Competition Law at United Arab Emirates
Here is a comprehensive overview of Competition Law in the United Arab Emirates (UAE):
🇦🇪 Competition Law in the United Arab Emirates
1. Legal Framework
The primary legislation is Federal Law No. 4 of 2012 on the Regulation of Competition (the UAE Competition Law).
The law was issued to promote and protect competition, combat anti-competitive practices, and preserve consumer welfare.
The law applies to most economic activities within the UAE, including free zones, unless exempted.
2. Regulatory Authority
The Ministry of Economy (MoE) is the key authority responsible for implementing and enforcing competition law in the UAE.
It oversees investigations, merger reviews, and enforcement actions under the law.
3. Key Provisions
a. Anti-competitive Agreements
The law prohibits agreements or practices that restrict, prevent, or distort competition.
Includes:
Price fixing
Market sharing
Bid rigging
Exclusive dealing
Exemptions are possible if agreements enhance economic efficiency and benefit consumers.
b. Abuse of Dominant Position
Firms holding a dominant market position must not exploit their power to harm competition.
Prohibited conduct includes:
Predatory pricing
Discriminatory pricing
Refusal to deal
Dominance is typically presumed when market share exceeds 40%.
c. Merger Control
Mergers and acquisitions that could lead to a dominant market position must be notified to the Ministry of Economy.
Transactions are subject to review and may be approved, rejected, or approved with conditions.
4. Exemptions
Certain sectors are exempt from the law, including:
Telecommunications (regulated by the TRA)
Financial services (regulated by the Central Bank)
Oil and gas
Utilities and transport
These sectors are usually regulated under sector-specific laws instead.
5. Penalties and Enforcement
Violations of the competition law can result in:
Fines ranging from AED 500,000 to AED 5 million (for anti-competitive agreements)
Higher fines for merger violations or abuse of dominance
Potential orders to cease the offending conduct
6. Recent Developments
The UAE is increasingly modernizing its competition regime to align with global best practices.
There is an ongoing push to diversify the economy and attract investment, leading to more active enforcement of fair competition.
Summary
| Element | Description |
|---|---|
| Main Law | Federal Law No. 4 of 2012 |
| Authority | Ministry of Economy |
| Key Focus | Cartels, abuse of dominance, merger control |
| Exempt Sectors | Telecom, financial services, oil & gas, transport |
| Penalties | Fines, conditions on mergers, conduct orders |
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