UAE Introduces New Competition Law: Federal Decree-Law No. 36/2023

The UAE has taken a significant step forward in promoting fair competition and economic freedom with the introduction of Federal Decree-Law No. 36/2023. This new legislation defines competition as the act of conducting economic activities based on market mechanisms, while ensuring that these mechanisms do not harm trade, development, or consumer interests.

Key Highlights of the New Competition Law

The law aims to promote a market economy and economic activities in line with the principle of economic freedom. It ensures that economic concentration is monitored, prohibiting monopolistic practices.

Prohibited Practices and Consumer Protection

Companies are forbidden from offering or applying very low prices for production, transfer, and marketing with a monopolistic approach to drive other companies out of competition. This law is designed to ensure fair competition, protect consumer rights, and regulate mergers and acquisitions in the local market.

Regulations on Economic Concentration

Federal Decree-Law No. 36/2023 establishes the regulations for submitting applications for economic concentration, the documents required, and the examination mechanisms. The fines and penalties for companies violating the new competition law are under review and will be released once the Cabinet approves them.

Future Developments

Efforts are currently underway to develop a more agile and sustainable competitive system. This includes the launch of pioneering legislation, initiatives, and programs aimed at making the UAE a global hub for the new economy within the next decade.

This new law is a crucial step towards ensuring a fair and competitive business environment in the UAE, promoting economic freedom, and protecting consumer rights. Stay tuned for more updates on the fines and penalties once they are approved by the Cabinet.