Page 559 - MOE ENGLISH PR REPORT - JULY 2024

7/15/24, 3:24 PM UAE Implements New Competition Law to Prevent Monopolistic Pricing
During a media briefing, Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of
Economy, emphasized the law’s objectives. “The new law aims to combat monopolistic
practices by ensuring a stimulating environment for enterprises, contributing to enhancing
effectiveness, competitiveness, and protecting consumer interests,” he said. Al Saleh added
that the law promotes economic freedom and efficiency, while monitoring economic

concentration to prevent anti-competitive practices.

The law defines economic concentration as any act resulting in the transfer of ownership or
control over an establishment, which could lead to a dominance of a small number of firms
in an industry. It outlines conditions for mergers and acquisitions, taking into account the
annual sales value and market share of the enterprises involved. To complete an economic
concentration process, two conditions must be met: the total annual sales value of the

establishments must exceed a threshold determined by the Cabinet, and their market share
must surpass a specified percentage of total transactions in the relevant market.

Companies involved in mergers or acquisitions must submit their applications for economic
concentration, including relevant documents and data, in accordance with the Executive
Regulation of the law. The Ministry of Economy is open to receiving feedback and

information from companies to aid in the evaluation of these applications, aligning with
global best practices in competition regulation.

The new law also assigns additional responsibilities to the Competition Regulation
Committee, which will propose policies for protecting competition and scrutinize issues
related to the law’s application. The committee will make recommendations to ensure the
law is effectively enforced.

Efforts are underway to develop a more agile and sustainable competitive system in the
UAE. The government plans to introduce more pioneering legislation, initiatives, and

programs to position the UAE as a global hub for the new economy over the next decade.

This comprehensive approach to competition regulation reflects the UAE’s commitment to

maintaining a fair and dynamic market, fostering innovation, and protecting consumer
interests in a rapidly evolving economic landscape.

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