Competition Law at Iraq
Iraq's competition law framework is primarily governed by Law No. 14 of 2010, known as the Competition and Antitrust Law. This legislation aims to regulate competition and prevent monopolistic practices within the country.(
📜 Legal Framework
Law No. 14 of 2010: This law applies to all production, trade activities, and services provided by natural or legal entities within Iraq. It also extends to economic activities outside the country if their implications affect Iraq. The law prohibits various anti-competitive practices, including market division, price-fixing, and collusion.
Council for Competition and Antimonopoly Affairs (CAC): Article 4 of the law mandates the establishment of the CAC, an independent authority linked to the Cabinet. The CAC is responsible for investigating and collecting information on activities that breach competition regulations. However, as of now, the CAC has not been established, and the law remains unenforced .
🚫 Prohibited Practices
The law outlines several prohibited activities to ensure fair competition:
Market Division: Engaging in activities or agreements that divide markets geographically, by sales volume, or by client type.
Obstructing Market Entry: Actions that prevent commercial entities from entering the market or eliminate them through unfair practices like predatory pricing.
Bid Rigging: Conspiring in tenders to manipulate outcomes, except for joint offers where both parties are aware from the beginning and do not breach competition regulations.
Discriminatory Practices: Biasing against clients regarding service fees or conditions
Exclusive Dealing: Compelling clients to abstain from dealing with competitors.
Refusal to Deal: Unjustifiably rejecting to deal with a client under usual commercial conditions
⚖️ Penalties
Violations of the competition law can result in:
Imprisonment: A term of not less than one year and not more than three years.
Fines: An amount not less than one million Iraqi dinars and not more than three million dinars.
Compensation: Parties harmed by the violation are entitled to claim compensation before competent courts
🔄 Merger Control
Currently, Iraq does not have a specific merger control regime. Mergers and acquisitions are not subject to notification requirements. The process involves the signing of a resolution and a sales and purchase agreement, with the merger announcement published in a daily newspaper
🌐 Recent Developments
In February 2025, Iraq's Competition and Antitrust Council (CAC) signed a Memorandum of Understanding (MoU) with the Saudi General Authority for Competition (GAC). This MoU aims to promote cooperation in competition law matters between the two countries, including the exchange of information and experts. While this marks a significant step, Iraq's competition law remains largely unenforced due to the absence of a functioning regulatory authority .(Mondaq)
📌 Conclusion
Iraq's competition law framework, established in 2010, sets forth provisions to regulate market practices and prevent monopolistic behaviors. However, the lack of an operational regulatory authority has hindered its enforcement. The recent MoU with Saudi Arabia indicates a potential shift towards more active competition law enforcement in the future.
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