Decree No. 71/2014/ND-CP detailing the Competition Law on handling violations of laws in the field of competition

 

DECREE

Detailed regulations on the Competition Law regarding handling violations of the law

in the field of competition

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Electricity Law dated December 3, 2004, the Law Amending and Supplementing Certain Provisions of the Electricity Law;

Pursuant to the Law on Handling Administrative Offenses dated June 20, 2012;

At the proposal of the Minister of Industry and Trade,

The Government issues this Decree to provide detailed regulations under the Competition Law regarding handling violations of the law in the field of competition.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates the handling of organizations and individuals who commit acts violating the law on competition.

2. Violations of competition laws as defined in this Decree include:

a) Acts violating the provisions on controlling anti-competitive practices;

b) Acts violating the provisions on unfair competitive practices;

c) Other violations of competition laws.

Article 2. Applicability

This Decree applies to the following organizations and individuals:

1. Organizations and individuals engaged in business operations (hereinafter referred to collectively as enterprises) and industry associations operating in Vietnam (hereinafter referred to collectively as associations) as defined in Article 2 of the Competition Law.

2. Other organizations and individuals implementing the acts prescribed in Section 5 Chapter II of this Decree.

Article 3. Forms of handling violations of the law on competition

1. For each act of violating the law on competition, the organization or individual committing the violation must bear one of the following main forms of punishment:

a) Warning;

b) Fine.

2. Depending on the nature and degree of the violation, the organization or individual violating the law on competition may also be subject to one or more of the following supplementary forms of punishment:

a) Revocation of business registration certificate; deprivation of the right to use licenses and professional certificates;

b) Confiscation of objects and means used to violate the law on competition, including confiscation of profits obtained from the implementation of the violation.

3. In addition to the forms of punishment prescribed in Clause 1 and Clause 2 of this Article, the enterprise committing the violation may also be subject to one or several measures to remedy consequences as follows:

a) Compelling restructuring of enterprises abusing dominant market position;

b) Compelling division or separation of enterprises that have merged or consolidated; compelling sale of acquired enterprises;

c) Compelling public correction;

d) Compelling removal of clauses violating the law from contracts or business transactions;

đ) Compelling use or sale of patents, utility models, industrial designs purchased but not used;

e) Compelling removal of measures hindering other enterprises from entering the market or developing business;

g) Compelling restoration of technical and technological development conditions that were obstructed;

h) Compelling removal of unfavorable conditions imposed on customers;

i) Compelling restoration of contract terms changed without justifiable reasons;

k) Compel restoration of contracts that have been canceled without justifiable reasons.

Article 4. Determining the amount of fine for acts violating the provisions on controlling anti-competitive practices

1. The fine for acts violating the provisions on controlling anti-competitive practices is determined as a percentage of the sales revenue or purchase volume of goods and services related to the violation during the period of implementing the violation by each violating enterprise.

2. In cases where it is not possible to determine the sales revenue or purchase volume of goods and services related to the violation as prescribed in Clause 1 of this Article, the fine is determined as a percentage of the total sales revenue of the violating enterprise in the fiscal year preceding the year in which the violation was committed.

3. When determining the fine according to the provisions of Clause 1 and Clause 2 of this Article, the competent authority bases on information and data in financial and accounting books provided by the enterprise. In cases where the enterprise does not provide or provides incorrect information and data, the competent authority may base on information and data collected independently or available information and data.

4. The percentage according to the provisions of Clause 1 and Clause 2 of this Article is determined by the competent authority based on one or several factors as follows:

a) The extent of competition restriction caused by the violation;

b) The extent of damage caused by the violation;

c) The potential for competition restriction of the violators;

d) The duration of the violation;

đ) The scope of the violation;

e) Profits obtained from the implementation of the violation;

g) Other necessary factors in each specific case.

5. For each mitigating or aggravating circumstance specified in Article 85 of Decree No. 116/2005/NĐ-CP detailing the implementation of certain provisions of the Competition Law, the amount of fine determined according to the provisions of Clause 1 of this Article shall be adjusted accordingly by 15%.

6. In all cases, the amount of fine for each act of violating the provisions on controlling anti-competitive practices shall not exceed the maximum fine for such act prescribed in Item 1, Item 2, and Item 3 of Chapter II of this Decree.

Article 5. Amount of fines for violations of unfair competition practices and other violations of competition laws

1. The maximum amount of fine for unfair competition practices and other violations of competition laws is 100,000,000 VND for individuals and 200,000,000 VND for organizations.

2. The amount of fine specified in Sections 4 and 5 of Chapter II of this Decree applies to violations committed by organizations. If an individual commits the same violation, the fine for the individual shall be half the amount of the fine for the organization.

3. The specific amount of fine for a violation of unfair competition practices and other violations of competition laws is the average within the range of fines prescribed for that violation; if there are mitigating circumstances, the fine may be reduced but not below the minimum level of the fine range; if there are aggravating circumstances, the fine may be increased but not above the maximum level of the fine range.

4. For each mitigating or aggravating circumstance stipulated in Article 85 of Decree No. 116/2005/NĐ-CP detailing certain provisions of the Competition Law, the fine determined according to Clause 3 of this Article shall be adjusted downward or upward by 15% accordingly.

Article 6. Compensation for damages caused by violations of competition laws

1. Organizations and individuals who violate competition laws causing damage to the interests of the State, rights, and legitimate interests of other organizations and individuals must compensate for such damages.

2. The compensation for damages provided for in Clause 1 of this Article shall be implemented in accordance with the provisions of civil law.

Article 7. Time limit for lodging complaints about competition cases and time limit for issuing investigation decisions when competition management agencies discover actions suspected of violating competition laws

The time limit for lodging complaints about competition cases and the time limit for issuing investigation decisions when competition management agencies discover actions suspected of violating competition laws, as stipulated in Clause 2 of Article 65 of the Competition Law, is two years from the date the actions suspected of violating competition laws were carried out.

