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Anti-Trust Compliance in MEDMA

Antitrust Compliance Guidelines and Meeting Rules

Structure

1. Meeting Rules
2.     MEDMA's Antitrust Compliance Program
2.1.    Scope of the Antitrust Compliance Program
2.2.    Antitrust Policy
2.3.    Discussion Topics
2.4.    Minutes (Protocol)
2.5.    Individual Responsibility

1. Meeting Rules

All meetings under the guidance of MEDMA must be accompanied by an openly accessible invitation and agenda at least 2 weeks prior to the respective meeting, during the meeting an attendance list must be circulated, signed and included in the mandatory meeting protocol, which has to be distributed to the meeting attendance (and in some cases to all MEDMA members) not later than one week after the respective meeting.
During the meetings, in particular, MEDMA's antitrust policy prohibits any discussions or exchange of information that might constitute or imply an agreement or orchestrated practice concerning:
(1) prices or price factors, including discounts, rebates, and reductions;
(2) costs and demand structure;
(3) profits and profit margins;
(4) output and sales;
(5) market shares and sales territories;
(6) investments and marketing plans;
(7) bidding or refraining from bidding;
(8) credit conditions or any other terms or conditions of sale; or
(9) selection, rejection, or termination of customers or suppliers.
The prudent rule to be followed at all MEDMA meetings and gatherings is that no commercial topics should be discussed.

These meeting rules apply to all meetings under the guidance of MEDMA.

2.     MEDMA's Antitrust Compliance Program

2.1.    Scope of the Antitrust Compliance Program
Both MEDMA's Antitrust Compliance Program and the Meeting Rules apply to all
activities under the guidance of MEDMA, including, but not limited to, meetings of:
(1) The Annual General Meeting (AGM);
(2) The Executive Committee /EC = Board of Directors);
(3) The MEDMA Operational Office;
(4) The Technical Committee (TC);
(5) The various Working Groups (WG),

2.2.    Antitrust Policy

MEDMA is an international non-profit professional association whose members are competitors. Meetings of competitors under the guidance of such an association are not objectionable as such. However, MEDMA members are not allowed to use the forum provided by MEDMA in order to coordinate their commercial activities. Each MEDMA member company must exercise its independent business judgment in pricing its products and service, dealing with its customers and suppliers, and choosing the markets in which it will compete. Any activity that could create even the appearance of a restriction or distortion of competition must be strictly avoided.

It is MEDMA's undeviating policy to comply strictly with the letter and spirit of any antitrust law and similar laws in the GCC Member States and other countries in particular those which:
(1)directly or indirectly fix purchase or selling prices or any other trading conditions;
(2) limit or control production, markets, technical development, or investment;
(3) share markets or sources of supply;
(4) apply dissimilar conditions to equivalent transactions with trading parties, thereby placing them at a competitive disadvantage;
(5)make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts."

Any activities of MEDMA Members (or their appointed delgates/representatives) or MEDMA ́s own staff which violate these and other applicable antitrust laws are detrimental to the interests of the Association and its Members, and are unequivocally contrary to MEDMA's policy.

2.3.    Discussion Topics

Some antitrust law, in principle, prohibits the exchange of commercially sensitive and current market information which competitors normally keep secret. It is impossible to provide an exhaustive list of objectionable discussion topics as the competitive significance of many issues is dependent upon the context in which they are raised.

However, it is MEDMA's strict policy to follow a prudent rule in relation to antitrust issues. Therefore, no commercial topics outside the scope of MEDMA ́s mission should ever be acted upon, or even considered, at MEDMA meetings and gatherings. MEDMA meeting discussions shall be limited to (written) agenda topics and minutes shall be provided.

In particular, MEDMA's antitrust policy prohibits any discussions or exchange of information between its Members that might constitute or imply an agreement or orchestrated practice concerning:
(1) prices or price factors, including discounts, rebates, and reductions;
(2) costs and demand structure;
(3)profits and profit margins;
(4)output and sales,
(5)market shares and sales territories;
(6) investments and marketing plans;
(7)bidding or refraining from bidding;
(8) credit conditions or any other terms or conditions of sale;
(9) selection, rejection, or termination of customers or suppliers.

2.4.    Minutes (Protocol)

Official minutes are produced for each meeting under the guidance of MEDMA's staff. They are the official record of the Association (Details see also in: 1. Meetings)

2.5.    Individual Responsibility

It is the responsibility of each MEDMA Member and MEDMA ́s Staff to take individual accountability for compliance with national laws and avoid discussions in any matters outside the scope of MEDMA's mission.


The MEDMA Executive Committee

Dubai, 15 November 2007