Egypt: TMT Comparative Guide

1 Legal and enforcement framework

1.1 Which legislative and regulatory provisions govern the following in your jurisdiction: (a) Telecommunications; (b) Internet; (c) Media and (d) Social media?

(a) Telecommunications

The key law governing the telecommunications sector in Egypt is the Telecommunications Regulatory Law (10/2003), as amended, which regulates telecommunications networks and services. Additionally, several key laws, regulations and decrees pertain to the telecommunications sector, including:

• Presidential Decree 236/1985 ratifying the Convention of the International Telecommunications Union;
• Presidential Decree 128/2006 regulating the competence of the National Telecoms Regulation Authority (NTRA) to resolve certain disputes;
• Presidential Decree 379/1999 regulating the Egyptian Ministry of Communication and Information;
• the E-signature Law (15/2004) and its executive regulations; and
• the Investment Law (72/2017), as amended, and its executive regulations.

(b) Internet

The following laws and regulations govern the Internet in Egypt:

• the Telecommunications Regulatory Law as amended;
• the Investment Law;
• the Anti-Information Technology Crimes Law (175/2018) and its executive regulations;
• the Media and Journalism Law (180/2018) and its executive regulations;
• the Data Protection Law (151/2020);
• Articles 201 to 206 of the Central Bank and Banking System Law (194/2020), as amended and its executive regulations;
• Articles 1 to 3 of the Anti-Terrorism Law (94/2015);
• Article 1 of the Consumer Protection Law (181/2018) and its executive regulations; and
• the Media Licensing Regulation (26/2020), as amended.

(c) Media

The following laws and regulations govern the media sector in Egypt:

• the Media and Journalism Law;
• the Media Licensing Regulation;
• the Investment Law;
• Presidential Decree 363/2020 Establishing the Supreme Council for Media Regulation;
• Prime Minister Decree 411/2000 Establishing the Media Public Free Zone; and
• Supreme Council for Media Regulation (SCMR) Decree 62/2019 regulating the necessary controls and standards to ensure the commitment of press and media institutions to the principles and ethics of the profession.

(d) Social media

There are currently no standalone laws and/or regulations that specifically address social media in Egypt. Nevertheless, social media platforms are still regulated by certain laws and regulations, including:

• the Media Law;
• the Media Licensing Regulation;
• the Cybercrime Law;
• the Data Protection Law; and
• the Investment Law.

The Communications and Information Technology Committee of the House of Representatives is currently in the process of drafting legislation that specifically addresses social media.

1.2 Which bodies are responsible for enforcing the applicable laws and regulations in the relevant sectors? What powers do they have?

Telecommunications: By virtue of the Telecommunications Regulatory Law, the National Telecoms Regulation Authority (NTRA) is the exclusive authority tasked with enforcing the applicable laws and regulations of the telecommunications sector. The powers of the NTRA include:

• issuing the necessary licences and/or permits to conduct activities or operations in connection with the telecommunications sector;
• monitoring and supervising stakeholders; and
• ensuring compliance with all rules issued by the NTRA in relation to the telecoms sector.

The Information Technology Industry Development Agency mainly aims to support the promotion and development of information technology and e-commerce, and of projects used for electronic means. It is also empowered to issue licences for e-signature activities.

Media: The SCMR is mainly empowered by Article 68 of the Media Law to regulate the media sector. The SCMR is empowered to:

• monitor media outlets;
• ensure that they abide by the requirements of the SCMR; and
• issue the necessary licences.

The NTRA also monitors compliance with the Media Law in collaboration with the SCMR on matters that coincide with the scope of authority of the NTRA.

Internet and social media: Government bodies such as the NTRA, the SCMR and the Data Protection Agency (yet to be established) are the current bodies with competence to monitor internet and social media activities.

1.3 What is the general approach of those bodies in regulating the relevant sectors?

The general approach of the regulators involves:

• guaranteeing the accessibility of services;
• promoting the economic development of relevant sectors;
• maintaining the stability and protection of national security and community values;
• monitoring compliance with all applicable laws and regulations;
• promoting a free, competitive independent market;
• monitoring stakeholders to ensure that they adhere to the terms of applicable licences and regulations;
• staying actively aware of global developments; and
• ensuring compliance with the applicable industry standards.

