UAE introduces new competition law banning 'very low' pricing practices
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The United Arab Emirates (UAE) has enacted Federal Decree-Law No. 36 of 2023 to regulate competition and prevent monopolistic practices. This new legislation aims to ensure fair competition, protect consumer interests and foster an environment conducive to economic development.
The law defines competition as economic activities based on market mechanisms, excluding those that harm trade, development, and consumer interests. It explicitly prohibits companies from employing very low pricing strategies intended to drive competitors out of the market. Additionally, it regulates mergers and acquisitions to maintain competitive market conditions.
The Ministry of Economy will collaborate with local authorities to monitor and inspect market practices. They will also address complaints related to anti-competitive behaviour. Penalties and fines for violations are under review and will be finalized upon Cabinet approval.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasized the law's role in combating monopolistic practices, enhancing market competitiveness and protecting consumer rights.
“Ensuring consumer protection from anti-competitive practices in the context of operationalisation of new market mechanisms, the promotion of economic efficiency, marketing and R&D are also key goals,” he added.