Chapter II
VIOLATIONS, FORMS AND DEGREE OF SANCTIONS FOR VIOLATIONS OF COMPETITION LAWS

Section 1
VIOLATIONS OF THE PROVISIONS ON AGREEMENTS

RESTRICTIONS ON COMPETITION

Article 8. Acts of agreeing to set prices for goods and services directly or indirectly

1. A fine up to 10% of the total revenue in the fiscal year preceding the year in which the violation occurred for each enterprise participating in the agreement with a combined market share of 30% or more on the relevant market for any of the following acts;

a) Agreeing to apply a uniform price to some or all customers;

b) Agreeing to increase or decrease prices at a specific level;

c) Agreeing to apply a common pricing formula;

d) Agreeing to maintain a fixed price ratio for related products;

đ) Agreeing not to discount prices or apply a uniform discount rate;

e) Agreeing to allocate credit limits to customers, except where such agreements allocate credit limits to customers in syndicated lending activities in accordance with the laws on credit institutions;

g) Agreeing not to reduce prices without notifying other members of the agreement;

h) Agreeing to use a uniform price at the time negotiations begin.

2. In addition to the fine prescribed in Clause 1 of this Article, the violator enterprise may also be subject to one or several supplementary sanctions and remedial measures as follows:

a) Confiscation of profits obtained from the implementation of the violation.

b) Compelling the removal of provisions violating the law from contracts or business transactions.

Article 9. Acts of agreeing to divide the market for consumption, sources of supply of goods, and provision of services

1. A fine of up to 10% of the total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on each enterprise participating in the agreement that has a combined market share of 30% or more on the relevant market for the following acts:

a) Agreeing on the quantity or location of purchasing or selling goods or services or customer groups for each party to the agreement;

b) Agreeing that each party to the agreement can only purchase goods or services from one or a certain number of specific suppliers.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, the violating enterprise may also be subject to one or several supplementary sanctions and measures to remedy consequences as provided in Clause 2 of Article 8 of this Decree.

Article 10. Acts of agreeing to limit or control the quantity or volume of production, purchase, sale of goods, and provision of services

1. A fine of up to 10% of the total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on each enterprise participating in the agreement that has a combined market share of 30% or more on the relevant market for the following acts:

a) Agreeing to reduce the quantity or volume of production, purchase, sale of goods, and provision of services on the relevant market compared to before;

b) Agreeing to set the quantity or volume of production, purchase, sale of goods, and provision of services at a level sufficient to create scarcity on the market.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, the violating enterprise may also be subject to one or several supplementary sanctions and measures to remedy consequences as provided in Clause 2 of Article 8 of this Decree.

Article 11. Acts of agreeing to limit technical development, technology, and investment

1. A fine of up to 10% of the total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on each enterprise participating in the agreement that has a combined market share of 30% or more on the relevant market for the following acts:

a) Agreeing to unify the purchase of patents, utility models, industrial designs for destruction or non-use;

b) Agreeing not to invest additional capital to expand production, improve the quality of goods and services, or to expand other developments.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, the violating enterprise may also be subject to one or several measures to remedy consequences as provided in Clause 2 of Article 8 of this Decree.

Article 12. Acts of agreeing to impose conditions on other enterprises for signing contracts for the purchase and sale of goods and services or compelling other enterprises to accept obligations unrelated directly to the subject matter of the contract

1. A fine of up to 10% of the total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on each enterprise participating in the agreement that has a combined market share of 30% or more on the relevant market for the following acts:

a) Agreeing to impose one of the following preconditions on another enterprise before signing a contract for the purchase and sale of goods and services: Limitations on the production and distribution of other goods; purchasing or providing other services not directly related to the agency's commitments under the law on agencies; limitations on the location of reselling goods, except those goods listed in the catalog of conditional business activities and restricted business activities under the law; limitations on customers buying goods for resale, except those goods listed in the catalog of conditional business activities and restricted business activities under the law; limitations on the form and quantity of goods supplied;

b) Agreeing to bind another enterprise when purchasing or selling goods and services with any enterprise participating in the agreement to purchase other goods and services from a designated supplier or to perform additional obligations outside the scope necessary to fulfill the contract.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, the violating enterprise may also be subject to one or several supplementary sanctions and measures to remedy consequences as provided in Clause 2 of Article 8 of this Decree.

Article 13. Acts of agreeing to prevent, hinder, or prohibit other enterprises from entering the market or developing their business

1. A fine of up to 10% of the total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on each enterprise participating in the agreement for the following acts:

a) Agreeing not to transact with enterprises not participating in the agreement;

b) Agreeing to jointly request, call upon, or entice their own customers not to buy or sell goods or use services from enterprises not participating in the agreement;

c) Agreeing to jointly purchase or sell goods and services at prices sufficient to prevent enterprises not participating in the agreement from entering the relevant market;

d) Agreeing to jointly request, call upon, or entice distributors and retailers currently transacting with them to discriminate against the purchase and sale of goods from enterprises not participating in the agreement in a manner that makes it difficult for these enterprises to sell their goods;

đ) Agreeing to jointly purchase or sell goods and services at prices sufficient to prevent enterprises not participating in the agreement from expanding their business scale.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, the violating enterprise may also be subject to one or several supplementary sanctions and measures to remedy consequences as provided in Clause 2 of Article 8 of this Decree.

Article 14. Acts of agreeing to remove from the market enterprises that are not parties to the agreement

1. A fine of up to 10% of the total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on each enterprise participating in the agreement for the following acts:

a) Agreeing not to transact with enterprises that are not participating in the agreement and jointly requesting, calling for, or enticing their customers not to purchase goods or use services from enterprises that are not participating in the agreement;

b) Agreeing not to transact with enterprises that are not participating in the agreement and jointly purchasing or selling goods and services at prices sufficient to force enterprises not participating in the agreement to withdraw from the relevant market.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, the violating enterprise may also be subject to one or several supplementary sanctions and measures to remedy consequences as provided in Clause 2 of Article 8 of this Decree.

