Competition Litigation Comparative Guide

• Published date: 15 March 2023
• Subject Matter: ntitrust/Competition Law, Antitrust, EU Competition
• Law Firm: Asgari & Associates
• Author: Ms Anahita Asgari Fard

1 Legal framework

1.1 Which laws regulate competition in your jurisdiction?

For many years, Iran did not have specific competition legislation. However, certain provisions on competition law issues were included in different statutes. Examples of the Iranian competition provisions prior to 2008 included:

• Articles 1 and 2 of the Civil Responsibility Act (1960);
• Article 133 of the Bill of Amendment of the Commerce Code (1969); and
• Article 64 of the Electronic Commerce Act (2004).

Iran introduced its first Competition Law in 2008 in Chapter 9 of the Privatisation Act (the Act of Implementation of Principle 44 of the Iranian Constitution Law). The stated objectives of the Competition Law are to promote competition and prohibit monopolies. The Competition Law addresses various issues, including pricing, tying agreements and territorial restrictions.

In 2016 the Parliament ratified the Executive Bylaw on Research, Investigations, Complaints Handling and Enforcing Anti-competitive Decisions.

1.2 Which authorities are responsible for enforcing the competition legislation? What is their general approach to enforcement?

Under Article 53 of the Competition Law, the Competition Council (CC) was created to enforce the competition legislation. In addition, to handle the professional, executive and other affairs of the CC, the National Competition Council was established as an independent government institution under the supervision of the president of Iran.

Certain sectoral regulators, such as the Communication Regulatory Authority, also have specific duties in relation to anti-competitive approaches, according to the relevant regulations.

According to Article 62 of the Competition Law, the CC is the sole authority that investigates anti-competitive conduct and makes decisions accordingly. It will take this action either on its own initiative or based on complaints from natural or legal persons.

In general, the CC has the power to autonomously impose fines and other remedies for infringements of the Competition Law.

2 Private claims

2.1 What types of private claim may be brought for breach of competition law in your jurisdiction?

According to the Competition Law, individuals and companies cannot bring a claim for a breach of the Competition Law directly before the Iranian courts; all claims must first be submitted to the Competition Council (CC).

According to Article 66 of the Competition Law, individuals or legal entities that have incurred losses due to anti-competitive conduct can claim losses and damages before the competent court once the CC has issued its final decision.

In addition, under Article 61 of the Competition Law, the CC can issue the following decisions regarding anti-competitive conduct:

• order the cancellation of any contract, agreement or understanding that involves anti-competitive conduct;
• order the parties to reach agreement in order to stop the anti-competitive conduct;
• order the cessation or repetition of any anti-competitive conduct;
• disseminate general information to make the market more transparent;
• order the removal of directors who have been appointed contrary to the provisions of the Competition Law;
• order the ceding of shares or capital of firms or companies secured contrary to the Competition Law;
• order the suspension or annulment of any merger deemed contrary to the Competition Law or the divestiture of the merger;
• order the return of extra income or the confiscation of property deemed to have been secured through anti-competitive conduct by competent judicial experts;
• order a firm or company to cease activities in any specific field, region or region;
• order a firm or company to observe minimum supply and price ranges under monopoly conditions; and
• impose a cash penalty of between IRR 10 million and IRR 1 billion in case of a violation of the Competition Law.

The claimant can then enforce the CC's decisions through the competent court.

2.2 What is the legal basis for bringing a claim for breach of competition law?

The primary legal basis for damages claims is Article 66 of the Competition Law. However, the Competition Law does not define the types of damages which can be claimed. Therefore, the claimant can seek remedies for all damages incurred according to the Civil Liability Law, except a loss of profit claim, which the Iranian courts cannot accept according to the Civil Procedure Code.

3 Parties

3.1 Who has standing to bring a claim for breach of competition law?

Generally, according to Article 61 of the Competition Law, any natural or legal person that has suffered as a result of a breach of the Competition Law can bring a claim, including:

• the prosecutor general or local prosecutor;
• the State Audit Court;
• general inspection organisations;
• sector regulatory bodies;
• government-affiliated organisations and institutions;
• guild groups;
• consumer rights associations; and
• non-governmental organisations.

Furthermore, the National Competition Council can bring a claim for breach of competition law and initiate an investigation procedure.

3.2 Can a claim for breach of competition law be brought against parties outside the jurisdiction?

A breach of competition law claim should first be submitted to the Competition Council in Tehran, which has exclusive jurisdiction for examining and investigating anti-competitive conduct.

3.3 Can a claim for breach of competition law be brought against individuals, or only companies?

According to Article 43 of the Competition Law, a claim due to a violation of the Competition Law can be brought against both individuals and legal entities.

4 Collective actions

4.1 Is it possible to bring a collective action for breach of competition law in your jurisdiction? If so, what is the applicable regime?

Generally, the Iranian legal system does not recognise collective actions. According to Article 2 of the Civil Procedure Code, the principle of privacy applies to claims and disputes. Therefore, only the person that suffered the loss or its legal representatives can bring the suit in Iran.

Specific regulations in certain sectors, such as the Electronic Commercial Act (2009), allow for collective action by authorising organisations that protect consumer rights to file suit as a petitioner on behalf of consumers.

4.2 Do collective actions proceed on an 'opt-in' or an 'opt-out' basis?

As outlined in question 4.1, the Iranian legal system does not recognise collective actions for breaches of the Competition Law.

4.3 Do...