1.4 What other industry codes of conduct or best practices are applicable in the relevant sectors?

Several industry codes of conduct/best practices have been adopted in the TMT sector in Egypt, including:

• the NTRA's Quality of Service Regulations for Telecommunications. In accordance with international standards, the NTRA also continuously monitors internet service providers' (ISPs) satisfaction of key performance indicators. Additionally, the NTRA has adopted the Telecoms Users' Rights Protection General Guidelines and the General Rules and Conditions for Protecting Internet Consumer' Rights in Egypt;
• the cybersecurity frameworks and standards issued by EG-CERT, an entity that is part of the NTRA, including:
• • the Internet of Things Cybersecurity Framework;
  • the Low Earth Orbit Satellite Cybersecurity Framework;
  • the 5G Cybersecurity Framework; and
  • the Malware Protection Policy and Smart Cyber Threat Control;
• the National Cybersecurity Strategy 2017–2021 and the National Cybersecurity Strategy 2022–2026 issued by the Ministry of Communication and Information Technology; and
• the Outsourcing Destination Guide for Egypt's Information Technology Outsourcing, Business Processing Outsourcing and Shared Services Industry published by the Egyptian Information Technology Industry Development Agency in collaboration with the German Outsourcing Agency.

2 Ownership

2.1 Who is eligible to provide services in the following sectors in your jurisdiction? Are there any restrictions on foreign ownership? Do any domicile requirements apply? What other requirements or restrictions apply in this regard: (a) Telecommunications; (b) Internet; (c) Media and (d) Social media?

Generally speaking, Article 3 of the Investment Law provides that foreign investors should be treated similarly to Egyptian nationals. Accordingly, other than having an established entity in Egypt, there are no specific limitations on foreign ownership with regard to telecommunications. There are, however, certain limitations for the ownership of companies by non-Egyptians if the company is operating in the Sinai Peninsula.

(a) Telecommunications

Although no specific ownership restrictions are set out in the applicable laws, activities relating to telecommunications are subject to extensive regulatory and security screening prior to the issuance of the required governmental approvals and licences.

(b) Internet
(c) Media
(d) Social media

In relation to media outlets (ie, television and radio) and websites, Article 52 of the Media Law sets ownership limitations for non-Egyptians. It states that foreign individuals or entities cannot directly hold a majority share in a company or a percentage that affords control over the company.

3 Authorisations/licences

3.1 What authorisations and/or licences are required to operate in the following sectors? Do any exemptions apply? Do these vary depending on the service to be provided: (a) Telecommunications; (b) Internet; (c) Media and Social media?

(a) Telecommunications

With the exception of establishing or operating a private communications network that does not use wireless communication systems, telecommunications activities require a licence from the National Telecoms Regulation Authority (NTRA). Currently, the NTRA issues four main types of licences (with various specific sub-licences falling under them):

• fixed services licences (including landline services licences and data services licences);
• wireless services licences (including mobile services licences, satellite services licences, wireless trunk services licences, Automated Vehicle Location (AVL) licences and navigation licences);
• international services licences to construct and operate international telecoms gateways; and
• licences to construct, operate and lease infrastructure for telecoms networks (ie, infrastructure leasing).

Additionally, if a licence is not covered under the licensing system, a company may still apply to the NTRA for a new licence, detailing the activities it intends to undertake; and the NTRA may consider issuing such a licence.

In the case of new items or equipment introduced to the Egyptian market (whether through import, manufacture, assembly or usage) that relates to telecommunications, the NTRA will also issue 'type approvals' to ensure compliance with all telecommunications regulations. There are several tiers of type approvals, as follows:

• the light scheme;
• the intermediate scheme; and
• the tight scheme.

Determining which tier applies depends on several factors, including:

• the country of manufacture; and
• the existence of International Organization for Standardization certification.

The Information Technology Industry Development Agency (ITIDA) is responsible for licences relating to e-signatures. Currently, only four companies have such a licence in Egypt, in addition to the licence which is granted by the Ministry of Finance (Government Electronic Certification Authority). This licence is granted on a needs basis, rather than on a request basis.

One arm of the ITIDA, the Egyptian Root Certificate Authority, issues digital certificates to certificate service providers for the provision of a solid base or digital infrastructure for e-commerce platforms and applications, as well as the use of e-signatures in Egypt.

(b) Internet

The data services licence mentioned above includes the following sub-licences:

• Internet Service Provider – Class A, for internet connectivity (Class A) and Voice Over Internet Protocol services provision; and
• Internet Connectivity – Class B.

In some cases, a licence or approval may also be required from the Supreme Council for Media Regulation (SCMR) if the scope of activities intersects with its authority.

(c) Media

It is not permitted to establish, operate or advertise any media outlet or website without the necessary licence from the SCMR. A licence is also required for any content distribution services.

(d) Social media

In addition to the licences required for media operators, non-Egyptian media outlets and their websites, and non-Egyptian websites that provide news, media or e-commerce advertising services that include content relating to the promotion of businesses, services, products or people, and that wish to operate in Egypt, must obtain a licence from the SCMR.

