Legislation Details
- Full Title: Federal Decree-Law Regarding Regulating Competition
- Law Type: Federal Decree-Law
- Law Number: [36] of 2023
- Issued Date: 28 Sep 2023
- Effective Date: 29 Dec 2023
- Official Gazette: No. 760
- Sector: Economy and Business
- Status: Active
- Number of Articles: 99
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree-Law regulates competition in the United Arab Emirates, with the aim of protecting and enhancing competition and combating monopolistic practices. It prohibits certain restrictive agreements, abuse of dominant position, and abuse of economic dependence, while also providing for exemptions and establishing a Competition Regulatory Committee to oversee enforcement. The law applies to all undertakings engaged in economic activities in the UAE, with some exclusions. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 1-4) The law is significant for businesses and individuals in the UAE, as it sets clear rules and penalties around anti-competitive practices. It aims to promote a competitive market environment, protect consumer interests, and support sustainable economic development in the country. Compliance with the law is crucial for undertakings operating in the UAE. (Federal Decree-Law Regarding Regulating Competition, 2023)
What is the scope and purpose of this law?
The purpose of this Federal Decree-Law is to protect and enhance competition and combat monopolistic practices in the UAE. It applies to all undertakings engaged in economic activities within the UAE, as well as the exploitation of intellectual property rights inside and outside the UAE, and economic activities practiced outside the UAE that affect competition in the UAE. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 3) The law aims to provide a stimulating environment for undertakings to enhance their effectiveness, competitiveness, and serve consumer interests, while also maintaining a competitive market governed by market mechanisms in line with the principle of economic freedom. It prohibits agreements, conduct, and acts that constitute an abuse of dominant position, and monitors all economic concentrations to avoid distorting, lessening, restricting, or preventing free competition. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 2)
What are the key definitions under this law?
The Federal Decree-Law provides the following key definitions:
- The State: The United Arab Emirates (UAE).
- The Ministry: The Ministry of Economy.
- The Minister: The Minister of Economy.
- Relevant Authority: The competent local authority.
- Sectoral Regulatory Agencies: The federal authorities empowered to regulate, monitor or supervise a certain economic sector in the UAE.
- Competition: Carrying out economic activities according to market mechanisms without affecting or restricting such mechanisms, which would cause harm to trade, development, and consumer interests.
- Relevant Market: A market consisting of relevant products and a relevant geographic area.
- Economic Activity: Every activity related to the production, distribution, supply of products and goods, or provision of services in the UAE.
- Undertaking: Any person engaged in an economic activity, its associated person, or any association of such persons.
- Agreements: Agreements, arrangements, consortia, or practices between undertakings, any cooperation among undertakings, or decisions made by associations of undertakings.
- Dominant Position: A position that an undertaking holds, making it capable of controlling or influencing the relevant market.
- Economic Concentration: Any act resulting in the complete or partial transfer of ownership or usufruct rights of an undertaking to another, empowering the undertaking or a group of undertakings to control another undertaking or group of undertakings.
- The Committee: The Competition Regulatory Committee established under this Decree-Law.
(Federal Decree-Law Regarding Regulating Competition, 2023, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this Federal Decree-Law include: 1. Prohibition of agreements between undertakings that distort, lessen, prevent or restrict competition, such as price-fixing, market allocation, and collusive tendering. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 5) 2. Prohibition of abuse of dominant position by undertakings, including imposing unfair prices or conditions, predatory pricing, and unjustified refusal to deal. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 6) 3. Prohibition of abuse of economic dependence, such as imposing unfair prices or conditions on economically dependent customers. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 7) 4. Prohibition of predatory pricing, where prices are set excessively lower than costs to drive out competitors or prevent their entry. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 8) 5. Requirement for undertakings to notify the Ministry of any agreements or practices they claim are necessary for promoting economic development and improving their performance and competitiveness. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 9)
What licensing, registration, or approval requirements exist?
