Page 553 - MOE ENGLISH PR REPORT - JULY 2024

7/15/24, 3:24 PM UAE Announces New Competition Law Prohibiting Firms From Offering ‘Very Low’ Prices
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.

The new law clarifies that economic concentration (which means the dominance of a small number
of firms within a particular industry) 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 takes into consideration the annual sales value of the enterprises concerned and not only
the total share of such enterprises involved in the economic concentration process.

Two conditions must be satisfied 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 for
submitting the application for economic concentration, the documents to be attached, and its
examination mechanisms.

The ministry said that companies can submit their views on the Application for Economic

Concentration project and also provide any data or information that would help study the request,
in line with global best practices in the field of competition.

The ministry elaborated that efforts are currently underway to develop a more agile and sustainable
competitive system, including the launch of more pioneering legislation, initiatives, and programmes

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