Clauses 1 and 2 of this Article, joint-venture enterprises may have their business registration certificates withdrawn.

Article 29.- Acts of failure to notify economic concentrations

A fine of between 1% and 3% of total turnover generated in the fiscal year preceding the year of commission of acts of violation by enterprises specified in Clause 1, Article 25; Clause 1, Article 26; Clause 1, Article 27; and Clause 1, Article 28 of this Decree shall be imposed for acts of economic concentration without performing the obligation to notify thereof under the provisions of Article 20 of the Competition Law.

Section 4. ACTS OF VIOLATION OF PROVISIONS ON UNFAIR COMPETITION

Article 30.- Acts of misleading indication

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for one of the following acts:

a/ Using instructions containing information causing confusions about trade names, business mottoes, business logos, packings, geographical indications to mislead customers about goods or services of their own and other enterprises for the purpose of competition;

b/ Trading in products or services using misleading indications as specified at Point a of this Clause.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for acts of misleading indication specified in Clause 1 of this Article in one of the following cases:

a/ Relevant products or services are those specified at Point a, Clause 2, Article 10 of this Decree;

b/ Products or services are circulated or supplied in two or more provinces or centrally run cities;

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to the application of one or some of the following additional sanctioning forms and remedies:

a/ Confiscation of exhibits and means employed for the commission of the violation, including all profits earned from the commission of such violation;

b/ Forcible public rectification.

Article 31.- Acts of infringement upon business secrets

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for one of the following acts:

a/ Accessing and collecting information belonging to business secrets by counteracting the security measures applied by lawful owners of such business secrets;

b/ Disclosing, using information belonging to business secrets without permission of owners of such business secrets;

c/ Breaching security contracts or deceiving or taking advantage of the trust of persons having the security duty in order to access, collect or disclose information belonging to business secrets of owners of such business secrets;

d/ Accessing, collecting information belonging to business secrets of other persons when such persons carry out procedures according to the provisions of law on business, carry out procedures for product circulation, or by counteracting the security measures applied by state agencies, or using such information for business purposes or for application for licenses relating to business or product circulation.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for acts of infringing upon business secrets specified in Clause 1 of this Article in one of the following cases:

a/ Using business secrets for production and circulation of products or provision of services in two or more provinces or centrally run cities;

b/ Disclosing, supplying business secrets to competitors of owners of such business secrets.

3. In addition to fines imposed under Clause 1 of this Article, violating enterprises may be subject to confiscation of exhibits and means employed for the commission of the violation, including all profits earned from the commission of such violation.

Article 32.- Acts of constraint in business

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for acts of constraint of customers or business partners of other enterprises by threatening or forcing them to refrain from or stop conducting transactions with such enterprises.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for acts of constraint in business specified in Clause 1 of this Article in case of constraint of the biggest customers or business partners of competitors.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to confiscation of exhibits and means employed for the commission of the violation, including all profits earned from the commission of such violation.

Article 33.- Acts of discrediting other enterprises

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for acts of indirectly issuing untruthful information on other enterprises, badly affecting the latter's reputation, financial status and business operations.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for acts of directly issuing untruthful information on other enterprises, badly affecting the latter's reputation, financial status and business activities.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to one or some of additional sanctioning forms and remedies specified in Clause 3, Article 30 of this Decree.

Article 34.- Acts of disturbing business operations of other enterprises

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for acts of disturbing business operations of other enterprises by directly or indirectly preventing, disrupting the latter's business operations.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for acts of disturbing business operations of other enterprises, making the latter unable to carry out their business operations in a normal way.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to one or some of additional sanctioning forms and remedies specified in Clause 3, Article 30 of this Decree.

