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mechanisms, which could harm trade, development, and consumer interests.

The law clarifies that economic concentration is any act resulting in complete

or partial transfer (merger or acquisition) of the ownership or usufruct rights of
property, rights, equity, shares or obligations of an establishment to another,
empowering the establishment or a group of establishments to directly or
indirectly control another establishment or group of establishments.

The law specifies a set of conditions to complete economic concentration
operations that would affect the level of competition in the relevant market,
and in particular create or strengthen a dominant position.

The relevant establishments are required to submit an application on the form
designated for this purpose to the Ministry of Economy at least 90 days prior
to the completion thereof and shall attach the required documents.

Pursuant to the new law, there are two conditions that must be satisfied in

order to successfully complete the process of economic concentration.

The first condition indicates that the total value of annual sales of such

establishments in the relevant market, for the last fiscal year, shall exceed the
amount determined by the Cabinet, upon the Minister's proposal. The second
condition states that the total share of such establishments shall exceed the
percentage of the total transactions in the relevant market during the last fiscal
year, as determined by the Cabinet.

The Executive Regulation of this law establishes the controls of submitting the
application for economic concentration, the documents to be attached, and its
examination mechanisms.

The law assigns new responsibilities to the Competition Regulation
Committee as well. These include proposing the general policy for protecting
competition in the country and presenting it to the Minister to take necessary
actions.

The Committee is also responsible for scrutinising issues related to the

https://en.aletihad.ae/news/uae/4499806/ministry-of-economy-reviews-new-competition-
regulation-law