3.2 What are the key features of such authorisations/licences?

Each licence contains a set of prerequisites depending on the activity/operations undertaken by the applicant. The main requirements are as follows:

• The applicant must possess relevant experience in the field;
• The applicant must have adequate financial standing, sufficient to carry out the relevant activities; and
• The applicant must provide details of the pricing mechanism and the basis of the services to be provided.

The key features of the Class A licence, for example, are as follows (last updated May 2023):

• a five-year integrated feasibility study (including a marketing strategy and a capital and market analysis);
• a validity period of 10 years, which can be renewed for a further period of five years; and
• the following financial commitments:
• • annual fees: 3% of the service provider's profits under the licensed service;
  • licence fees: EGP 50,000 annually (which can be amended); and
  • insurance: EGP 2 million as a guarantee for compliance.

3.3 What are the procedural and documentary requirements to obtain such authorisations/licences?

To obtain a licence from the NTRA, the applicant must submit an application to the NTRA together with all necessary documents and information. The NTRA then examines the application and may conduct meetings with the applicant to discuss the application and make any inquiries. The NTRA then considers the application from a regulatory, technical and financial perspective, and will inform the applicant of its decision within 90 days of the date of submission of all required documents and information.

The documents required mainly include:

• the details of the applicant (including shareholding structure and capital contribution);
• proof of the applicant's experience in the field;
• the applicant's last three audited financial statements and the pricing plan (as well as details of any financing that the applicant is receiving);
• a five-year integrated feasibility study (with specific items set out by the NTRA); and
• an integrated financial plan for the feasibility study.

To obtain a licence from the SCMR, the applicant's constitutional documents are required, along with details of the planned operations and budgeting. Specific details pertaining to each licence are covered by the Media Licensing Regulation.

3.4 What does the authorisation/licensing process involve? How long does it typically take? What costs are incurred?

The process commences with the submission of the application and the fulfilment of all requirements and documents. If documents or information are missing or unclear, the relevant authority may convene with the applicant to discuss. In all cases, once all documents and information have been provided, a decision should be made within 90 days.

All licences require the payment of a licensing fee, as well as renewal fees. Each licence has separate fees depending on the operations and the type of licence. The fees can range from EGP 5,000 to several million Egyptian pounds, depending on various factors.

3.5 What are the ongoing rights and obligations of the authorisation/licence holder? How is compliance monitored? What penalties may be imposed for breach?

The licence issued by the NTRA will specify the key obligations of the licence holder, such as:

• the geographical limitations for service provision, the wireline and wireless coverage plan and the implementation stages;
• service quality and efficiency standards that are expected to be maintained;
• an obligation to ensure the continuity of services and the procedures to be followed in case of service interruption or suspension;
• an obligation to abide by the service price, the collection method and the marketing plan for implementation throughout the licensing term;
• an obligation to provide services to users without discrimination;
• an obligation to abide by the national numbering system set forth by the NTRA and the universal service requirements;
• an obligation to ensure the confidentiality of communications and calls of customers; and
• an obligation to provide services in accordance with the rules on free and fair competition.

The NTRA and the SCMR are the main authorities responsible for monitoring compliance with the licensing terms and the applicable laws.

Establishing or operating telecommunications networks or communications infrastructure, providing communication services and forwarding international telephone calls by any means without obtaining a licence from the NTRA is punishable by imprisonment for between six months and five years and/or a fine of between EGP 50,000 and EGP 500,000. Moreover, all equipment, devices and connections used to commit the crime will be confiscated; and the court may decide on its own initiative to order the guilty party to pay appropriate compensation in the case of forwarding international calls. The NTRA also requires insurance of EGP 2 million as a guarantee for compliance with the terms of the licence.

Operating websites or media outlets without the requisite licence from the SCMR is punishable by:

• a fine of between EGP 1 million and EGP 3 million; and
• the confiscation of equipment, devices and their components that were used to commit the crime.

In the event of recurrence, the penalty will be doubled.

3.6 For how long is the authorisation/licence valid? Are variations to the terms possible? How is the authorisation/licence renewed?

The NTRA's licence terms vary according to the type of service provided and the licence itself. The bracket as it currently stands ranges from one year to 20 years.

The SCMR's licence terms are typically five years.

The ITIDA's licence will not exceed 99 years.

3.7 Can an authorisation/licence be transferred? If so, what is the process for doing so?

The holder of a licence issued by the NTRA cannot assign or transfer the licence in whole or in part to a third party without the prior approval of the NTRA. Breach of this condition is punishable by imprisonment for at least three months and/or a fine of between EGP 20,000 and EGP 100,000, in addition to revocation of the licence.

