Page 556 - MOE ENGLISH PR REPORT - JULY 2024

7/15/24, 3:24 PM UAE announces new competition law prohibiting firms from offering ‘very low’ prices - Informal Newz - Gulf
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
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,

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