Article 15. Acts of colluding to ensure that one or more parties to the agreement win bids for the supply of goods or provision of services

1. A fine of up to 10% of total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on each enterprise that is a party to the agreement for one of the following acts of collusion in bidding:

a) Agreeing that one or more parties to the agreement will withdraw from the bidding process or withdraw previously submitted bid documents so that one or more parties within the agreement can win the bid;

b) Agreeing that one or more parties to the agreement will create difficulties for non-participating parties in the bidding process by refusing to provide raw materials, not signing subcontract agreements, or other forms of creating difficulties;

c) Agreeing that parties to the agreement will uniformly present non-competitive prices or set competitive prices but with conditions that the tenderer cannot accept in order to pre-determine which one or more parties will win the bid;

d) Agreeing that parties to the agreement will pre-determine the number of times each party will win the bid within a certain period of time.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, the violating enterprise may also be subject to one or several supplementary sanctions and measures to remedy consequences as provided in Clause 2 of Article 8 of this Decree.

Section 2
VIOLATIONS OF THE PROVISIONS ON ABUSE OF DOMINANT MARKET POSITION AND MONOPOLISTIC POSITION

Article 16. Acts of selling goods or providing services below cost price to eliminate competitors

1. A fine of up to 10% of total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on enterprises with a dominant market position or individual enterprises within a group of enterprises with a dominant market position for the act of selling goods or providing services below full cost price to eliminate competitors.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, enterprises violating the provisions on abuse of dominant market position may also be subject to one or several additional forms of punishment and remedial measures as provided for in Clause 2 of this Article.

a) Confiscation of profits obtained from the implementation of the violation.

b) Compelling the removal of unlawful terms from contracts or related business transactions;

c) Compelling restructuring of enterprises with a dominant market position.

Article 17. Acts of imposing unreasonable purchase or sale prices for goods or services or setting a minimum resale price causing harm to customers

1. A fine of up to 10% of total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on enterprises with a dominant market position or individual enterprises within a group of enterprises with a dominant market position for one of the following acts:

a) Imposing unreasonable purchase or sale prices for goods or services causing harm to customers;

b) Setting a minimum resale price causing harm to customers;

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, enterprises violating the provisions on abuse of dominant market position may also be subject to one or several additional forms of punishment and remedial measures as provided for in Clause 2 of Article 16 of this Decree.

Article 18. Acts restricting production, distribution of goods and services, limiting market, hindering technical and technological development causing damage to customers

1. A fine of up to 10% of total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on enterprises with a dominant market position or individual enterprises within a group of enterprises with a dominant market position for one of the following acts:

a) Reducing the supply of goods and services on the relevant market compared to the previous supply volume under conditions without significant fluctuations in supply and demand relations; without economic crises, natural disasters, enemy attacks; without major technical incidents or emergency situations;

b) Setting the supply level of goods and services at a level sufficient to create scarcity on the market;

c) Hoarding goods and not selling them to cause market instability;

d) Supplying goods and services only in one or certain geographic areas;

đ) Only purchasing goods and services from one or certain sources of supply unless other sources cannot meet reasonable conditions and comply with common commercial practices set by the buyer;

e) Purchasing patents, utility models, industrial designs for destruction or non-use;

g) Threatening or compelling those researching and developing technology and technology to stop or abandon such research;

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, enterprises violating the provisions on abuse of dominant market position may also be subject to one or several additional forms of punishment and remedial measures as provided for in Clause 2 of this Article.

a) Additional penalty forms and measures to remedy consequences prescribed in Clause 2, Article 16 of this Decree;

b) Compelling the use or reselling of patents, utility models, industrial designs that have been purchased but not used;

c) Compelling the removal of measures preventing or hindering other businesses from entering the market or developing their business;

d) Compelling the restoration of conditions for technical and technological development that the business has hindered.

Article 19. Acts imposing different trading conditions in similar transactions aimed at creating inequality in competition

1. Imposing a fine up to 10% of total revenue in the fiscal year preceding the year of violation by a business with a dominant market position or a business within a group of businesses with a dominant market position for discriminatory treatment of businesses regarding purchase and sale conditions, prices, payment terms, quantities in similar purchase and sale transactions of goods and services in value or nature to place one or some businesses in a more advantageous competitive position than others.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, enterprises violating the provisions on abuse of dominant market position may also be subject to one or several additional forms of punishment and remedial measures as provided for in Clause 2 of Article 16 of this Decree.

Article 20. Acts requiring another business to enter into a purchase and sale contract for goods and services or compelling another business to accept obligations not directly related to the subject matter of the contract

1. A fine of up to 10% of total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on enterprises with a dominant market position or individual enterprises within a group of enterprises with a dominant market position for one of the following acts:

a) Imposing the following preconditions on another business before entering into a purchase and sale contract for goods and services: Limitations on the production and distribution of other goods; purchasing and supplying unrelated services not directly related to the agency's commitments under the law on agencies; limitations on reselling locations, except for goods listed in the catalog of conditional business operations and restricted business operations under the law; limitations on customer purchases for resale, except for goods listed in the catalog of conditional business operations and restricted business operations under the law; limitations on the form and quantity of goods supplied.

b) Binding another business when buying and selling goods and services with any business participating in the agreement to purchase other goods and services from the supplier or designated person or to perform additional obligations outside the scope necessary to fulfill the contract.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, enterprises violating the provisions on abuse of dominant market position may also be subject to one or several additional forms of punishment and remedial measures as provided for in Clause 2 of Article 16 of this Decree.

Article 21. Acts preventing new competitors from entering the market

1. A fine of up to 10% of total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on enterprises with a dominant market position or individual enterprises within a group of enterprises with a dominant market position for one of the following acts:

a) Requesting its customers not to trade with new competitors;

b) Threatening or compelling distributors and retail stores not to accept the distribution of products from new competitors;

c) Selling goods at a price sufficient to prevent new competitors from entering the market but not falling under Clause 1, Article 16 of this Decree.

2. In addition to the monetary penalty prescribed in Clause 1 of this Article, enterprises violating the provisions on abuse of dominant market position may also be subject to one or several additional forms of punishment and remedial measures as provided for in Clause 2 of Article 16 of this Decree.

