Oriental Weavers Company announced Monday that the public prosecutor has dropped charges of monopolistic practices against the company on Friday.
The company added in a statement sent to Daily News Egypt that the prosecution did not move forward in the case against the company and dismissed it.
On 18 August, the Egyptian Competition Authority (ECA) referred Oriental Weavers to the prosecution on allegations that the company made deals with distributors that prevented them from selling competitors’ products, in violation of Article 8, Paragraph (c) of the Competition Protection Law.
The public prosecutor had not proven these violations during the investigation conducted during the last period.
The company pointed out that it has never agreed with distributors to prevent the distribution of competitors’ products, adding that the market has not recently seen any shortage of supply.
The company’s investor relations manager Ingy El Diwany said that the documents examined by the public prosecution, along with investigation conducted with the company officials, proved the charges false.
She noted that the company’s operations were not impacted by the investigations. “Manufacturing and marketing activities continued as usual and this can be seen in the financial results,” she added.
Oriental Weavers second quarter 2016 financial results showed a net growth of 43.4%, amounting to EGP 178m, compared a net profit of EGP 124.13m in the second quarter of 2015.
The Oriental Weavers Company, owned by businessman Mohamed Farid Khamis, is one of the largest producers of carpets in the world.