Bahrain

Basic Provisions

Legislative Decree No. 31/2018 (Commercial Competition)

Authority: Ministry of Industry and Commerce | Enforcement: partial

Overview

Bahrain enacted its competition law via Legislative Decree No. 31 of 2018, replacing an earlier 2007 statute. The law prohibits anti-competitive agreements, abuse of dominant position, and provides for control of economic concentrations. The Ministry of Industry and Commerce is the responsible authority, supported by a specialist committee. Enforcement remains at an early stage. The 2018 law strengthened the framework by introducing clearer definitions of dominance, expanding the range of prohibited practices, and increasing penalties. However, publicly reported enforcement actions are limited, and formal implementing regulations for merger control and leniency are still developing.

14-Topic Competition Coverage

Competition Authority

Fully Addressed

The Ministry of Industry and Commerce oversees competition enforcement, supported by a Competition Protection Committee.

Anti-Competitive Agreements (Horizontal)

Fully Addressed

Horizontal agreements that prevent, restrict, or distort competition are prohibited, including price-fixing and bid-rigging.

Anti-Competitive Agreements (Vertical)

Fully Addressed

Vertical agreements restricting competition are prohibited under the general anti-competitive agreements provision.

Abuse of Dominance

Fully Addressed

Abuse of a dominant position is prohibited, including imposing unfair prices, limiting production, and discriminatory treatment.

Merger Control

Partially Addressed

The 2018 law includes provisions for control of economic concentrations, but a formal mandatory notification system is not yet operational.

Leniency Programme

Not Addressed

No formal leniency programme has been established.

Settlement & Commitment

Not Addressed

No formal settlement or commitment procedure has been adopted.

Penalties & Sanctions

Fully Addressed

Fines of up to BHD 1 million. Imprisonment of up to five years for certain competition offences. Disqualification of directors is also possible.

Digital Markets Regulation

Not Addressed

No specific digital markets regulation.

Sector Regulators

Partially Addressed

The Telecommunications Regulatory Authority (TRA) exercises competition oversight in the telecoms sector.

Dawn Raids & Investigations

Partially Addressed

The authority may investigate complaints and gather evidence, but detailed dawn raid procedures are not published.

Private Enforcement

Partially Addressed

Affected parties may claim damages through civil proceedings, but there is no established private enforcement track record.

International Cooperation

Partially Addressed

Bahrain participates in GCC competition discussions. No specific bilateral cooperation agreements publicly disclosed.