Oriental Weavers denies ‘anti-competitive behavior’
Oriental Weavers Logo
By

CAIRO: Oriental Weavers Company Wednesday denied “monopolistic practices” and stated that the product distribution system supplies wholesalers and distribution outlets that both carry ownership of Oriental Weavers’ name and others owned by independent dealers.

The company said in a statement to the Egyptian Stock Exchange that the news circulated about the Egyptian Competition Authority referring the company to general prosecution on charges of monopolistic practices is contrary to the letter sent to the company.

The letter said that Oriental Weavers violated the provisions of the law to enter into exclusive contracts with a number of other distributors. The company has denied being referred to general prosecution.

“Oriental Weavers has agreed with several distributors not to distribute products made by any company that it competes with,” The Egyptian Competition Authority said in a statement Tuesday.

“In 2012, we amended all contracts with the distributors and cancelled the exclusivity condition,” Head of Investor Relations Ingy El Diwany told Reuters.

If a court rules against Oriental Weavers, it will face a fine of up to 300 million EGP ($38.3 million,) the statement said.

Oriental Weavers, founded in 1979, is one of the world’s biggest machine-woven carpet makers. It is based in Cairo and distributes its products to more than 130 countries.

Recommend to friends

Leave a comment