Article 35.- Acts of advertisement for unfair competition purposes

1. A fine of between VND 15,000,000 and VND 25,000,000 shall be imposed for one of the following advertisement acts:

a/ Comparing their products or services directly with those of the same kind of other enterprises;

b/ Imitating other advertising products to mislead customers;

c/ Issuing false or misleading information to customers on one of the following contents:

- Prices, quantities, quality, utilities, designs, categories, packings, date of manufacture, use duration, product origin, manufacturers, places of manufacture, processors, places of processing;

- Usage, mode of servicing, warranty duration;

- Other false or misleading information.

2. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for one of the acts specified in Clause 1 of this Article in one of the following cases:

a/ Relevant products or services are those specified at Point a, Clause 2, Article 10 of this Decree;

b/ Advertisement is conducted in two or more provinces or centrally run cities.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating enterprises may be subject to one or some of additional sanctioning forms and remedies specified in Clause 3, Article 30 of this Decree.

Article 36.- Acts of sale promotion for unfair competition purposes

1. A fine of between VND 15,000,000 and VND 25,000,000 shall be imposed for one of the following advertisement acts:

a/ Organizing sale promotion with prize frauds;

b/ Organizing sale promotion which is dishonest or causes confusion about products or services in order to cheat customers;

c/ Discriminating between similar customers at different sale promotion places under the same sale promotion program;

d/ Presenting products free to customers for trial use but requesting customers to use their goods in exchange for similar goods manufactured by other enterprises and currently used by such customers.

2. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for one of the acts specified in Clause 1 of this Article in one of the following cases:

a/ Products or services under promotion are those specified at Point a, Clause 2, Article 10 of this Decree;

b/ Promotion is organized in two or more provinces or centrally run cities.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, enterprises that have carried out sale promotion activities for unfair competition may be subject to one or some of additional sanctioning forms and remedies specified in Clause 3, Article 30 of this Decree.

Article 37.- Acts of discrimination by associations

1. A fine of between VND 15,000,000 and VND 25,000,000 shall be imposed for one of the following advertisement acts:

a/ Refusing to admit enterprises eligible for admission or refusing to allow enterprises to withdraw from the associations in a discriminatory way, placing such enterprises at a competitive disadvantage;

b/ Irrationally restricting business activities or other business-related activities of member enterprises.

2. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for one of the acts specified in Clause 1 of this Article in one of the following cases:

a/ Having committed acts of violation many times against one enterprise;

b/ Having committed acts of violation against many enterprises at a time;

c/ Having imposed irrational restrictions, causing member enterprises to withdraw from the associations.

Article 38.- Illegal multi-level sale acts

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on multi-level sale enterprises for one of the following acts:

a/ Requesting those who wish to participate to pay a deposit for the right to participate in the multi-level sale network;

b/ Requesting those who wish to participate to buy an initial volume of goods or pay a sum of money for the right to participate in the multi-level sale network;

c/ Requesting those who wish to participate to pay a sum of money or any charge for attending training courses, workshops, social activities or otherwise for the right to participate in the multi-level sale network, except for expenses for documents specified in Clause 2, Article 6 of the Government's Decree No. 110/2005/ND-CP of August 24, 2005, on management of multi-level sale;

d/ Not committing to allow participants to return products and receive the sums of money already transferred to the enterprises as provided for in Article 11 of the Government's Decree No. 110/2005/ND-CP of August 24, 2005, on management of multi-level sale;

e/ Obstructing participants to return products as result of termination of contracts for participation in multi-level sale;

f/ Giving participants commissions, bonuses or other economic benefits which are gained mostly from the enticement of other people to participate in the multi-level sale network;

g/ Supplying false information on the benefits of the participation in the multi-level sale network in order to entice other people to participate in the multi-level sale;

h/ Supplying false information on the nature and utilities of goods in order to entice other people to participate in the multi-level sale.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed for one of the acts specified in Clause 1 of this Article in cases where multi-level sale activities are carried out in two or more provinces or centrally run cities.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, enterprises that have carried out sale promotion activities for unfair competition may be subject to one or some of additional sanctioning forms and remedies specified in Clause 3, Article 30 of this Decree.