Article 22. Acts of abusing a monopoly position

1. A fine of up to 10% of total revenue in the fiscal year preceding the year in which the violation occurs shall be imposed on an enterprise with a dominant position for any of the following abusive acts:

a) The acts prescribed in Clause 1 of Article 16, Clause 1 of Article 17, Clause 1 of Article 18, Clause 1 of Article 19, Clause 1 of Article 20, and Clause 1 of Article 21 of this Decree;

b) Imposing unfavorable conditions on customers;

c) Unilaterally changing or canceling contracts already concluded without prior notice to customers and without being subject to any sanctions;

d) Unilaterally changing or canceling contracts already concluded based on one or more reasons not directly related to the necessary conditions for fully performing the contracts and without being subject to any sanctions.

2. In addition to the monetary fines prescribed in Clause 1 of this Article, enterprises abusing their monopoly positions may be subject to one or more supplementary penalties and remedial measures as follows:

a) Confiscation of profits obtained from the implementation of the violation.

b) Compelling the removal of unlawful terms from contracts or related business transactions;

c) Compelling restoration of technical and technological development conditions that were obstructed;

d) Compelling removal of unfavorable conditions imposed on customers;

đ) Compelling restoration of contract terms changed without justifiable reasons;

e) Compelling the restoration of canceled contracts without justifiable reasons.

Section 3
VIOLATIONS OF THE PROVISIONS ON ECONOMIC CONCENTRATION

Article 23. Prohibited acts of business mergers

1. Imposing a fine on the enterprise receiving the merger up to 10% of the total revenue of the enterprise receiving the merger and the enterprise being merged in the fiscal year preceding the year in which the prohibited merger act was committed as stipulated in Article 18 of the Competition Law.

2. In addition to the monetary fines prescribed in Clause 1 of this Article, the enterprise receiving the merger may be compelled to divide or separate the merged enterprise.

Article 24. Prohibited acts of business consolidations

1. Imposing a fine on the enterprise formed after consolidation up to 10% of the total revenue of the participating enterprises in the fiscal year preceding the year in which the prohibited consolidation act was committed as stipulated in Article 18 of the Competition Law.

2. In addition to the monetary fines prescribed in Clause 1 of this Article, the consolidated enterprise may be subject to one or more supplementary penalties and remedial measures as follows:

a) Revoking the business registration certificate issued to the consolidated enterprise;

b) Compulsion to divide or separate the merging enterprise.

Article 25. Prohibited acts of acquiring businesses

1. Imposing a fine up to 10% of the total revenue of the acquiring enterprise and the acquired enterprise in the fiscal year preceding the year in which the prohibited partial or full acquisition act was committed as stipulated in Article 18 of the Competition Law.

2. In addition to the monetary fines prescribed in Clause 1 of this Article, the acquiring enterprise may be compelled to resell the portion of assets it has purchased.

Article 26. Prohibited acts of joint ventures between enterprises

1. Imposing a fine up to 10% of the total revenue of each joint venture party in the fiscal year preceding the year in which the prohibited joint venture act was committed as stipulated in Article 18 of the Competition Law.

2. In addition to the monetary fines prescribed in Clause 1 of this Article, the joint venture enterprise may have its business registration certificate revoked.

Article 27. Acts of failing to report economic concentration

Imposing a fine up to 10% of the total revenue of each enterprise participating in the economic concentration in the fiscal year preceding the year in which the failure to report act was committed as stipulated in Article 20 of the Competition Law.

Section 4
VIOLATIONS OF PROVISIONS ON UNFAIR COMPETITION BEHAVIOR UNFAIR COMPETITION

BEHAVIOR

Article 28. Unfair competition acts related to industrial property

1. A fine of from VND 10,000,000 to VND 40,000,000 shall be imposed for one of the following acts:

a) Using a trademark protected in a country that is a member of an international treaty providing for the prohibition on representatives or agents of the trademark owner using the trademark if the user is a representative or agent of the trademark owner and such use is not authorized by the trademark owner and does not have a legitimate reason;

b) Registering, holding, or using a domain name identical or similar enough to cause confusion with another person's protected trademark, trade name, or geographical indication without having the right to use it for the purpose of holding the domain name, taking advantage of, or damaging the reputation of the corresponding trademark, trade name, or geographical indication.

2. A fine of from VND 50,000,000 to VND 100,000,000 shall be imposed for one of the following acts:

a) Using indications containing misleading information about another person's trade name, business slogan, business symbol, packaging, geographical indication, trademark, product label, and other factors as prescribed by the Government to mislead customers' perception of goods or services for competitive purposes;

b) Trading in goods or services that use misleading indications as prescribed in Point a Clause 2 of this Article.

3. A fine twice the amount specified in Clause 2 of this Article shall be imposed for the act prescribed in Clause 2 of this Article in the following cases:

a) The related goods or services are essential goods or services as prescribed by law;

b) The violation is carried out over a scope of two provinces or centrally-administered cities or more.

4. In addition to being fined under Clause 1, Clause 2, and Clause 3 of this Article, the violating enterprise may also be subject to one or several supplementary penalties and remedial measures as follows:

a) Seizure of objects and means used to commit the violation including seizure of profits obtained from committing the violation.

b) Compulsion to make a public correction.

Article 29. Acts infringing business secrets

1. A fine of from VND 10,000,000 to VND 30,000,000 shall be imposed for one of the following acts:

a) Accessing and collecting information constituting trade secrets by circumventing the security measures of the legitimate owner of such trade secrets;

b) Disclosing or using information constituting trade secrets without the permission of the owner of such trade secrets;

c) Violating confidentiality agreements or deceiving, taking advantage of the trust of persons bound by confidentiality obligations to access, collect, and disclose information constituting trade secrets of the owner of such trade secrets;

d) Accessing and collecting information belonging to another person's business secret when they are processing procedures according to the law related to business operations, circulation of products, or by opposing state agency security measures or using such information for business purposes, applying for permits related to business operations or product circulation.

2. In addition to being fined under Clause 1 of this Article, the violating enterprise may also have objects and means used to commit the violation seized including seizure of profits obtained from committing the violation.

Article 30. Acts of forcing in business

1. A fine of from VND 50,000,000 to VND 100,000,000 shall be imposed for the act of forcing customers or business partners of another enterprise through threats or coercion to prevent them from transacting or ceasing transactions with that enterprise.

