UAE's New Competition Law Targets Monopolistic Practices to Support Businesses

The UAE's new competition regulation, announced by the Ministry of Economy, aims to enhance and safeguard competition, prevent monopolies, and combat harmful economic concentration.

At a media briefing, the Ministry highlighted the federal law designed to support economic growth and productivity, attracting both domestic and foreign investments. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasized that this law establishes a comprehensive legal framework to boost competition and improve the business environment.

The law was developed through collaborative efforts involving 14 government entities and international competition studies. Key goals include protecting consumers from anti-competitive practices, promoting economic efficiency, and fostering a competitive business environment.

Key Highlights:

• Regulates competition to boost investment and business operations, especially in digital markets.
• Prevents abuse of economic dependency and bans excessively low pricing to eliminate competitors.
• Covers all economic concentration processes with flexible criteria based on annual sales.
• Encourages input from relevant parties on economic concentration applications.
• Enhances federal and local government collaboration in enforcing competition laws.
• Promotes consultation among regulatory entities to enforce competition policy.

Ministry of Economy Responsibilities: The Ministry will implement competition policies, investigate anti-competitive practices, and maintain a registry of complaints. It aims to foster a fair and efficient market, improve the business environment, and raise awareness about the importance of competition.

The new law defines competition as market-based economic activities and economic concentration as the transfer of ownership or control impacting competition. Establishments must submit applications for economic concentration to the Ministry at least 90 days before completion.

The Competition Regulation Committee will propose competition protection policies, scrutinize legal provisions, and recommend measures to the Minister.

In summary, the UAE's new competition regulation fosters a competitive market, protects consumer interests, and enhances the business environment.