Section 5. ACTS OF VIOLATION OF OTHER PROVISIONS OF COMPETITION LAW

Article 39.- Acts of violation of provisions on supply of information and documents

1. A caution shall be served or a fine of between VND 500,000 and VND 1,000,000 shall be imposed for one of the following acts:

a/ Failing to supply or supplying insufficient information and documents to one's knowledge at the request of competent agencies;

b/ Supplying information and documents later than as requested by competent agencies;

c/ Deliberately supplying false information or documents or distorting information or documents;

d/ Forcing other persons to supply false information or documents;

e/ Hiding or destroying information and documents relating to competition cases.

2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed for one of the acts specified in Clause 1 of this Article in cases where information or documents requested to be supplied are specially important for the correct settlement of competition cases.

3. In addition to fines imposed under the provisions of Clauses 1 and 2 of this Article, violating organizations or individuals may be forced to supply sufficient information and documents.

Article 40.- Acts of violation of other provisions concerning the process of investigation and handling of competition cases

1. A caution shall be served or a fine of between VND 500,000 and VND 1,000,000 shall be imposed for one of the following acts:

a/ Intentionally or unintentionally disclosing information or documents classified as investigation secrets;

b/ Causing disturbances at hearings.

2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed for one of the acts specified in Clause 1 of this Article in cases where disclosed information or documents are specially important for the correct settlement of competition cases.

3. In addition to fines imposed under Clauses 1 and 2 of this Article, violating organizations or individuals shall have exhibits and means employed for the commission of their violations confiscated.

Article 41.- Acts of agreement on competition restriction or economic concentration committed before exemption-granting decisions are issued by competent agencies

1. A fine of between VND 30,000,000 and VND 50,000,000, which, however, must not exceed 3% of total turnover generated in the year preceding the year of commission of acts of violation by each of enterprises being parties to an competition restriction agreement, which have a combined share of 30% or more on the relevant markets, shall be imposed for competition-restricting acts eligible for exemptions under the provisions of Article 10 of the Competition Law pending the issuance of exemption-granting decisions by the Trade Minister.

2. A fine of between VND 30,000,000 and VND 50,000,000, which, however, must not exceed 3% of total turnover generated in the year preceding the year of commission of acts of violation by merging enterprises and merged enterprises, shall be imposed for acts of merger eligible for exemptions under the provisions of Article 19 of the Competition Law, pending the issuance of exemption-granting decisions by the Prime Minister or the Trade Minister.

3. A fine of between VND 30,000,000 and VND 50,000,000, which, however, must not exceed 3% of total turnover generated in the year preceding the year of commission of acts of violation by consolidated enterprises, shall be imposed for acts of consolidation eligible for exemptions under the provisions of Article 19 of the Competition Law, pending the issuance of exemption-granting decisions by the Prime Minister or the Trade Minister.

4. A fine of between VND 30,000,000 and VND 50,000,000, which, however, must not exceed 3% of total turnover generated in the year preceding the year of commission of acts of violation by acquiring enterprises, shall be imposed for acts of acquisition eligible for exemptions under the provisions of Article 19 of the Competition Law, pending the issuance of exemption-granting decisions by the Prime Minister or the Trade Minister.

5. A fine of between VND 30,000,000 and VND 50,000,000, which, however, must not exceed 3% of total turnover generated in the year preceding the year of commission of acts of violation by joint venture parties, shall be imposed for acts of joint venture eligible for exemptions under the provisions of Article 19 of the Competition Law, pending the issuance of exemption-granting decisions by the Prime Minister or the Trade Minister.

Section 1. COMPETENCE TO HANDLE VIOLATIONS OF COMPETITION LAW

Article 42.- Powers of the competition-managing agency and its head

1. For acts of violation of provisions on unfair competition and other acts of violation of other provisions of competition law specified in Section 5, Chapter II of this Decree, the competition-managing agency shall have the following powers:

a/ To issue cautions;

b/ To impose fines;

c/ To confiscate exhibits and means employed in the commission of violations;

d/ To force violators to make public rectification.