2. A fine of from VND 100,000,000 to VND 150,000,000 shall be imposed for the act prescribed in Clause 1 of this Article in the following cases:

a) Forcing the largest customer or business partner of a competitor.

b) The violation is carried out over a scope of two provinces or centrally-administered cities or more.

3. In addition to being fined as prescribed in Clause 1 and Clause 2 of this Article, the violating enterprise will also have objects and means used to commit the violation seized including seizure of profits obtained from committing the violation.

Article 31. Defaming another business

1. A fine of from VND 10,000,000 to VND 50,000,000 shall be imposed for defaming another business through indirect actions that disseminate false information, adversely affecting the reputation, financial status, and business operations of the other business.

2. A fine of from VND 50,000,000 to VND 100,000,000 shall be imposed for one of the following acts:

a) Defaming another business through direct actions that disseminate false information, adversely affecting the reputation, financial status, and business operations of the other business;

b) Defaming another business through indirect actions that disseminate false information, adversely affecting the reputation, financial status, and business operations of the other business, where such violations are carried out across two provinces or centrally-administered cities or more.

3. A fine of from VND 100,000,000 to VND 150,000,000 shall be imposed for violations stipulated in Point a Clause 2 of this Article, where such violations are carried out across two provinces or centrally-administered cities or more.

4. In addition to the fines prescribed in Clause 1, Clause 2, and Clause 3 of this Article, the violating business may also be subject to one or several supplementary sanctions and remedial measures as prescribed in Clause 4 of Article 28 of this Decree.

Article 32. Disrupting the Business Operations of Another Business

1. A fine of from VND 50,000,000 to VND 100,000,000 shall be imposed for disrupting the lawful business operations of another business through direct or indirect actions that obstruct or interrupt the business operations of that business.

2. A fine of from VND 100,000,000 to VND 150,000,000 shall be imposed for violations stipulated in Clause 1 of this Article in the following cases:

a) Disrupting the business operations of another business to the extent that the disrupted business cannot continue its normal business operations.

b) The violation is carried out over a scope of two provinces or centrally-administered cities or more.

3. In addition to the fines prescribed in Clause 1, Clause 2 of this Article, the violating business may also be subject to one or several supplementary sanctions and remedial measures as prescribed in Clause 4 of Article 28 of this Decree.

Article 33. Advertising Practices Aimed at Unfair Competition

1. A fine of from VND 60,000,000 to VND 80,000,000 shall be imposed for the following advertising practices:

a) Directly comparing one's goods or services with similar goods or services of another business;

b) Imitating another advertisement to cause confusion among customers.

2. A fine of from VND 80,000,000 to VND 140,000,000 shall be imposed for advertising practices that disseminate false or misleading information about one of the following items: price, quantity, quality, utility, design, type, packaging, production date, shelf life, origin of goods, producer, place of production, processor, processing location; usage methods, service methods, warranty period; other false or misleading information.

3. In addition to the fines prescribed in Clause 1, Clause 2 of this Article, the violating business may also be subject to one or several supplementary sanctions and remedial measures as prescribed in Clause 4 of Article 28 of this Decree.

Article 34. Acts of Promotional Activities Aimed at Unfair Competition

1. A fine of from VND 60,000,000 to VND 80,000,000 shall be imposed for one of the following acts:

a) Organizing promotions with false information about prizes;

b) Conducting promotional activities that are not truthful or misleading about goods or services to deceive customers;

c) Discriminating against similar customers in different areas within the same promotional program;

d) Giving customers samples of goods to try but requiring them to exchange the goods they are currently using, produced by another enterprise, for the enterprise's own goods.

2. A fine of from VND 80,000,000 to VND 100,000,000 shall be imposed for violations stipulated in Clause 1 of this Article in cases where the scale of promotional activities covers two or more provinces or centrally-run cities.

3. In addition to the fines prescribed in Clauses 1 and 2 of this Article, enterprises conducting promotional activities aimed at unfair competition may also be subject to one or several supplementary sanctions and measures to remedy consequences as prescribed in Clause 4 of Article 28 of this Decree.

Article 35. Acts of Discrimination by Associations

1. A fine of from VND 10,000,000 to VND 30,000,000 shall be imposed for one of the following acts:

a) Refusing membership or withdrawal from an association if such refusal is discriminatory and disadvantages the enterprise in competition;

b) Unreasonably restricting business activities or other activities related to the business objectives of member enterprises.

2. A fine of from VND 30,000,000 to VND 50,000,000 shall be imposed for one of the acts prescribed in Clause 1 of this Article in one of the following cases:

a) Repeatedly committing the violation against one enterprise;

b) Committing the violation against multiple enterprises simultaneously.

3. A fine of from VND 50,000,000 to VND 100,000,000 shall be imposed for one of the acts prescribed in Clause 2 of this Article in cases where unreasonable restrictions are imposed to force member enterprises to withdraw from the association.

Article 36. Violations of Multi-Level Marketing Sales Regulations

1. A fine of from VND 20,000,000 to VND 40,000,000 shall be imposed for one of the following acts:

a) Engaging in multi-level marketing sales without ensuring the conditions for registration of multi-level marketing sales activities as prescribed by law;

b) Not submitting procedures to request additional issuance, change of the Certificate of Registration for Multi-Level Marketing Sales Activities when there are changes or additions related to the application for the Certificate of Registration for Multi-Level Marketing Sales Activities;

c) Not submitting procedures to request reissuance of the Certificate of Registration for Multi-Level Marketing Sales Activities when the Certificate of Registration for Multi-Level Marketing Sales Activities is lost or damaged;

d) Providing false information in the application for the Certificate of Registration for Multi-Level Marketing Sales Activities;

