UAE's Competition Regulation: A Comprehensive Analysis Of Federal Law No. 36/2023

• Published date: 19 March 2024
• Subject Matter: ntitrust/Competition Law, Antitrust, EU Competition
• Law Firm: Awatif Mohammad Shoqi Advocates & Legal Consultancy
• Author: Dr. Hassan Elhais

UAE's Competition Regulation: A Comprehensive Analysis of Federal Law No. 36/2023

Introduction:

In a significant step, Federal Decree-Law No. 36/2023 has assumed control, replacing the previous competition regulation law (Federal Law No. 4/2012) in the UAE. This new legislation represents a remarkable development, focusing on competition practices and countering commercial monopolies.

The law aims to encourage fairness, competitiveness, and consumer protection through provisions, controls, and penalties designed to restrict anti-competitive behaviours and establish regulatory frameworks.

Key Definition within Federal Law No. 36/2023: According to Article 1 of the Federal Decree-Law No. 36/2023 describe the key definitions

• Competition: Engaging in economic activities within market mechanisms without adverse influence or restrictions detrimental to trade, development, or consumer interests.
• The Relevant Market: Encompassing interchangeable products or services meeting specific consumer needs based on price, characteristics, and uses, within a specific geographical location.
• Establishment: Any entity involved in Economic Activity, regardless of legal form, including main offices branches, or associated individuals or groups.
• Agreements: Any cooperation, written or verbal, explicit or implicit, between two or more Establishments.
• Dominant Position: An Establishment with the capability to control and influence activities within a Relevant Market.
• Economic Concentration: Actions resulting in the transfer of ownership or usufruct rights, granting control over another Establishment or a group.

Regulation of Competition (Article 2): The objective is to create a competitive business environment, prevent monopolistic practices, and enhance effectiveness and consumer welfare for Establishments.

• Emphasis on economic freedom, prohibiting anti-competitive agreements, and preventing abuse of dominant positions.
• Close monitoring of Economic Concentration processes.
• Applicability to all Establishments engaged in Economic Activities within or outside the UAE, including intellectual property rights

Regulating Fair Competition (Articles 6-8):

• Comprehensive framework targeting abuse of dominant positions unfair pricing conditions, discrimination, and excessive control over production.
• Addresses exploitation of economic dependency, promoting fair dealings.
• Proactive stands against offering goods or services at unreasonably low prices to prevent exclusionary practices and...