Eastern Tobacco, in which the government owns the majority 55 percent stake, has long held a legal monopoly on cigarette production in Egypt, allowing it to achieve major profits for state coffers. The company’s net profits have grown significantly in recent years, rising from LE908 million in 2014 to more than LE4 billion in 2018.

Governmental policy with regard to monopolies (e.g., permitting, prohibiting or regulating them) can have major effects not only on specific businesses and industries but also on the economy and society as a whole.

There was also no evidence to show that local steel giant Ezz Steel had abused its dominant position in the sector in violation of the law, nor had smaller firms collaborated in anti-competitive practices.