Forcing another enterprise’s business partners with threatening behavior to force them not to transact with that enterprise is an act of unfair competition?

1. What is unfair competition behavior?

According to Clause 6, Article 3 of the Competition Law 2018, the regulations on unfair competition behavior are:

Unfair competition behavior is an enterprise’s behavior that is contrary to the principles of good faith, honesty, commercial practices and other standards in business, causing damage or may cause damage to the rights and interests legality of other businesses.

2. Prohibited acts of unfair competition?

According to Article 45 of the Competition Law 2018 provisions on prohibited acts of unfair competition are as follows:

“Article 45. Prohibited acts of unfair competition

1. Infringement of confidential business information in the following forms here:

a) Accessing and collecting confidential business information by opposing the security measures of the owner of that information;

b) Disclosing and using confidential business information without the permission of the owner of that information.

2. Coercing customers and business partners of other enterprises by threatening behavior or coerce them not to transact or stop transacting with that enterprise.

3. Providing untruthful information about another enterprise by directly or indirectly providing untruthful information about that enterprise that adversely affects the reputation, financial status or business operations of that enterprise.

4. Disrupting the business operations of other enterprises by directly or indirectly hindering or disrupting legitimate business activities of that enterprise.

5. Illegally luring customers in the following forms:

a) Providing false or misleading information to customers about the business or the goods, services, promotions, and transaction conditions related to the goods and services that the business provides to attract customers of other businesses;

b) Compare your goods and services with goods and services of the same type from other enterprises but cannot prove the content.

6. Selling goods or providing services below total cost leads to or has the potential to lead to the elimination of other businesses trading in the same type of goods or services.

7. Other acts of unfair competition prohibited by other laws.”

Thus, the act of company B forcing you to terminate the contract with company A, otherwise it will stop doing business with you is a case of forcing customers and business partners of another business by threatening or coercive behavior to force them not to transact or stop transacting with that business. Therefore, Company B’s behavior is an unfair competition act that is prohibited according to the provisions of the above article.

3. How many days does it take to process an unfair competition case?

According to Article 90 of the Competition Law 2018 regulating the handling of specific unfair competition cases:

“Article 90. Handling of unfair competition cases

1. Within 15 days from the date of receipt of the case file, investigation report and investigation conclusion, the Chairman of the National Competition Commission must make one of the following decisions:

a) Handling unfair competition cases;

b) Request the Competition Investigation Agency to conduct additional investigation in case the collected evidence is found to be insufficient to determine violations of competition law. The time limit for additional investigation is 30 days from the date of decision;

c) Suspension of resolving unfair competition cases.

2. Time limit for handling competition casesUnhealthy condition in case of additional investigation is 10 days from the date of receipt of dossiers, investigation reports and conclusions of additional investigation.

4. How are coercive acts in business punished?

According to Article 17 of Decree 75/2019/ND-CP stipulating penalties for coercive behavior in business as follows:

“Article 17. Coercive acts in business

1. A fine of from 100,000,000 VND to 200,000,000 VND shall be imposed for forcing customers and business partners of other enterprises by threatening or coercive behavior to force them not to transact or stop transacting with that enterprise.

2. Fine from 200,000,000 VND to 300,000,000 VND for the acts specified in Clause 1 of this Article in case of coercing customers or the largest business partners of competitors.

3. Fines are twice the levels specified in Clauses 1 and 2 of this Article for violations in Clauses 1 and 2 of this Article in cases where the violations are committed in two or more provinces and centrally run cities.

4. Additional sanctions:

a) Confiscation of exhibits and means used to commit administrative violations of competition;

b) Confiscation of profits earned from committing violations.”