The holder of a licence issued by the SCMR may not assign or transfer the licence in whole or in part to a third party, or merge with another institution, without the prior written approval of the SCMR, in accordance with the conditions it specifies. Moreover, broadcasting spaces within licensed media outlets may not be rented to third parties without a permit issued by the SCMR. Breach of this condition is punishable by a fine equal to twice the value of the transferred share, with the assignment considered null. Moreover, if the assignment was perfected or a share exceeding the majority of the company's shares was transferred to a third party, the licence will be suspended for a period of two years and the guilty party will be fined.

4 Telecommunications

4.1 What provisions apply to the construction of telecommunications infrastructure and the installation of facilities on public and private property?

The Telecommunications Regulatory Law and administrative decisions issued by the National Telecom Regulation Authority (NTRA) govern this issue. A licence for the construction, operation and lease of infrastructure for telecommunications networks must be obtained from the NTRA, along with one of the following sub-licences as appropriate:

• a licence to establish, operate, manage and lease infrastructure for telecommunications networks and the usage of frequencies;
• a licence to construct and lease telecoms towers;
• a licence to construct, operate and lease marine cables and infrastructure for international communications; and
• a licence to construct and operate access networks within closed urban communities (access inside closed compounds).

4.2 Do any universal service obligations apply in your jurisdiction? If so, what are they and how are they funded?

Yes. Operators must:

• not discriminate among consumers based on location, health status, race, colour, religion or ethnicity;
• provide free emergency calls;
• submit bills to users in accordance with the basic rules on bill collection in Egypt, which must include detailed information about usage and accord with the policies issued by the NTRA;
• provide maintenance services for their equipment;
• ensure network integrity and provide network services in case of serious disturbances or disorder that might affect network functioning;
• publish information on their service disconnection policy (if any), tariffs, subscription and connection fees; and
• abide by the quality of service parameters as stipulated by the NTRA in the licence and/or in NTRA rules and regulations.

Additionally, all licences require observance of the universal service obligations.

With regard to funding, the surplus from the NTRA's budget is transferred annually to the Universal Service Fund (USF) set up by the NTRA. Disbursements from the USF are made for:

• infrastructure projects required to achieve the universal service base for telecommunications;
• reallocation of frequency spectrum;
• projects relating to the National Communication and Information Plan; and
• compensation of telecoms operators and service providers for price differences between the approved economical price for the service and the price that may be determined by the state in favour of users.

Operators in Egypt must also contribute to the USF up to 1% of their adjusted gross revenue (as specified in the licence) for the implementation of universal service.

4.3 How is interconnection regulated in your jurisdiction? What rules and requirements apply in this regard? Are interconnection and network access charges subject to price regulation?

The Telecommunications Regulatory Law regulates interconnection. Operators must collaborate in order to:

• disclose necessary technical specifications and data on the services provided;
• conclude agreements between each other to achieve interconnection according to reasonable conditions that do not discriminate between service providers, which must be submitted to the NTRA for approval, or join agreements that have already been concluded and approved by the NTRA in this regard; and
• provide all necessary data to prove and determine the extent of any damage caused to the service provider as a result of the actions of a subscriber of the network of another service provider, based on a request by the injured service provider and with the approval of the NTRA.

Currently, bilateral interconnection agreements are in force between mobile operators in Egypt.

The NTRA requires that all agreements include:

• regulatory terms (eg, validity period, IP rights, competition, guarantees);
• technical terms (eg, types of services, quality standards, interconnection points); and
• economic terms (eg, interconnection charges, billing, cost calculation structures).

4.4 What rules and requirements govern the allocation and use of telephone numbers in your jurisdiction?

The Telecommunications Regulatory Law governs the allocation and use of telephone numbers in Egypt. The law assigns multiple objectives to the NTRA, including establishing a National Numbering Plan and monitoring its application. The NTRA is also competent to – and regularly does – amend the plan as needed. All service providers in that respect are required by their licence terms to abide by the National Numbering Plan.

4.5 What rules and requirements govern number portability in your jurisdiction?

The NTRA issued an updated practical guide on mobile number portability in June 2020, which governs changing mobile networks while maintaining the same mobile number, in accordance with the Telecommunications Regulatory Law.

4.6 Are retail customer charges subject to price regulation in your jurisdiction?

Yes. When applying for a licence to the NTRA, applicants must present:

• the intended pricing mechanism;
• the methods of collection; and
• the methods by which these will be announced.