The Federal Decree-Law does not specify any licensing, registration, or approval requirements for undertakings. The law focuses on regulating anti-competitive practices and economic concentrations, rather than establishing any permitting or approval processes.
What rights and protections does this law provide?
The key rights and protections provided under this Federal Decree-Law include: 1. The right of undertakings to claim exemptions for agreements or practices that are necessary for promoting economic development, improving performance and competitiveness, and bringing benefits to consumers, provided certain conditions are met. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 9) 2. The protection of consumer interests by prohibiting anti-competitive practices that could harm trade, development, and consumer interests. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 2) 3. The protection of the competitive market environment and the principle of economic freedom by prohibiting agreements, conduct, and acts that distort, lessen, restrict or prevent free competition. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 2)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the enforcement of this Federal Decree-Law are: 1. The Ministry of Economy, which is responsible for overseeing the implementation of the law and coordinating with relevant authorities and sectoral regulatory agencies. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 18) 2. The Competition Regulatory Committee, which is established under the law and is responsible for making recommendations to the Minister on exemptions, monitoring economic concentrations, and other enforcement-related matters. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 16-17) 3. Law enforcement officers, who are empowered to investigate violations and institute criminal actions. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 35)
What are the penalties for non-compliance?
The Federal Decree-Law specifies the following penalties for non-compliance: 1. Administrative penalties, which may include fines, suspension or revocation of licenses, and closure of establishments. The specific penalties and amounts are to be determined in the Executive Regulations. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 23) 2. Criminal penalties, which may include imprisonment and fines. The specific penalties are to be determined in the Executive Regulations. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 24)
What fees, charges, or financial provisions are specified?
The Federal Decree-Law does not specify any fees, charges, or other financial provisions. It states that the Executive Regulations of the law will determine any applicable fees. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 36)
What exemptions or exceptions apply?
The Federal Decree-Law provides the following exemptions and exceptions: 1. Agreements, practices or conduct related to a specific good or service that are regulated by a Sectoral Regulatory Agency, unless the agency requests the Ministry to handle the matter. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 4(1)) 2. Undertakings owned by the Federal Government, as determined by a Cabinet resolution. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 4(2)) 3. Undertakings owned by a government of an emirate, which carry out their activities in that emirate, as determined by a local government resolution. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 4(3)) 4. Agreements or practices that the relevant undertakings prove are necessary for promoting economic development, improving performance and competitiveness, and bringing benefits to consumers, subject to certain conditions. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 9)
How are disputes resolved under this law?
The Federal Decree-Law does not specify any dispute resolution mechanisms. It only states that decisions made by the Ministry or the Competition Regulatory Committee can be appealed in accordance with the law. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 34)
What are the key deadlines and time limits?
The Federal Decree-Law does not specify any deadlines or time limits, apart from stating that the law will come into effect 90 days after its publication in the Official Gazette. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 40)
How does this law interact with other UAE legislation?
The Federal Decree-Law interacts with the following other UAE legislation: 1. It repeals Federal Law No. (4) of 2012 Regulating Competition. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 39) 2. It is subject to the provisions of Federal Decree-Law No. (3) of 2022 Regulating Commercial Agencies, and any other replacement law. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 5(2)) 3. It references Federal Law No. (1) of 1972 on the Competences of Ministries and the Powers of Ministers, as amended, in the preamble. (Federal Decree-Law Regarding Regulating Competition, 2023) 4. It references Federal Law No. (15) of 2020 on Consumer Protection, as amended, in relation to exemptions for general price cuts and liquidation of commercial shops. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 8(2))
When did this law come into effect?
The Federal Decree-Law Regarding Regulating Competition will come into effect 90 days after its publication in the Official Gazette, which was on 29 September 2023. Therefore, the law will be effective as of 29 December 2023. (Federal Decree-Law Regarding Regulating Competition, 2023, Art. 40)
Source Documents
This article analyses Federal Decree-Law Regarding Regulating Competition for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.