Library / PETROLEUM INDUSTRY ACT, NO. 6, 2021 MIDSTREAM AND DOWNSTREAM PETROLEUM PREVENTION OF ANTICOMPETITIVE PRACTICES AND BEHAVIOUR REGULATIONS, 2026 ARRANGEMENT OF REGULATIONS

PETROLEUM INDUSTRY ACT, NO. 6, 2021 MIDSTREAM AND DOWNSTREAM PETROLEUM PREVENTION OF ANTICOMPETITIVE PRACTICES AND BEHAVIOUR REGULATIONS, 2026 ARRANGEMENT OF REGULATIONS

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arrangement, commercial practice, or trading condition that has the object 
or effect of substantially lessening competition, unless: 
 (a) The arrangement is expressly approved by the Authority under Part XII of 
these Regulations, pursuant to the exemption mechanism in Section 211(2) of 
the Act; or 
 (b) The arrangement is demonstrably justified by verifiable efficiency gains, 
proportional to the commercial objective, and results in tangible consumer 
benefit without unduly foreclosing competition. 
    2.    Application 
(1) This Part applies to, but is not limited to: 
 (a) Exclusive supply or purchase agreements; 
 (b) Long-term contracts, take-or-pay obligations, or minimum volume 
commitments; 
 (c) Tying and bundling of products or services; 
 (d) Loyalty rebates, fidelity discounts, and retroactive pricing incentives; 
 (e) Resale price maintenance and other price-fixing arrangements; 
 (f) Unfair trading terms imposed by dominant suppliers; 
 (g) Anti-competitive restrictions in branded franchise agreements. 
    3.    Common Assessment Criteria 
The Authority shall, in determining whether an arrangement is anti-competitive, 
consider: 
 (a) Duration and scope of the arrangement; 
 (b) Market share and concentration levels; 
 (c) Structure and characteristics of the relevant market; 
 (d) Barriers to entry or expansion; 
 (e) Availability of alternative suppliers, infrastructure, or distribution channels; 
 (f) Foreclosure effects on competitors’ access to essential facilities or 
customers; 
 (g) Impact on consumer choice and effective market access. 
    4.    Enhanced Scrutiny for Dominant Firms 
Where a licensee possesses significant market power, the conduct or 
arrangement shall be presumed anti-competitive unless the licensee 
demonstrates compliance with subregulation 1(b). 
    5.    Notification and Approval 
(1) Any arrangement falling under this Part that may raise competition 
concerns shall: 
 (a) Be notified to the Authority in writing with full disclosure of all terms; 
 (b) Include evidence of pro-competitive justifications and consumer benefit; 
and 
 (c) Receive written approval or exemption before implementation. 
    6.    Enforcement and Remedies 
Where a contravention is found, the Authority may: 
 (a) Declare the arrangement void and unenforceable; 
 (b) Order amendment or termination; 
 (c) Impose administrative penalties under Part XVII. 
 (d) Refer matters to the Federal Competition and Consumer Protection 
Commission.