They must also include the basis of such pricing in their feasibility study, which will be subject to the NTRA's assessment and approval. No mandatory pricing is imposed at the regulatory level.

4.7 Are retail customer terms and conditions subject to regulation in your jurisdiction?

Yes, the Telecommunications Regulatory Law establishes standards of protection for retail customers (eg, maintaining a certain level and quality of service; ensuring the confidentiality of customer data). The NTRA has the supervisory power to monitor compliance and has an internal arm which:

• receives complaints;
• investigates them;
• discusses them with the NTRA Committee for the Protection of Users' Rights; and
• requires remedial action by service providers.

In addition, service providers must conclude written contracts with their customers which follow minimum requirements set by the NTRA, such as in relation to:

• the type of services;
• payment;
• duration;
• defaults; and
• remedies.

5 Spectrum use

5.1 How is spectrum use authorised in your jurisdiction? Do any exemptions apply?

Spectrum use is also governed by the Telecommunications Regulatory Law, and the National Telecoms Regulation Authority (NTRA) is competent to manage and regulate the use of spectrum. The NTRA also maintains an internal committee called the Frequency Regulation Committee, which handles the management of spectrum use.

The holder of a licence from the NTRA may use any frequency or spectrum of frequencies. The NTRA also issues regulatory guides for the grant of such licences. The sole exceptions in this regard are for:

• spectrum designated by the International Telecommunications Union (ITU) for services solely provided by the Egyptian Radio and Television Union; and
• any existing frequencies used by the Egyptian Radio and Television Union in airing and distributing its programmes.

5.2 What is the procedure for allocating spectrum in your jurisdiction?

The NTRA handles all matters relating to the regulation of spectrum use, including spectrum allocation. In that respect, the NTRA has issued a National Frequency Allocations Table, which is "the governing framework for the supply of radio spectrum in Egypt". Last updated in June 2021, it sets out the allocation of various radiocommunication services to the frequency bands. The table is regularly revised in light of updates to the ITU Radio Regulations.

5.3 How long does it typically take? What costs are involved?

A decision on the grant of a licence will be issued within 90 days of the date of submission of the application together with all necessary documents and information. This is without prejudice to any requirements that the Armed Forces or national security agencies may require.

The licence requires the payment of a licensing fee. The NTRA issues updated guidelines on the applicable fees depending on:

• the system;
• the frequency band;
• the coverage area; and
• the coverage factor.

Certain services are exempt from the licensing fees, such as:

• private Wi-Fi networks (residential);
• short-range devices; and
• Global Positioning System and wireless local access network devices operating in frequency bands 2.4 gigahertz (GHz) and 5.8 GHz.

5.4 What are the penalties for unauthorised spectrum use or breach of authorisation?

Spectrum use without a licence is punishable by a fine of between EGP 10,000 and EGP 50,000. In the event of recurrence, the penalty is doubled.

5.5 Can a spectrum authorisation be transferred? If so, what is the process for doing so?

Yes; however, the licence holder may not assign or transfer the licence to a third party without the prior approval of NTRA. Breach of this condition is punishable by imprisonment for at least three months and/or a fine of between EGP 20,000 and EGP 100,000, in addition to revocation of the licence.

6 Internet

6.1 What provisions apply to high-speed broadband in your jurisdiction? Are there any government incentives to promote broadband penetration?

Based on the applicable laws, there are no specific provisions that address high-speed broadband in Egypt. However, as the National Telecoms Regulation Authority (NTRA) is the exclusive authority for monitoring the telecommunications sector, there are implicit requirements that may be inferred from the NTRA's Internet Service Provider – Class A licence. In order to obtain a licence, companies must have a certain standard of quality and tangible experience in the field. This creates an inferred and implicit requirement for companies that wish to provide high-speed broadband in Egypt (see question 2.1 on the telecommunications ownership requirements). Additionally, certain standards can also be inferred from the NTRA's objectives – that is, ensuring the enhancement and deployment of services "in compliance with the most advanced technologies".

The Egyptian government has adopted several initiatives and incentives to promote broadband penetration, including:

• the Universal Service Fund, an NTRA initiative which aims to incentivise internet service providers to provide services for Egyptians in 'economically non-feasible regions' by offering them subsidies and tax incentives; and
• the EMisr National Broadband Plan, a project designed to increase internet access and improve the quality of the broadband infrastructure.

These initiatives are also intended to work in unison with Egypt's 2030 Information and Communications Technology Strategy and the Internet of Things Framework.

