The Future Of Selective Distribution Systems In Egypt Following The Egyptian Competition Authority's Apple Decision

The recent decision by the Egyptian Competition Authority (ECA) concerning the permissibility of restrictive distribution contracts may have far-reaching consequences for the distribution of branded products in Egypt. At the same time, it testifies to the ECA's increasingly active role in addressing anti-competitive practices.

The Decree is the result of a two-year investigation into Apple's sale and supply practices. According to the ECA, Apple appointed its UAE-based Middle East regional distributor to supply Apple products to three Egyptian distributors, and obliged Apple retailers to source products from one of these local authorized distributors.

It was found that the prices of Apple products in the Egyptian market, including the iPhone, iWatch and MacBook, are in many cases up to 50 percent higher than the prices for the same products in other Middle East countries. The ECA confirmed that the prices of Apple products are "unjustifiably" higher in Egypt,