đ) Not implementing multi-level marketing sales activities within twelve consecutive months from the date of issuance of the Certificate of Registration for Multi-Level Marketing Sales Activities or suspending multi-level marketing sales activities for more than twelve consecutive months;

e) Signing contracts with individuals who do not meet the conditions to participate in multi-level marketing sales activities as prescribed by law;

g) Not performing or performing incompletely or inadequately the obligations related to training participants in multi-level marketing sales activities as prescribed by law;

h) Not performing or performing incompletely or inadequately the obligations related to issuing, changing, or recalling multi-level marketing sales membership cards as prescribed by law;

i) Not performing or performing incompletely or inadequately the obligation to publicly disclose at the headquarters and provide to individuals intending to join the multi-level marketing sales network the information and documents as prescribed by law;

k) Not regularly monitoring the activities of multi-level marketing sales participants to ensure that they comply with the Operating Rules and Reward Programs of the enterprise;

l) Not withholding personal income tax of multi-level marketing sales participants before paying commissions, bonuses, or other economic benefits to them;

m) Not managing multi-level marketing sales participants through a membership card system as prescribed by law;

n) Not notifying or notifying incorrectly or incompletely multi-level marketing sales participants about goods that the enterprise does not purchase back before they make purchases;

o) Signing contracts with multi-level marketing sales participants without a written form or without including all essential contents as prescribed by law.

2. A fine of from VND 40,000,000 to VND 60,000,000 shall be imposed for one of the following acts:

a) Not complying with the regulations on business objects under the multi-level marketing method or engaging in multi-level marketing sales of goods not registered with the authority issuing the Certificate of Registration for Multi-Level Marketing Sales Activities as prescribed by law;

b) Not performing or performing incompletely or inadequately the obligations prescribed by law when temporarily suspending multi-level marketing sales activities or continuing such activities after the suspension period;

c) Not performing or performing incompletely or inadequately the obligation to notify competent authorities when terminating multi-level marketing sales activities;

d) Engaging in multi-level marketing sales activities in a province or centrally-run city where the enterprise does not have its main office without confirmation from the Department of Industry and Trade of that province or city regarding the receipt of notification of the activity;

đ) Not performing or performing incompletely or inadequately the obligation to notify the Department of Industry and Trade of the location where meetings, seminars, or training sessions are organized as prescribed by law;

e) Not performing or performing incompletely or inadequately the obligation to repurchase goods from multi-level marketing sales participants as prescribed by law;

g) Paying multi-level marketing sales participants a total value of commissions, bonuses, and other economic benefits in a year exceeding forty percent of the enterprise's multi-level marketing sales revenue in that year;

h) Not performing or performing incompletely or inadequately the obligations prescribed by law when terminating multi-level marketing sales participation contracts;

i) Withdrawing the deposit when there is no written agreement from the authority issuing the Certificate of Registration for Multi-Level Marketing Sales Activities, except in cases where the enterprise withdraws the deposited amount into a commercial bank to complete the registration procedures for multi-level marketing sales activities and has not been issued the Certificate of Registration for Multi-Level Marketing Sales Activities.

k) Failing to amend the confirmation document for the deposit or failing to notify the authority issuing the Business Registration Certificate for Multi-Level Marketing Sales of the amendment to the confirmation document for the deposit when there is a change to the basic contents of the confirmation document for the deposit;

l) Failing to fulfill, fulfilling incorrectly, or not fully the obligation to report periodically to the competent state agency as prescribed by law;

3. Imposing a fine on multi-level marketing sales enterprises from VND 60,000,000 to VND 100,000,000 for any of the following acts:

a) Engaging in multi-level marketing sales without registering the multi-level marketing sales business with the competent state agency;

b) Requiring individuals wishing to join the multi-level marketing sales network to pay a certain amount of money in any form as a condition to be allowed to join the multi-level marketing sales network;

c) Requiring individuals wishing to join the multi-level marketing sales network to purchase a certain quantity of goods in any form as a condition to be allowed to join the multi-level marketing sales network;

d) Requiring multi-level marketing sales participants to pay an additional amount of money in any form to maintain, develop, or expand their multi-level marketing sales network;

đ) Unreasonably restricting the development rights of multi-level marketing sales participants in any form;

e) Allowing multi-level marketing sales participants to receive commissions, bonuses, or other economic benefits from enticing others to join the multi-level marketing sales network;

g) Refusing to pay commissions, bonuses, or other economic benefits that multi-level marketing sales participants are entitled to without justifiable reasons;

h) Requiring multi-level marketing sales participants to recruit a certain number of new participants or extend their participation contracts to be eligible for commissions, bonuses, or other economic benefits;

i) Requiring participants attending meetings, seminars, or training sessions related to the basic training program to pay money or fees in any form, except for reasonable costs for purchasing training materials;

k) Compelling multi-level marketing sales participants to attend meetings, seminars, or training sessions on topics not included in the basic training program of the enterprise;

l) Requiring participants attending meetings, seminars, or training sessions on topics not included in the basic training program to pay more than the reasonable cost to conduct such activities;

m) Charging fees for issuing or renewing membership cards for multi-level marketing sales participants in any form;

n) Not committing to allow multi-level marketing sales participants to return goods and receive back the amount paid to the enterprise according to the provisions of the law;

o) Obstructing multi-level marketing sales participants from returning goods according to the provisions of the law;

p) Providing false or misleading information about the benefits of joining the multi-level marketing sales network, about the nature and utility of products, or about the activities of the multi-level marketing sales enterprise to entice others to join the multi-level marketing sales network;

q) Maintaining more than one multi-level marketing sales position, multi-level marketing sales sales contract, multi-level marketing sales business code, or equivalent forms for the same multi-level marketing sales participant;

r) Operating under a pyramid scheme model;

s) Buying or transferring the multi-level marketing sales participant network to another enterprise except in cases of acquisition, merger, or consolidation of enterprises;

t) Requesting or inciting multi-level marketing sales participants to perform acts prohibited by law;

4. Imposing a fine twice the amount specified in Clause 3 of this Article for the acts stipulated in Clause 3 of this Article if the violation is carried out in two provinces or centrally-administered cities or more;

5. In addition to being fined as provided for in Clause 1, Clause 2, Clause 3, and Clause 4 of this Article, the violating enterprise may also be subject to one or several supplementary penalties and remedial measures as follows:

a) Revoking the Business Registration Certificate for Multi-Level Marketing Sales for the acts stipulated at Points d, đ Clause 1 of this Article and the acts stipulated in Clause 3 of this Article, except for engaging in multi-level marketing sales without registering the multi-level marketing sales business with the competent state agency;

b) Confiscating the objects, means used to commit the violation including confiscating the profits obtained from the violation;

c) Ordering public correction.

