Page 517 - MOE ENGLISH PR REPORT - JULY 2024
P. 517
The UAE is prohibiting companies from offering or applying very low prices for
production, transfer and marketing with a monopolistic approach to drive other
companies out of competition.
The new law defines competition as the act of conducting economic activities based on
market mechanisms, but not such mechanisms that harm trade, development and
consumer interests. This was aimed at ensuring fair competition and prohibition of
monopolistic approaches for all companies and also protecting consumers’ rights in the
country. The law will also regulate mergers and acquisitions (M&As) in the local market.
The ministry will monitor and communicate with local authorities for inspections to
ensure fair competitive practices in the country. The authority can also act in case of
receiving a complaint.
This was announced during a media briefing while revealing details of Federal Decree-
Law No. 36 of 2023 on competition regulation which promotes and protects competition,
combats monopolistic practices, counters harmful economic concentration of
consumers in the UAE.
The fines and penalties for the companies are under review and will be released once
the Cabinet approves.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, said 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…
“Ensuring consumer protection from anti-competitive practices in the context of
operationalisation of new market mechanisms, the promotion of economic efficiency,
marketing and R&D are also key goals,” he added.
Conditions
https://www.khaleejtimes.com/business/uae-announces-new-competition-law-prohibiting-firms-
from-offering-very-low-prices
