MDPPACPB Regulations

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20. Unfair Trading Terms by Dominant Suppliers 
    1.    Prohibition 
No dominant supplier shall impose on counterparties, unfair, exploitative, or 
unjustifiable contractual terms, or conditions, including but not limited to: 
  
(a) 
Tying arrangements, as defined in Regulation 16 of these 
Regulations, where the purchase of one product or service is made conditional 
upon the purchase of another unrelated product or service. Also as stipulated 
in Section 72(d)(iii) of Federal Competition and Consumer Protection Act and 
Regulation 12(1) of the Abuse of Dominance Regulations, 2022; 
 
(b) 
Non-compete clauses imposed on independent retailers or 
dealers that restrict them from sourcing products from alternative suppliers 
without commercial justification; 
 
(c) 
Forced data sharing requirements where independent stations or 
counterparties are required to disclose competitively sensitive information, 
such as customer lists, pricing structures, or sales volumes, that could be used 
to undermine their competitive position; 
 
(d) 
Unilateral amendment clauses, excessive termination penalties, or 
exclusivity requirements that lack transparency, symmetry, or legitimate 
efficiency justification; 
 
(e) 
Commercial terms imposed solely for the purpose of raising rivals’ 
costs, locking-in buyers, or preventing market entry. 
(2) Assessment for Standard Legitimacy 
Any potentially restrictive or burdensome contractual term shall be evaluated 
by the Authority on whether: 
 
(a) 
It serves a legitimate business rationale such as protecting 
intellectual property, brand quality, credit risk, or investment recovery; 
 
(b) 
It is proportionate to the legitimate interest being protected; 
 
(c) 
It does not substantially lessen competition in any segment of the 
petroleum supply chain. 
 
 
PART VI— PROHIBITION OF ANTI-COMPETITIVE PRICING PRACTICES 
 
21. General Prohibition 
    1.    No Licensee shall engage in pricing conduct, directly or indirectly, that 
has the object or effect of preventing, restricting, or distorting competition in 
the midstream or downstream petroleum industry. 
    2.    Prohibited conduct includes, but is not limited to: 
(a) Margin squeeze; 
(b) Predatory pricing, including targeted predatory pricing and “fighting 
brand” schemes; 
(c) Discriminatory or preferential pricing without objective justification; 
(d) Internal price manipulation between vertically integrated business units 
that disadvantages unaffiliated competitors. 
    3.    These practices are prohibited regardless of short-term consumer benefit, 
where they undermine market structure, reduce choice, or impair long-term 
competition.