On 25 January 2023, the Ministry of Justice and the Ministry of Commerce issued an Inter-Ministerial Proclamation No. 041 (the “Prakas”) describing the procedure for imposing fines for violation of the Law on Competition (“Competition Law”).

Penalties

Each of these violations is punishable by a fine of 3% to 10% of the infringer’s total turnover during the period of violation, limited to three years.

Offenses

Three offences covered under Law on Competition are

1. Entering into vertical agreements. This can be done by:

• requiring buyers to resell goods or services in limited geographic locations;
• requiring buyers to resell goods or services to specific customers or specific types of customers;
• requiring buyers to purchase goods or services from one seller only;
• preventing sellers from selling goods or service to other buyers; or
• requiring buyers to buy additional goods or services that are not related to the goods or services being sold.

2. Abusing a dominant market position. This can be done by:

• requiring or persuading suppliers or customers to not do business with competitors;
• refusing to supply goods or services to competitors;
• selling goods or services subject to commercial terms that require buyers to buy other goods or services separately that are not related to the purpose of the transaction;
• selling goods or services below production cost; or
• refusing to give competitors access to the necessary means of selling their goods and services.

3. Undertaking a business combination that actually or potentially restricts or distorts market competition.

The Prakas stipulates clearly what notice must be given and how long a violator has to object and file an appeal before sanctions are imposed. The General Directorate of the Consumer Protection, Competition and Fraud Repression ("CCF") is tasked with conducting the investigation of violations and overseeing the fines system, while the Competition Commission of Cambodia ("CCC") is responsible for imposing fines. It is also important to keep in mind that the Competition Law established the CCC, which may have additional duties in enforcing the law, such as issuing the required measures for the prevention, limitation, or distortion of market competition.