2. The head of competition-managing agency shall have powers to decide to apply, change or cancel administrative preventive measures pending transfer of competition case dossiers to the Competition Council for handling.

Article 43.- Powers of the Competition Council, competition case-handling panels

For acts of violations of provisions on control of competition-restricting acts, the Competition Council and competition case-handling panels shall have the following powers:

1. To issue cautions.

2. To impose fines.

3. To confiscate exhibits and means employed in the commission of violations.

4. To apply measures specified at Points c, d, e, f, g, h, i and j, Clause 4, Article 4 of this Decree.

5. To request competent agencies to withdraw business registration certificates; to deprive of the right to use practice certificates or permits.

6. To request competent agencies to apply measures specified at Points a and b, Clause 4, Article 4 of this Decree.

Article 44.- Powers of the chairman of the Competition Council

The chairman of the Competition Council shall have powers to decide to apply, change or cancel administrative preventive measures after receiving competition case dossiers.

Article 45.- Powers of other agencies

Other agencies' powers to sanction acts of violation of provisions on unfair competition related to intellectual property rights shall be defined under the provisions of law on handling of administrative violations.

Section 2. PROCEDURES FOR HANDLING VIOLATIONS OF COMPETITION LAW

Article 46.- Procedures for handling of violations of competition law

Procedures for handling of violations of competition law comprise the following procedures:

1. Procedures for handling of violations of provisions on control of competition-restricting acts and unfair competition.

2. Procedures for application, change and cancellation of administrative preventive measures.

3. Procedures for handling of violations of other provisions of competition law.

Article 47.- Procedures for handling of violations of provisions on control of competition-restricting acts and unfair competition

The handling of acts of violation of provisions on control of competition-restricting acts and unfair competition must follow the order and procedures in competition proceedings provided for in Chapter V of the Competition Law and the provisions of Chapter III of the Government's Decree No. 116/2005/ND-CP of September 15, 2005, detailing the implementation of a number of articles of the Competition Law.

Article 48.- Procedures for application, change and cancellation of administrative preventive measures

Procedures for application, change and cancellation of administrative preventive measures shall comply with the provisions of Article 61 of the Competition Law and the provisions of Section 7, Chapter III of the Government's Decree No. 116/2005/ND-CP of September 15, 2005, detailing the implementation of a number of articles of the Competition Law.

Article 49.- Making of records on acts of violation of other provisions of competition law

1. Upon detecting acts of violation of other provisions of competition law specified in Section 5, Chapter II of this Decree, competent persons must order prompt termination of such acts and make records thereon:

2. A record shall contain the following details:

a/ Date and place of making of the record;

b/ Full name, position of the record maker;

c/ Full name, address, occupation of the violating individual or name and address of the violating organization;

d/ Date and place of commission of the violation;

e/ An account of the act of violation;

f/ Measures to prevent the administrative violation (if any);

g/ Conditions of exhibits and means seized (if any);

h/ Statements of the violating individual or the representative of the violating organization;

i/ Full names, addresses of witnesses, damaged persons or representatives of damaged organizations (if any).

3. A record must be made in at least two copies, and signed by its maker and the violating individual or the representative of the violating organization; if there are witnesses, damaged persons or representatives of damaged organizations, such persons must also sign the record; where a record consists of many pages, the persons mentioned in this Clause must sign on each of such pages. If the violating individual, the representative of the violating organization, a witness, a damaged person or a representatives of a damaged organization refuses to sign the record, the record maker must clearly write the reason therefor in the record.

4. One copy of the completed record must be handed to the violating individual or organization; if the violation falls beyond the handling power of the record maker, he/she must send the record to a competent person for handling.

