Cairo: Egypt"s competition watchdog has decided that the country"s steel industry and sector heavyweight Ezz Steel did not engage in anti-competitive price practices, state media reported on Thursday.
"The existence of agreements between companies working in the production of steel rebars in violation of article 6 of the anti-monopoly law was not proven," state news agency MENA said.
MENA also said there was no evidence to show Ezz Steel had abused its dominant position in the sector in violation of the law, nor had smaller firms collaborated anti-competitively.
The Competition Authority also recommended the government license integrated steel plants to reduce production costs and increase competition in the sector.
It said the government appeared to be going in this direction. In 2007, Egypt asked the competition watchdog to investigate price practices in the cement and steel rebar markets.
Ezz Steel and Alexandria Iron and Steel, also known as Al Ezz Al Dekheila for Steel, dominate the market for steel reinforcement bars, a significant element in building costs. Ezz Steel owns more than 50 per cent of Alexandria Iron and Steel.
A major shareholder is Ahmad Ezz, a senior official of the ruling National Democratic Party (NDP) and part of the NDP business group led informally by Jamal Mubarak, President Hosni Mubarak"s son.
Ezz is a member of the nine-person NDP Policies Secretariat and the party official in charge of organisation.
In August 2008, following a 14-month investigation into the cement sector, a Cairo court fined 20 cement industry executives 10 million Egyptian pounds (Dh6.59 million) each for violations of the monopolies law and price fixing.
The trial, which began in February 2008, was the first of its kind under an anti-monopolies law passed four years ago to bring Egyptian law into line with international practices.