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7/16/24, 3:55 PM Ministry Of Economy Reviews New Competition Regulation Law And Its Role In Developing Regulatory & Legislative Frameworks T…
Ministry Of Economy Reviews New Competition Regulation

Law And Its Role In Developing Regulatory & Legislative

Frameworks To Promote Competition In The Country
(13 July 2024)
New law to combat monopolistic practices by ensuring a stimulating environment for enterprises
The Ministry of Economy organized a media briefing to review the Federal Decree-Law No. 36 of 2023 on competition regulation, which
aims to promote and protect competition in the country, combat monopolistic practices, counter harmful economic concentration of
consumers, support the growth of economic sectors and boost productivity, thus enhancing the country's attractiveness to domestic and
foreign investments.
H.E. Abdullah Ahmed AlSaleh, Undersecretary of the Ministry of Economy, said: "The law marks a new milestone in the UAE’s efforts to
develop a leading legislative system for competition in accordance with global best practices. It provides a comprehensive legal
framework to enhance the role of competition in the growth of the national economy and the business environment in the country."
He added: "Thepreparation phase of this legislation saw concerted national efforts. The Ministry of Economy followed a proactive,
flexible and forward-looking approach in its development in cooperation and coordination with 14 federal and local government entities in
the country, in addition to drawing on international reports and studies specialized in competition. This was to ensure the development of
a modern, comprehensive legislation that supports the country's efforts to introduce a new framework for competition and create an
enabling environment for enhanced competitiveness. Ensuring consumer protection from anti-competitive practices in the context of
operationalization of new market mechanisms, the promotion of economic efficiency, marketing and R&D are also key goals.”
He continued: "The new law aims to combat monopolistic practices by ensuring a stimulating environment for enterprises, contributing to
enhancing effectiveness, competitiveness and protecting consumer interests. It also promotes the market economy and economic
activities in line with the principle of economic freedom and ensures that economic concentration is monitored. Its articles address all
conditions that may undermine, limit, prevent or restrict competition."

The Ministry reviewed the highlights of the new Competition Regulation Act in detail and its role in promoting competition and providing
greater consumer freedom while purchasing commodities and encouraging investors and companies in various economic activities to
engage in fair competition. The new legislation

-Establishes a new dynamic in regulating competition in the country as a catalyst for investment and doing business. The law also
contributes to the regulation of the markets– both physical and virtual - in line with the growth in the volume of trade through modern
technical means in the country. It is aligned with the dimensions of the relevant international markets, especially since digital markets
constitute a significant area of competition that requires a clear regulatory framework that ensures the interests of companies and
consumers.
-Introduces controls to prevent the abuse of the economic dependency situation so that any enterprise is prohibited from conducting
unjustified actions or actions leading to the abuse of the economic dependency situation.
-Prohibits the offer or application of very low prices for production, transfer and marketing when the purpose or consequence of this
practice is to exclude an enterprise or one of its products from the market concerned.
-Covers all economic concentration processes, conditions and control mechanisms, as well as introduces flexibility in established criteria
in the verification of the economic concentration process, based on the annual sales value of the enterprises concerned and not only the
total share of such enterprises involved in the economic concentration process.

-Enables relevant parties to express their views on the Application for Economic Concentration project, and to provide any data or
information that would help study the request, in line with global best practices in the field of competition.

-Supports the integration between the federal and local government in enforcing competition law through the empowerment of local
authorities by enhancingtheir roles for the first time in addressing anti-competitive practices and applications for economic concentration
across the country.

-Promotes consultation and collaboration among various federal, local, and sectoral regulatory entities across different issues governed
by the law, actively enforcing competition policy at the national level.

Furthermore, the briefing session focused on the powers and responsibilities assigned to the Ministry of Economy under the new Law.
These include the implementation of the competition policies in collaboration with federal and local entities in the country and
coordinating with relevant authorities to combat any form of activities or practices in breach of the provisions of the law. Other
responsibilities include the preparation of a registry of notices and complaints, information collection, and investigation of anti-
competitive practices based on complaints or on its own initiative, thus addressing such practices in cooperation with relevant authorities
and providing recommendations to the Minister of Economy on decisions to be taken in this regard.
The Ministryreiterated its unwavering commitment to working alongside its partners from both the public and private sectors to achieve
these goals. Its primary objective is to foster a competitive market in the UAE that is built upon principles of fairness, equality, and
efficiency. These include the expansion of activities across various economic sectors in order to improve the overall business
environment within the country. Moreover, the Ministry aims to raise awareness on the significance of cultivating a culture of competition
among consumers and private sector, ensuring the sustainability and growth of the national economy for the next 50 years. Furthermore,
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