Unfair competition practices according to the law

What is unfair competition behavior? What unfair competition practices are prohibited by law?

1. What is unfair competitive behavior?

According to Clause 6, Article 3 of the Competition Law 2018, unfair competitive 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 legitimate rights and interests of other businesses.

2. Prohibited acts of unfair competition

Article 45 of the Competition Law 2018 regulates prohibited acts of unfair competition including:

– Infringement of confidential business information in the following forms:

+ Accessing and collecting confidential business information by opposing the owner’s security measures possessing that information;

+ Disclosing or using confidential business information without the permission of the owner of that information.

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

– Providing untruthful information about other enterprises. by directly or indirectly providing untruthful information about an enterprise that adversely affects the reputation, financial status or business operations of that enterprise.

– Disrupting the business operations of another enterprise by directly or indirectly hindering or interrupting the legitimate business operations of that enterprise.

– Illegally soliciting customers in the following forms here:

+ 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;

+ Comparing one’s goods and services with the same type of goods and services of other businesses but cannot prove the content.

– Selling goods or providing services below total cost leads or is likely to lead to the elimination of other businesses that are trading in the same type of goods or services.

– Other acts of unfair competition are prohibited under other laws.

According to the information you provide, your company’s behavior is one of soliciting customers. Unfair competition aimed at unfair competition is: “Comparing one’s goods and services with the same type of goods and services of other enterprises but not being able to prove the content.”

3. Principles and forms of handling unfair competition acts and remedial measures

Article 110 of the Competition Law 2018 stipulates the principles of handling violations, forms of handling violations and remedies to remedy the consequences of violations of competition law as follows:

– Organizations and individuals that violate competition laws will depend on the nature and extent of the violation. Violations subject to disciplinary action, administrative sanctions or criminal prosecution; If causing damage to the interests of the State, the legitimate rights and interests of organizations and individuals, they must compensate for the damage according to the provisions of law.

– For each violation of competition law, the violating organization or individual must be subject to one of the following main forms of sanction:

+ Warning;

+ Fine money.

– Depending on the nature and severity of the violation, organizations and individuals violating competition law may also be subject to one or several of the following additional forms of sanction:

+ Revoking the Certificate of Business Registration or equivalent document, deprivation of the right to use licenses and practice certificates;

+ Confiscation of evidence and means used used to violate competition laws;

+ Confiscation of profits earned from committing violations.

– In addition to the sanctions prescribed above, organizations and individuals violating competition laws may also be subject to one or more of the following remedial measures:

+ Restructuring businesses that abuse positions dominant market position, abuse of monopoly position;

+ Removing illegal terms from contracts, agreements or business transactions;

+ Divide, separate, resell part or all of the capital contribution and assets of an enterprise formed after economic concentration;

+ Be under the control of a competent state authority on the purchase price, selling price of goods, services or other transaction conditions in the contract of an enterprise formed after economic concentration;

+ Public rectification declare;

+ Other necessary measures to overcome the effects of violations.

– The Government regulates in detail the forms of sanctions and remedial measures for each violation of competition law.

Particularly for fines, Clause 3, Article 111 of the Competition Law 2018 stipulates that the maximum fine for violating regulations on unfair competition is 2,000,000,000 VND for organizations and the maximum fine for individuals is 1,000,000,000 VND as prescribed in Clause 5, Article 111 of the Competition Law 2018.