Section 5
OTHER VIOLATIONS OF THE LAW ON COMPETITION

Article 37. Acts violating provisions on providing information and documents

1. A warning or a fine from 2,000,000 VND to 5,000,000 VND shall be imposed for one of the following acts:

a) Failing to provide or providing incomplete information and documents that the entity knows of upon request of the competent authority;

b) Providing information and documents not within the required time limit upon request of the competent authority;

c) Intentionally providing false information or documents or distorting information and documents;

d) Coercing others to provide false information or documents;

d) Concealing or destroying information and documents related to competition cases.

2. A fine from 5,000,000 VND to 10,000,000 VND shall be imposed for one of the acts stipulated in Clause 1 of this Article if the requested information and documents are particularly important for properly resolving the competition case.

3. In addition to the fines prescribed in Clauses 1 and 2 of this Article, the violator may also be compelled to provide complete information and documents.

Article 38. Acts violating other provisions related to the investigation and handling of competition cases

1. A warning or a fine from 2,000,000 VND to 5,000,000 VND shall be imposed for one of the following acts:

a) Intentionally or negligently disclosing information and documents classified as confidential investigation material;

b) Disrupting the hearing session.

2. A fine from 5,000,000 VND to 10,000,000 VND shall be imposed for one of the acts stipulated in Clause 1 of this Article if the disclosed information and documents are particularly important for properly resolving the competition case.

3. In addition to the fines prescribed in Clauses 1 and 2 of this Article, the violator shall have their tools and means used to commit the violation confiscated.

Article 39. Acts of agreeing to limit competition or economic concentration before receiving an exemption decision from the competent authority

1. A fine from 100,000,000 VND to 200,000,000 VND shall be imposed on each enterprise participating in an agreement to limit competition that is eligible for exemption under Article 10 of the Competition Law before receiving an exemption decision from the Minister of Industry and Trade.

2. A fine from 100,000,000 VND to 200,000,000 VND shall be imposed on an enterprise implementing an economic concentration act that is eligible for exemption under Article 19 of the Competition Law before receiving an exemption decision from the Prime Minister or the Minister of Industry and Trade.

Chapter III
AUTHORITY AND PROCEDURES FOR HANDLING VIOLATIONS OF THE LAW VIOLATION OF THE LAW

VIOLATIONS OF COMPETITION LAW

Section 1
AUTHORITY TO HANDLE VIOLATIONS OF COMPETITION LAW

Article 40. Authority of the Competition Management Agency

1. For acts violating unfair competition provisions and other acts violating competition laws, the head of the Competition Management Agency has the authority:

a) To issue warnings;

b) To impose fines on violations stipulated in Sections 4 and 5 of Chapter II of this Decree up to 100,000,000 VND in cases where the act is committed by an individual, and up to 200,000,000 VND in cases where the act is committed by an organization;

c) To confiscate property and means used to commit violations of competition laws including confiscation of profits derived from such violations;

d) To compel public correction;

2. The head of the Competition Management Agency has the authority to decide on applying, changing, or revoking administrative preventive measures before transferring the competition case file to the Competition Council for handling.

Article 41. Authority of the Competition Council, Competition Case Handling Council

For acts violating provisions on controlling restrictive competition practices, the Competition Council and the Competition Case Handling Council have the following authorities:

1. To issue warnings.

2. Imposing fines.

3. Confiscating objects and means used to commit the violation.

4. To apply the measures prescribed in Points c, d, đ, e, g, h, i, and k of Clause 3 of Article 3 of this Decree.

5. To request the competent authority to revoke the business registration certificate, suspend the right to use licenses and professional certificates.

6. To request the competent authority to apply the measures prescribed in Points a and b of Clause 3 of Article 3 of this Decree.

Section 2
PROCEDURES FOR HANDLING VIOLATIONS OF COMPETITION LAWS

Article 42. Procedures for Handling Violations of Competition Law

Procedures for handling violations of competition laws include the following procedures:

1. Procedures for handling acts violating regulations on controlling anti-competitive practices and unfair competition;

2. Procedures for handling acts violating other competition law regulations.

Article 43. Procedures for Handling Acts Violating Regulations on Controlling Anti-Competitive Practices and Unfair Competition

The handling of acts violating regulations on controlling anti-competitive practices and unfair competition must follow the procedures stipulated in Chapter V of the Competition Law and the provisions in Chapter III of Decree No. 116/2005/NĐ-CP detailing certain provisions of the Competition Law.

Article 44. Preparing Records on Acts Violating Other Competition Law Regulations

1. When discovering acts violating other competition law regulations as specified in Section 3 of Chapter II of this Decree, the competent authority must immediately issue an order to stop the violation and proceed to prepare a record on the violation.

2. The contents of the record include:

a) Date, month, year, and location of recording;

b) Name, position of the recorder;

c) Name, address, occupation of the individual violator or name, address of the organization violator;

d) Date, month, year, and location where the violation occurred;

đ) Description of the violation;

e) Administrative preventive measures (if any);

g) Status of seized items and means (if any);

h) Statement of the individual violator or representative of the organization violator;

i) Name, address, statement of witnesses, victims or representatives of organizations affected (if any).

3. The record must be prepared in at least two copies; it must be signed by the person preparing the record and the individual committing the violation or the representative of the organization committing the violation; if there are witnesses, victims, or representatives of organizations that have been harmed, they must also sign the record; in cases where the record consists of multiple pages, those persons specified in this clause must sign each page of the record. If the individual committing the violation, the representative of the organization committing the violation, the witness, the victim, or the representative of the organization that has been harmed refuse to sign, the person preparing the record must clearly state the reason in the record.

4. Upon completion, the record must be handed over to the individual or organization violator one copy; if the violation exceeds the authority of the recorder to handle, then that person must send the record to the authorized person for handling.