Article 50.- Time limit for issuance of decisions on handling violations of other provisions of competition law

1. The time limit for issuance of decisions on handling violations of other provisions of competition law is 10 days, as from the date of making of records on the violations; this time limit shall be 30 days for complicated cases.

2. Where it is necessary to have more time for verifying and collecting evidence, competent persons must report in writing such to their immediate superiors, ask for permission to extend this time limit only once for no more than 30 days; extension must be decided in writing. Beyond this time limit, persons with handling competence must not issue violation-handling decisions. If violation-handling decisions are not issued within this time limit due to their faults, they shall be handled according to the provisions of law.

Article 51.- Decisions on handling violations of other provisions of competition law

1. A decision on handling a violation of other provisions of competition law shall contain the following details:

a/ Date of issuance of the decision;

b/ Full name and position of the decision maker;

c/ Full name, address and occupation of the violating individual or name and address of the violating organization;

d/ Act of violation; circumstances related to the settlement of the violation; applied articles and clauses of legal documents;

e/ The principal sanctioning form, additional sanctioning form (if any), remedies (if any);

f/ Time and place for execution of the decision and signature of the decision maker;

g/ The right to complain about the decision according to the provisions of law.

2. Decisions on handling violations of other provisions of law must clearly state that the handled individuals or organizations shall be forced to execute the decisions if they do not voluntarily comply with them.

3. Decisions on handling violations of other provisions of law shall take effect from the date of their signing, unless other effective dates are indicated therein.

4. Decisions on handling violations of other provisions of law must be sent to handled individuals or organizations and fine-collecting agencies within 3 working days after the date such decisions are issued.

Article 52.- Transfer of dossiers in cases where competition cases show criminal signs

If seeing that acts of violation show criminal signs, competent agencies must transfer dossiers, exhibits, and means employed in the violations to criminal proceeding-conducting agencies according to the provisions of Article 94 of the Competition Law. Where violation-handling decisions have been issued, the issuing agencies must issue decisions to cancel such decisions. Within 3 working days after canceling violation-handling decisions, the issuing agencies must transfer dossiers of the violations to criminal proceeding-conducting agencies.

Section 3. PROCEDURES FOR EXECUTING COMPETITION CASE-HANDLING DECISIONS, DECISIONS ON HANDLING VIOLATIONS OF OTHER PROVISIONS OF COMPETITION LAW

Article 53.- Compliance with competition case-handling decisions, decisions on handling violations of other provisions of competition law

1. Enterprises handled for violations must comply with competition case-handling decisions of competition case-handling panels or the competition-managing agency within 30 days as from the date such decisions take legal effect.

2. Organizations or individuals handled for violations of other provisions of competition law in Section 5, Chapter II of this Decree must comply with decisions on handling violations of other provisions of competition law within 10 days as from the date they are handed over such decisions.

3. At the expiration of the time limit specified in Clause 1 or Clause 2 of this Article, if the handled organizations or individuals fail to voluntarily comply with the decisions, forcible execution of such decisions shall be applied to them under the provisions of Articles 55 and 56 of this Decree.

Article 54.- Place of payment of fines

Organizations and individuals that are fined under competition case-handling decisions or decisions on handling of violations of other provisions of competition law must pay fines at State treasuries as indicated in such decisions.

Article 55.- Forcible execution of competition case-handling decisions

1. After the expiration of the time limit specified in Clause 1, Article 53 of this Decree, if organizations or individuals handled for violations fail to voluntarily comply with competition case-handling decisions or do not initiate lawsuits before courts under the provisions of Section 7, Chapter V of the Competition Law, the parties in favor of whom the decisions are executed may make written requests, asking competent agencies defined in Clause 2 or 3 of this Article to organize the execution of the decisions which fall within the scope of the functions, tasks and powers of such agencies.

