During a recent media briefing, the UAE introduced Federal Decree-Law No. 36 of 2023, focusing on enhancing fair competition and safeguarding consumer interests. The law prohibits companies from using monopolistic tactics, such as driving competitors out with excessively low prices. It defines competition as economic activities based on market mechanisms that promote trade, development, and consumer welfare.
Key Aspects of the Law
The law emphasizes:
- Fair Competition: It prohibits monopolizing markets through predatory pricing or other anti-competitive behaviors.
- Mergers and Acquisitions (M&As): The law introduces stringent regulations to oversee mergers and acquisitions, preventing harmful economic concentration.
- Consumer Protection: Measures are in place to safeguard consumer interests against unfair practices, thereby promoting economic efficiency and innovation.
Monitoring and Enforcement
The Ministry of Economy will oversee compliance through regular inspections and collaboration with local authorities. Companies found violating the law will face fines and penalties, subject to Cabinet approval.
Future Outlook
The UAE aims to create a competitive business environment conducive to enterprise growth and economic freedom. The implementation of this law is part of broader efforts to establish the UAE as a global leader in the new economy over the coming decade.
Conclusion
Federal Decree-Law No. 36 of 2023 represents a significant step towards ensuring fair competition, combating monopolistic practices, and protecting consumer rights in the UAE market. By regulating economic concentration and promoting market efficiency, the law aims to enhance competitiveness and stimulate economic development in the region.