UAE's New Competition Law : Strengthening Market Fairness and Economic Growth

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The United Arab Emirates (UAE) has enacted Federal Decree-Law No. (36) of 2023 Regulating Competition, which supersedes the previous Federal Law No. (4) of 2012. This new legislation aims to foster a competitive market environment, prevent monopolistic practices, and promote economic efficiency within the UAE.

Objectives of the Law

The primary objectives of Federal Decree-Law No. (36) of 2023 are:

1. Enhancing Economic Efficiency: By promoting competition, the law seeks to create a stimulating environment for businesses, thereby enhancing effectiveness and contributing to sustainable development in the UAE.

2. Maintaining Market Integrity: The law aims to uphold a market governed by fair competition principles, aligning with the UAE's commitment to economic freedom. It prohibits agreements and practices that abuse dominant market positions and monitors economic concentrations to prevent actions that could distort or restrict free competition.

Scope of Application

The provisions of this decree-law apply to:

• All Undertakings: Any entity engaged in economic activities within the UAE, including the exploitation of intellectual property rights both domestically and internationally, is subject to this law.

• Extrajurisdictional Activities: Economic activities conducted outside the UAE that have an impact on competition within the country also fall under the purview of this legislation.

Exclusions

Certain agreements, practices, or conducts are excluded from this law, particularly those related to specific goods or services regulated by other laws that assign competition oversight to sectoral regulatory agencies. Unless such an agency explicitly requests the Ministry of Economy to undertake competition regulation, these instances remain outside the scope of Federal Decree-Law No. (36) of 2023.

Conclusion

Federal Decree-Law No. (36) of 2023 represents a significant step in the UAE's efforts to regulate competition effectively. By defining clear objectives and a comprehensive scope, the law aims to create a fair and dynamic market environment that benefits consumers and businesses alike.