6.2 What net neutrality regulations apply in your jurisdiction? Are any exemptions and/or exceptions available?

While there are no specific regulations or provisions that directly address net neutrality, several provisions of domestic law are relevant in this regard:

• The Constitution provides protections for freedom of expression and access to information. Specifically, Article 65 states that individuals shall "have the right to express [their] opinion verbally, in writing, through imagery, or by any other means of expression and publication".
• Under the Telecommunications Regulatory Law, the main tenets of the NTRA include:
• • free competition; and
  • the organisation and development of the telecoms sector in a manner that reflects the latest technological developments and fulfils "all the needs of the users".

As these provisions recognise and protect similar concepts under the umbrella of net neutrality, they could be interpreted in its favour. That said, there are no regulations or provisions that specifically govern net neutrality in Egypt. In practice, these rules are interpreted in ways that capture the Egyptian culture and good manners.

6.3 Are internet service providers (ISPs) obliged to block or restrict access to specific websites or types of content in your jurisdiction?

Yes, ISPs can be obliged to block and/or restrict access to specific websites or forms of content. This is primarily governed by the Anti-Terrorism Law, which severely penalises:

• the direct or indirect promotion of terrorist acts (Article 28); and
• the creation or use of a website for the purpose of promoting terrorist convictions or ideas (Article 29).

Additionally, Article 49 provides that the public prosecutor or the competent investigatory authority may block such websites. This is also supported by Article 7 of the Anti-Information Technology Crimes Law, which stipulates that the competent investigatory authority may order the blocking of certain websites or information that is deemed to be a threat to Egypt's national security or to endanger the country's security or economy.

Articles 27 and 30 of the same law also provide criminal penalties for:

• those that operate such websites; and
• internet service providers (ISPs) in general if they abstain from executing a ruling issued by the specialised Criminal Court to ban or a specific website or link.

Additionally, in exceptional circumstances, the relevant investigatory authority may request that the NTRA temporarily block certain online content. As such, the ISP will be obliged to abide by such a request.

6.4 Is the use of virtual private networks permitted in your jurisdiction?

Yes, the use of virtual private networks (VPNs) is permitted in Egypt, although certain limitations do apply. Additionally, Egyptian law and the NTRA distinguish between the obligations of private citizens and those of ISPs. While private citizens are allowed to use VPNs, ISPs that hold a Class A licence to operate in Egypt are subject to the licence terms. Specifically, Article 11 of the NTRA's Terms and Conditions for ISPs – Class A Licence stipulates that:

In any case, the Anti-Information Technology Crimes Law criminalises the access or attempted access of any blocked website. Accordingly, if a VPN is used to access a blocked website, the user will be subject to the penalties listed in the Anti-Information Technology Crimes Law and the Anti-Terrorism Law.

6.5 In what circumstances will ISPs be held liable for offending content carried on their networks? What defences are available?

In accordance with the Anti-Information Technology Crimes Law, the Telecommunications Regulatory Law and Anti-Terrorism Law, ISPs may be held liable for continuously allowing access to websites that promote certain acts which are deemed illegal under the aforementioned laws, including threats to national security. Additionally, ISPs can be held liable in case of non-compliance with a request from the NTRA or the specialised Criminal Court to block or limit access to a specific website or online platform. As for the possible available defences, when it comes to non-compliance with an order issued by the public prosecutor and/or by the security authorities, there are almost none. As regards contributions to, or the direct display of, offensive content, the available defences differ and will depend on several factors, including:

• the role that the company or individual has played in the case at hand; and
• the nature of the offence.

6.6 How are digital platforms regulated in your jurisdiction?

While there are no specific laws aimed at digital platforms, several laws may apply, including:

• the Data Protection Law;
• the Consumer Protection Law;
• the Media Licensing Regulation;
• the Anti-Information Technology Crimes Law; and
• the Telecommunications Regulatory Law.

These laws provide for:

• specific protection for users that engage with digital platforms;
• the necessary licences required by companies; and
• liability in case of breach by either the user or the service provider.

7 Media

7.1 What rules and requirements apply to public broadcasters in your jurisdiction?

Public broadcasters are primarily subject to the Media Law. They are also supervised by the Supreme Council for Media Regulation (SCMR). Additionally, the Media Law requires public broadcasters to obtain a licence from the SCMR when establishing, operating or advertising any media outlet or website. A licence is also required for all content distribution services. Foreign ownership of a broadcaster cannot be majority ownership or a percentage that entitles the foreign party to management control.

7.2 What rules and requirements apply to commercial broadcasters in. your jurisdiction?

Commercial broadcasters are primarily subject to the Media Law. They are also supervised by the SCMR. The Media Law requires commercial broadcasters to obtain a licence from the SCMR when establishing, operating or advertising any media outlet or website. A licence is also required for all content distribution services.