Article 45. Time Limit for Issuing a Decision to Handle Violations of Other Competition Law Regulations

1. The time limit for issuing a decision to handle violations of other competition law regulations is ten days, starting from the date of preparing the record on the violation of other competition law regulations; in cases with many complex circumstances, this period is thirty days.

2. In cases where additional time is needed to verify and collect evidence, the competent authority must report in writing to their direct superior requesting an extension; the extension must be in writing and shall not exceed thirty days.

3. Beyond the time limits set forth in Clause 1 and Clause 2 of this Article, the competent authority imposing penalties shall not issue a penalty decision but will still decide to apply remedial measures as stipulated in Clause 3 of Article 37 and Clause 3 of Article 38 of this Decree.

If the competent authority handling the case commits an error by exceeding the time limit without issuing a decision to handle the violation, they will be dealt with according to the law.

Article 46. Decision to Handle Violations of Other Competition Law Regulations

1. The contents of the decision on handling violations of other competition law provisions include:

a) Date of issuance of the decision;

b) Name, position of the decision maker;

c) Name, address, occupation of the individual violator or name, address of the organization violator;

d) Violation behavior; related circumstances for resolving the violation; applicable articles and clauses of regulatory legal documents;

đ) Main form of penalty, supplementary form of penalty (if any), measures to mitigate consequences (if any);

e) Execution deadline, place, and signature of the decision maker;

g) Right to appeal against the decision on handling violations of other competition law provisions according to the law.

2. The decision on handling violations of other competition law provisions must clearly state that individuals or organizations being handled will be subject to compulsory enforcement if they do not voluntarily comply.

3. The decision on handling violations of other competition law provisions takes effect from the date of signing, except when another effective date is specified in the decision.

4. Within three working days from the date of issuance of the decision to handle violations of other competition law regulations, the competent authority issuing the decision must send the decision to the individual or organization being penalized, the agency collecting fines, and other relevant agencies (if any) for enforcement.

The decision to handle violations of other competition law regulations is delivered directly or sent via registered mail and notified to the individual or organization being penalized.

In cases where the decision is delivered directly and the individual or organization committing the violation deliberately refuses to accept the decision, the competent authority must prepare a record of non-receipt of the decision, which must be confirmed by local authorities and considered as the decision having been delivered.

In cases where the decision is sent via registered mail, if after ten days from the third attempt to send the decision through postal service and it is returned due to the deliberate refusal of the individual or organization committing the violation to accept it; or if the decision has been posted at the place of residence of the individual or the headquarters of the organization being penalized, or there is evidence indicating that the violator is evading acceptance of the decision, then the decision is considered to have been delivered.

Section 3
PROCEDURES FOR ENFORCING DECISIONS ON HANDLING COMPETITION CASES AND DECISIONS ON HANDLING VIOLATIONS OF OTHER COMPETITION LAW REGULATIONS

ON OTHER COMPETITION MATTERS

Article 47. Enforcement of Competition Case Handling Decisions and Other Violation Handling Decisions under Competition Law

1. An enterprise subject to violation handling must comply with the competition case handling decision of the Competition Case Handling Council and the competition management agency within thirty days from the date such competition case handling decision becomes legally effective.

2. Organizations and individuals subject to other violations of competition law provisions as stipulated in Section 5 Chapter II of this Decree must comply with the decision on handling other violations of competition law provisions within ten days from the date they are handed the decision on handling other violations of competition law provisions.

3. Upon expiration of the time limit specified in Clause 1 and Clause 2 of this Article, if organizations and individuals subject to handling do not voluntarily comply, they will be enforced compulsorily according to the provisions of Articles 49 and 50 of this Decree.

Article 48. Place for Payment of Fine

Organizations and individuals fined according to the competition case handling decision and other decisions on handling violations of competition law provisions must pay the fine at the State Treasury Office recorded in the competition case handling decision and other decisions on handling violations of competition law provisions.

Article 49. Compulsory Enforcement of Competition Case Handling Decisions

1. Upon expiration of the time limit specified in Clause 1 of Article 47 of this Decree, if organizations and individuals subject to violation handling do not voluntarily comply, do not initiate litigation before the Court as prescribed in Section 7 Chapter V of the Competition Law, the party entitled to enforce the competition case handling decision has the right to submit a request to the competent authority specified in Clause 2 and Clause 3 of this Article to organize the enforcement of the competition case handling decision within the scope of functions, tasks, powers of that agency.

2. The competent authority is responsible for revoking business registration certificates, confiscating licenses and practice certificates issued by itself for enterprises violating competition law according to the request of the Competition Case Handling Council in the competition case handling decision.

3. Other competent authorities are responsible for organizing the implementation of measures to restructure enterprises abusing dominant market positions, splitting or separating enterprises that have merged or consolidated, or compelling the sale of acquired parts of enterprises according to the request of the Competition Case Handling Council in the competition case handling decision.

4. The civil enforcement agency of the province or centrally administered city where the headquarters, residence, or property of the party subject to enforcement is located shall be responsible for organizing the implementation of the part of the decision related to assets in the competition case handling decision according to the request of the party entitled to enforce the competition case handling decision.

Article 50. Compulsory Enforcement of Decisions on Handling Other Violations of Competition Law Provisions

Upon expiration of the time limit specified in Clause 2 of Article 47 of this Decree, if organizations and individuals subject to handling other violations of competition law provisions do not voluntarily comply with the decision, they will be enforced compulsorily according to the provisions of the law.

Chapter IV
IMPLEMENTING PROVISIONS

Article 51. Effective Date

1. This Decree takes effect from September 15, 2014, and replaces Government Decree No. 120/2005/NĐ-CP dated September 30, 2005, on handling violations of the law in the field of competition.

2. Acts of violating the law in the field of competition committed prior to the effective date of this Decree shall be handled and punished according to the provisions that are more favorable to the organizations and individuals committing the violations.

Article 52. Responsibility for Implementation

1. In cases of necessity, the competition management agency has the right to request the Ministry of Finance to cooperate in determining the amount of profit obtained from the implementation of acts violating the provisions of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally administered cities are responsible for implementing this Decree./.