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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in the sector. They also apply to industry associations or collaborations
insofar as their activities affect competition in the sector.
PART II-GENERAL PROHIBITION OF ANTICOMPETITIVE PRACTICES OR
CONDUCTS
3. Prohibition of Anticompetitive Conducts
1.
General Prohibition
No licensee, operator, or participant in the midstream or downstream
petroleum sector shall engage in any conduct, arrangement, agreement,
understanding, decision, or practice which has the object or effect of
preventing, restricting, or distorting competition in any part of the market.
2.
Prohibited Practices
The prohibition in subregulation (1) includes, but is not limited to—
(a) agreements or concerted practices between competitors to fix prices, limit
output, allocate markets or customers, or rig bids;
(b) abuse of a dominant position, including unfair pricing, discriminatory
access, refusal to deal, or margin squeeze;
(c) exclusive dealing, tying, bundling, or other contractual restrictions that
foreclose market access;
(d) collusive tendering or coordinated bidding;
(e) conduct that obstructs or undermines open access, third-party access, or
competitive procurement;
(f) misuse of public service obligations to distort competition;
(g) tacit coordination or parallel conduct that achieves equivalent anti-
competitive effects.
3.
Burden of Proof
Where conduct appears likely to substantially lessen competition, the burden
shall be on the licensee to demonstrate legitimate efficiency gains or pro-
competitive benefits.
4.
Guidance
The Authority may issue supplementary guidelines or sector-specific examples
to clarify the scope and application of this Regulation.
5.
Enforcement and Sanctions
Any failure to comply with the requirements under this Regulation shall
constitute a breach of licence conditions and may result in regulatory
sanctions,
including
administrative
penalties,
licence
suspension,
or
revocation, in accordance with Parts XVI and XVII of these Regulations.
4. Invalidity of Anticompetitive Agreements
1.
General Rule
Any agreement or arrangement prohibited under Regulation 3 shall be
deemed invalid, void, and unenforceable ab initio, whether written, oral,
formal, or tacitly implemented.
2.
Types of Invalid Agreements
This includes—
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