Foreign ownership of a broadcaster cannot be a majority ownership or a percentage that entitles the foreign party to management control. The licensed capital of the commercial broadcaster should be at least:

• EGP 50 million (television news and public broadcasting);
• EGP 30 million (television);
• EGP 15 million (radio); or
• EGP 500,000 (digital).

Exceptions may be made to the capital requirements by virtue of a reasoned decree issued by the SCMR evidencing the public benefit of such an exception.

7.3 Do any 'must-carry' obligations apply in your jurisdiction? If so, what are they and how are they funded?

No 'must-carry' obligations have yet been imposed in Egypt. However, in practice, most cable providers offer at least two or three active public broadcast channels.

7.4 Do any local content requirements apply in your jurisdiction? Do any restrictions apply to foreign content? What exemptions and/or exceptions are available?

General content requirements apply, regardless of whether such content is local or foreign. This is subject to the supervision of the SCMR.

7.5 What other content requirements and restrictions apply in your jurisdiction? Do these vary depending on the distribution channel (eg, traditional broadcast media versus new media)?

Aside from licensing requirements, freedom of expression, journalism and the media is enshrined in the Constitution and the applicable laws. Nevertheless, all content provided must comply with all laws, treaties and regulations applied in Egypt, and must consider local traditions and ethics.

For example, any content that promotes the violation of applicable laws, racism, discrimination, violence or hatred is prohibited. Broadcasters are also prohibited from:

• basing their operations on religious, gender or racial discrimination, or anti-democratic views; and
• broadcasting or promoting pornographic or violent content.

SCMR Decree 62/2019 sets out:

• the necessary controls and standards:
• • to ensure the commitment of press and media institutions to the principles and ethics of the profession; and
  • to preserve the IP rights related to press and media content;
• the professional rules and standards that control journalism, media and advertising; and
• some written norms (codes).

7.6 How is advertising regulated in your jurisdiction? Does this vary depending on the distribution channel?

Advertising is mainly regulated by the Media Law. The same restrictions on content outlined in question 7 apply to advertising. Special provisions may also apply to ads for specific products, such as pharmaceuticals. Further requirements also apply to advertising under other applicable laws, such as the requirement:

• to include the tax number of the manufacturer of the advertised product; and
• to notify the Tax Authority of all ads posted and pay the requisite tax.

The Media Law distinguishes between Egyptian and foreign advertising companies/media broadcasters. Foreign companies that do not have a legal presence in Egypt must obtain authorisation from the SCMR and establish a representative office from which to operate; and must also fulfil other requirements in order to obtain and maintain the authorisation.

8 Competition

8.1 What competition-related provisions (eg, structural or functional separation requirements; significant market power requirements; media plurality rules) apply in the following sectors: (a) Telecommunications; (b) Internet; (c) Media (broadcasting + print) and (d) Social media?

(a) Telecommunications

Pursuant to the Telecommunications Regulatory Law, the National Telecoms Regulation Authority (NTRA) sets out a general framework for free competition which determines the policy to be followed to ensure a competitive and liberalised environment. Accordingly, if a structural or functional separation is required as per the NTRA's instructions, the relevant operator should comply with this requirement. Further, significant market power is measured by various methods, such as:

• the percentage of market share (as per local studies);
• the volume of investment and profits compared to market capacity;
• vertical integration of services and bundling of services packages;
• the ability to influence and control market and access to services; and
• exclusivity of expertise and knowledge.

(b) Internet

Both the NTRA and the Supreme Council for Media Regulation (SCMR) are competent to review online content to ensure compliance with their respective laws.

Hence, the NTRA's competition standards also apply to the Internet. The SCMR aims:

• to ensure and protect the freedom of the press and media within the framework of free competition; and
• specifically, to ensure that economic activity in the press and the media does not prevent, restrict or harm freedom of competition, and to prevent monopolistic practices in the press and the media.

(c) Media (broadcasting + print)

Under the Media Law, public and private media are supervised by the SCMR, which aims to ensure fair competition. Additionally, the SCMR monitors content published by broadcasters to ensure that:

• no competitors commit offences or harm each other in any way; and
• no monopolistic acts are practised using broadcasting platforms.

(d) Social media

There are no specific competition-related regulations regarding social media in Egypt. Therefore, the Media Law applies in this regard.

8.2 To what extent can the national competition regulator intervene in the relevant sectors? What is the interplay between the competition regulator and the various sectoral regulators?

