Helmy, Hamza & Partners (a member of Baker & McKenzie International) has successfully advised  El Motaheda Co. for Trade ("Claimant"), on a major private damages case following a cartel finding decision by the Egyptian Competition Authority ("ECA").

We represented the Claimant in seeking damages caused by a major glucose producer in Egypt,  which agreed with its competitors operating in the same market to raise the price of "Glucose" in the Egyptian Market and caused losses for Claimant during the period from 2008 - 2012.

In its report, the ECA revealed that it was able to prove that the three market players in the market of glucose production, have agreed to raise the prices of glucose in Egypt and issued an infringement decision. However, before a criminal action was initiated by the ECA, the three companies settled the case. According to the Egyptian legal system, settling cases does not constitute an admission of fault or guilt.

Yet, the Claimant brought an action seeking damages from its supplier regarding two main points, 1) the loss in profit in the quantities resold by the Claimant in the market 2) loss of profit of the quantities that the Claimant was unable to purchase due to the increase in the prices of glucose as a result of this cartel.

Accordingly, the Economic Court of Appeal has rendered a judgment in favour of our client and confirmed the two grounds upon which the Claimant was seeking damages and granted the Claimant a compensation for the damages sustained as a result of the violation of Article 6 (a) of the Egyptian Competition Law ("ECL").

"This case is the first successful private damages case following an ECA cartel settlement decision in Egypt, we are certainly pleased to reach this success as it brings relief to the Claimant and further consolidates our experience in this field of law" said Dr. Mohamed Elfar, Counsel at Baker McKenzie.

Our team included Mohamed Talaat, Mohamed Elfar, Yehia Shahine, Milad Fayez, Hania Negm and Habiba Sidky.

The Cairo office of Baker McKenzie has a rich history of involvement in high profile cartel cases including representing Egyptian leading cement producers on the price fixing allegation before the courts. and representing Egyptian dairy manufacturers on a major cartel case in which dairy product companies were accused of violating the ECL and fixing prices of raw milk bought from farmers.


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