The Ministry of Economy organized a media briefing to overview the Federal Decree-Law No. 36 of 2023 on competitors regulation, which goals to advertise and shield competitors within the nation, fight monopolistic practices, counter dangerous financial focus of customers, assist the expansion of financial sectors and enhance productiveness, thus enhancing the nation’s attractiveness to home and international investments.
H.E. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, stated: “The law marks a new milestone in the UAE’s efforts to develop a leading legislative system for competition in accordance with global best practices. It provides a comprehensive legal framework to enhance the role of competition in the growth of the national economy and the business environment in the country.”
He added: “The preparation phase of this legislation saw concerted national efforts. The Ministry of Economy followed a proactive, flexible and forward-looking approach in its development in cooperation and coordination with 14 federal and local government entities in the country, in addition to drawing on international reports and studies specialized in competition. This was to ensure the development of a modern, comprehensive legislation that supports the country’s efforts to introduce a new framework for competition and create an enabling environment for enhanced competitiveness. Ensuring consumer protection from anti-competitive practices in the context of operationalization of new market mechanisms, the promotion of economic efficiency, marketing and R&D are also key goals.”
He continued: “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.”
The Ministry reviewed the highlights of the brand new Competition Regulation Act intimately and its position in selling competitors and offering larger shopper freedom whereas buying commodities and inspiring buyers and corporations in varied financial actions to have interaction in truthful competitors. The new laws
- Establishes a brand new dynamic in regulating competitors within the nation as a catalyst for funding and doing enterprise. The legislation additionally contributes to the regulation of the markets – each bodily and digital – in keeping with the expansion within the quantity of commerce by way of fashionable technical means within the nation. It is aligned with the size of the related worldwide markets, particularly since digital markets represent a big space of competitors that requires a transparent regulatory framework that ensures the pursuits of corporations and customers.
- Introduces controls to stop the abuse of the financial dependency state of affairs in order that any enterprise is prohibited from conducting unjustified actions or actions resulting in the abuse of the financial dependency state of affairs.
- Prohibits the provide or utility of very low costs for manufacturing, switch and advertising and marketing when the aim or consequence of this follow is to exclude an enterprise or considered one of its merchandise from the market involved.
- Covers all financial focus processes, circumstances and management mechanisms, in addition to introduces flexibility in established standards within the verification of the financial focus course of, primarily based on the annual gross sales worth of the enterprises involved and never solely the overall share of such enterprises concerned within the financial focus course of.
- Enables related events to precise their views on the Application for Economic Concentration mission, and to supply any information or info that will assist research the request, in keeping with world finest practices within the subject of competitors.
- Supports the mixing between the federal and native authorities in imposing competitors legislation by way of the empowerment of native authorities by enhancing their roles for the primary time in addressing anti-competitive practices and functions for financial focus throughout the nation.
- Promotes session and collaboration amongst varied federal, native, and sectoral regulatory entities throughout completely different points ruled by the legislation, actively imposing competitors coverage on the nationwide stage.
Furthermore, the briefing session targeted on the powers and duties assigned to the Ministry of Economy underneath the brand new Law. These embrace the implementation of the competitors insurance policies in collaboration with federal and native entities within the nation and coordinating with related authorities to fight any type of actions or practices in breach of the provisions of the legislation. Other duties embrace the preparation of a registry of notices and complaints, info assortment, and investigation of anti-competitive practices primarily based on complaints or by itself initiative, thus addressing such practices in cooperation with related authorities and offering suggestions to the Minister of Economy on selections to be taken on this regard.
The Ministry reiterated its unwavering dedication to working alongside its companions from each the private and non-private sectors to attain these objectives. Its major goal is to foster a aggressive market within the UAE that’s constructed upon ideas of equity, equality, and effectivity. These embrace the growth of actions throughout varied financial sectors to be able to enhance the general enterprise atmosphere inside the nation. Moreover, the Ministry goals to boost consciousness on the importance of cultivating a tradition of competitors amongst customers and personal sector, guaranteeing the sustainability and development of the nationwide financial system for the following 50 years. Furthermore, it highlighted that the brand new Law will improve the UAE’s place in quite a few world financial
competitiveness indicators. National efforts are at present underway to develop a extra agile and sustainable aggressive system, together with the launch of extra pioneering laws, initiatives, and applications, to be carried out with the final word goal of building the UAE a world hub for the brand new financial system inside the subsequent decade, in keeping with the targets outlined within the ‘We the UAE 2031’ imaginative and prescient.
Competition and Economic Concentration
The new legislation defines competitors because the act of conducting financial actions primarily based on market mechanisms with out affecting or limiting such mechanisms, which might hurt commerce, growth, and shopper pursuits. The legislation clarifies that financial focus is any act leading to full or partial switch (merger or acquisition) of the possession or usufruct rights of property, rights, fairness, shares or obligations of an institution to a different, empowering the institution or a bunch of institutions to immediately or not directly management one other institution or group of institutions.
The legislation specifies a set of circumstances to finish financial focus operations that will have an effect on the extent of competitors within the related market, and specifically create or strengthen a dominant place. The related institutions are required to submit an utility on the shape designated for this goal to the Ministry of Economy at the very least 90 days previous to the completion thereof and shall connect the required paperwork.
Pursuant to the brand new legislation, there are two circumstances that have to be glad to be able to efficiently full the method of financial focus. The first situation signifies that the overall worth of annual gross sales of such institutions within the related market, for the final fiscal yr, shall exceed the quantity decided by the Cabinet, upon the Minister’s proposal. The second situation states that the overall share of such institutions shall exceed the proportion of the overall transactions within the related market over the past fiscal yr, as decided by the Cabinet. The Executive Regulation of this legislation establishes the controls of submitting the appliance for financial focus, the paperwork to be hooked up, and its examination mechanisms.
Responsibilities of Competition Regulation Committee
The legislation assigns new duties to the Competition Regulation Committee as properly. These embrace proposing the final coverage for safeguarding competitors within the nation and presenting it to the Minister to take crucial actions. The Committee can also be accountable for scrutinizing points associated to the appliance of the provisions of this legislation and making suggestions thereon to the Minister. Additionally, it should suggest laws and measures for safeguarding competitors within the UAE.