The sectoral regulators and the national competition regulator have different mandates, responsibilities and objectives. While the sectoral regulators primarily focus on eliminating risks in a specific sector by putting in place a regulatory structure, the Egyptian Competition Authority (ECA) aims to protect competition by preventing anti-competitive practices across all sectors. It is responsible for enforcing the competition legislation in all sectors, including those that have their own sectoral regulator (except for the banking sector). Pursuant to Article 11/10 of the Competition Law, the ECA will "coordinate with sectoral regulators on matters of common concern".

The ECA interacts with the sectoral regulators through formal or informal agreements. As for the formal agreements, the ECA has signed a memorandum of understanding with the NTRA to prevent anti-competitive practices that would have a negative effect on telecommunications services through the exchange of expertise between both authorities. Additionally, the ECA is a member of the SCMR, to ensure that market players in the press and media sector do not prevent, restrict or harm competition.

8.3 How are mergers and acquisitions in the relevant sectors treated from a competition perspective?

The latest amendments to the Competition Law, issued in 2022, included a pre-merger control regime. Under the mandatory merger control regime, parties are temporarily prevented from consummating a merger until they have received clearance from the ECA, which has the power to review and approve proposed mergers and acquisitions before they can be completed (or signed, as applicable). The prior approval regime applies to transactions resulting in economic concentrations which meet certain financial thresholds. This gives entities legal certainty and saves them a great deal of time and financial resources, given that anti-competitive effects resulting from an increase in market power may outweigh the benefits to be reaped by the merging parties in terms of productive efficiencies.

8.4 What other specific challenges or concerns do the relevant sectors present from a competition perspective?

There has been a historical friction between the NTRA and the ECA with regard to the extent of the supervisory powers of each regulatory body over 'non-discrimination' in the telecommunications arena. The two watchdogs have entered into a memorandum of understanding; however, some ambiguities remain and telecommunications players may not know which instructions to follow in case of any contradiction.

9 Data security and cybersecurity

9.1 What data security regimes apply in the following sectors: (a) Telecommunications; (b) Internet; (c) Media (broadcasting + print) and (d) Social media?

• The Personal Data Law;
• The Central Bank of Egypt's Banking Law (194/2020), as amended;
• The Anti-Information Technology Crimes Law;
• The Telecommunications Regulatory Law; and
• The Law Regulating the Development and Use of Financial Technology in the Non-Banking Financial Activities (5/2022).

9.2 What cybersecurity regimes apply in the following sectors: (a) Telecommunications; (b) Internet; (c) Media (broadcasting + print) and (d) Social media?

• The Anti-Information Technology Crimes Law;
• The Personal Data Law;
• EG-CERT;
• Egypt's National Cybersecurity Strategy 2022–2026;
• The Telecommunications Regulatory Law;
• The decrees and regulations issued by the National Telecom Regulation Authority (NTRA);
• The Central Bank of Egypt's Banking Law (194/2020), as amended;
• The decrees and regulations issued by the National Payments Council; and
• The Law Regulating the Development and Use of Financial Technology in the Non-Banking Financial Activities (5/2022).

9.3 What other specific challenges or concerns do the relevant sectors present from a data security/cybersecurity perspective?

A fundamental aspect of technology is its everchanging nature; new approaches and techniques are continually emerging. Accordingly, this can raise several challenges and concerns for stakeholders operating in the TMT sphere, including:

• novel security threats to data and cybersecurity, for which stakeholders might be unprepared;
• issues of affordability, as not all stakeholders – especially start-ups – have the necessary resources to combat these emerging security threats;
• the continuous development of technology, which requires stakeholders to keep up to date with the changing legal environment in Egypt surrounding TMT; and
• the dependence of certain stakeholders on third parties for cloud storage or other data security services, which can create legal and security challenges that were unforeseen by those stakeholders.

10 Trends and predictions

10.1 How would you describe the current TMT industry landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

The TMT industry landscape in Egypt is particularly dynamic at the moment, as there has been a significant shift towards regulating modern technological developments and trends. This is particularly evident in the significant increase in legislation, as well as the establishment of specialised entities to regulate and further monitor TMT activities. Additionally, discussions are ongoing on the adoption of new laws pertaining to social media and other matters within the TMT sector.

11 Tips and traps

11.1 What are your top tips for TMT players seeking to operate in your jurisdiction and what potential sticking points would you highlight?

Despite the various legislative initiatives that have been taking place, neither the legislature nor the regulators can keep up with the relentless pace of technological development. Thus, it is very important that players developing new product and/or services stay in close contact with the relevant regulatory authorities in order to avoid any inadvertent legal implications, which could even be of a criminal nature.

Co-Authored by Alia Omran and Abdallah Shetta

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.