Page 531 - MOE ENGLISH PR REPORT - JULY 2024

7/15/24, 3:22 PM UAE Introduces New Competition Law to Curb 'Very Low' Pricing Tactics
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.

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