The UAE has enacted a new law aimed at promoting fair competition and preventing monopolistic practices.
Federal Decree-Law No. 36 of 2023 was announced during a media briefing, detailing measures to ensure economic activities are conducted based on market mechanisms without harming trade, development, or consumer interests.
The Ministry of Economy will work closely with local authorities to monitor and inspect companies, ensuring adherence to fair competitive practices. They will also respond to complaints regarding anti-competitive behaviors.
Under the new law, companies are prohibited from offering or applying very low prices for production, transfer, and marketing to drive competitors out of the market. The law also regulates mergers and acquisitions (M&As), defining economic concentration as the dominance of a few firms within an industry. It sets conditions for economic concentration based on annual sales values and market share percentages, which will be determined by the Cabinet.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasized the law’s objectives to combat monopolistic practices and promote a stimulating environment for enterprises.
"It also promotes the market economy and economic activities in line with the principle of economic freedom and ensures that economic concentration is monitored,"
he said. Al Saleh highlighted that the law aims to enhance competitiveness, protect consumer interests, and promote economic efficiency, marketing, and research and development (R&D).
The ministry has invited companies to submit their views on the Application for Economic Concentration project and provide data to help study requests in line with global best practices. Efforts are underway to develop a more agile and sustainable competitive system, positioning the UAE as a global hub for the new economy over the next decade.
Penalties for violating the new competition law are under review and will be released upon Cabinet approval. The law also assigns new responsibilities to the Competition Regulation Committee, including proposing general policies for protecting competition and making recommendations on the application of the law's provisions.
News Source: Khaleej Times
