“Economia” reviews the new law that regulates competition

“Economia” reviews the new law that regulates competition

Abdullah Al Saleh: a new station for the development of the legislative system

Dubai: “The Gulf”

The Ministry of Economy reviewed the Federal Law of 2023 (36) on the regulation of competition, which aims to improve and protect competition in the country, combat monopolistic practices, combat economic blocks harmful to the consumer, and encourage the growth of economic sectors. and increase productivity, and increase the country’s attractiveness for local and foreign investment.

Abdullah Ahmed Al Saleh, Deputy Secretary of the Ministry of Economy, said at a media briefing in Dubai: “This law represents a new milestone in the state’s efforts to develop a pioneering competition law system in line with international best practices. An integrated legal framework, the role of competition to increase at this stage in the growth of the national economy and the business environment.

He added: “The preparation phases of the law were a joint national effort, as the Ministry of Economy worked to develop a proactive and flexible approach that anticipates future trends, in cooperation and coordination with the country’s 14 federal and local government agencies. In addition to relying on international reports and studies specialized in the field of competition, ensuring the issuance of legislation that meets the State’s goals, developing a new work system, creating an environment suitable for increasing competitiveness, and protecting the consumer from anti-competitive practices to activate new market mechanisms, improving economic efficiency, marketing, research and development”.

  • New dynamics

Al Saleh continued: “The new law aims to combat monopolistic practices, providing a stimulating environment that helps establishments improve efficiency and competitiveness and protects the interests of the consumer. The principle of economic freedom, and guarantees the continuation of economic concentration processes, hindering competition in its articles, because anything that can limit, prevent or restrict is done.

One of the salient features of the law is the creation of a new dynamic for the regulation of competition in the country, as an incentive for investment and doing business consistent with increasing the volume of trade through modern technological resources in the country, and compatible with the dimensions of the relevant international market. Mainly because digital markets are a wide area for competition, which requires a clear regulatory framework that guarantees the interests of companies. and consumers, and the establishment of controls that prevent the abuse of the position of economic dependence, and thus it is forbidden for any establishment, without any justification, to carry out actions or actions that lead to the abuse of the position of economic dependence. . It is also prohibited to offer or apply very low prices for production, transformation and marketing costs when the purpose or result of such practice is to exclude an establishment or any of its products from the relevant market.

It includes everything related to the processes of economic concentration, their conditions and monitoring mechanisms, in addition to establishing flexibility in the rules used to verify the process of economic concentration, so that it is based on the value of the annual sales of the establishments concerned and not only. the total share of those establishments related to the process of economic concentration.

The law included the opportunity for interested parties to comment on the draft request for economic concentration, and to provide any data and information that would help to analyze the request, in accordance with international best practices in the field of competition.

And promoting integration between federal and local governments in the field of competition law enforcement, giving the competent local authorities, for the first time, a key role in examining issues related to anti-competitive practices and requests for economic concentration at each level. emirate

And to increase consultation and cooperation between various federal and local authorities and sectoral regulatory bodies on various matters regulated by law, which will have an effective role in enforcing competition policy as required at the state level.

  • Global competitiveness

The law improves the country’s position in many indicators of global economic competitiveness, and the national effort continues to develop the competition system, making it more flexible and sustainable and supports more pioneering legislation, initiatives and programs to make the UAE a global center. the new economy for the next decade, in line with the goals of the “We are Emirates 2031” vision.

The new law defined competition; This means practicing economic activities according to market mechanisms, without the influence or limitations of these mechanisms that would cause adverse effects on trade, development and consumer interests. He explained it as follows: Economic concentration is the ownership, rights, shares, shares or obligations of an establishment, the ownership, rights, shares, shares or obligations of an establishment or the full or partial transfer from one establishment to another establishment. (merger or acquisition) is any act that affects it. set of establishments to gain greater control, directly or indirectly, in another establishment or set of establishments.