2. Competent agencies shall have to withdraw business registration certificates, deprive of practice permits or certificates they have granted to the enterprises violating provisions of competition law at the request of competition case-handling panels made in competition case-handling decisions.

3. Other competent agencies shall have to organize the application of the following measures: forced restructuring of enterprises abusing dominant market positions, division or separation of merged or consolidated enterprises or forced sale of purchased enterprise sections at the request of competition case-handling panels made in competition case-handling decisions.

4. Civil judgment enforcement agencies of provinces or centrally run cities where the parties that must comply with competition case-handling decisions have their head offices, places of residence or property shall have to organize the execution of such decisions' property-related contents at the request of the parties in favor of whom such decisions are executed.

Article 56.- Forcible execution of decisions on handling violations of other provisions of competition law

After the expiration of the time limit specified in Clause 2, Article 53 of this Decree, if organizations or individuals handled for violations fail to voluntarily comply with decisions on handling of violations of other provisions of competition law, they shall be subject to forcible execution according to the procedures provided for in Articles 66 and 67 of the Ordinance on Handling of Administrative Violations and Decree No. 37/2005/ND-CP of March 18, 2005, providing for procedures for application of measures to forcible execution of decisions on sanctioning of administrative violations.

Article 57.- Complaints, denunciations

1. Organizations or individuals handled for violations of competition law or their lawful representatives may lodge complaints with competent agencies about competition case-handling decisions or decisions on handling violations of other provisions of competition law issued by competition case-handling panels or the competition-managing agency when they have grounds to believe that such decisions are illegal and harmful to their legitimate rights and interests.

2. Organizations or individuals subject to the application of administrative preventive measures may lodge complaints with competent agencies about decisions on application of such measures issued by the chairman of the Competition Council or the head of the competition-managing agency when they have grounds to believe that such decisions are illegal and harmful to their legitimate rights and interests.

3. Every citizen may denounce to competent agencies acts of violation committed in the process of handling of violations of competition law, causing damage or threatening to cause damage to State interests or legitimate rights and interests of agencies, organizations or individuals.

4. All organizations or individuals that have made untruthful complaints or denunciations, thus affecting the prestige of the complained or denounced persons shall be handled according to the provisions of law.

Article 58.- Settlement of complaints about competition case-handling decisions issued by competition case-handling panels or the competition-managing agency

The settlement of complaints about competition case-handling decisions issued by competition case-handling panels or the competition-managing agency shall comply with the provisions of Section 7, Chapter V of the Competition Law and those of Section 10, Chapter III of the Government's Decree No. 116/2005/ND-CP of September 15, 2005, detailing the implementation of a number of articles of the Competition Law.

Article 59.- Settlement of complaints about decisions on handling violations of other provisions of competition law, decisions on application of administrative preventive measures

The settlement of complaints about decisions on handling violations of other provisions of competition law, decisions on application of administrative preventive measures shall comply with the provisions of law on complaints and denunciations.

Article 60.- Settlement of denunciations

The settlement of citizens' denunciations on acts of violation committed in the process of handling of violations of competition law shall comply with the provisions of law on complaints and denunciations.

Article 61.- Initiation of administrative lawsuits

1. If disagreeing with complaint-settling decisions of competent agencies under the provisions of Article 58 of this Decree, the related parties may initiate administrative lawsuits concerning some or all of the contents of such decisions according to the provisions of Article 115 of the Competition Law.

2. If disagreeing with complaint-settling decisions of competent agencies under the provisions of Article 59 of this Decree, the related parties may initiate administrative lawsuits concerning some or all of the contents of such decisions according to the provisions of law on complaints and denunciations and procedures for settlement of administrative cases.

Article 62.- Implementation effect

This Decree takes effect 15 days after its publication in "CONG BAO."

Article 63.- Implementation responsibilities

1. The Trade Minister shall have to organize the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of Government-attached agencies, and presidents of People's Committees of provinces and centrally run cities shall have to implement this Decree.