UAE
Developing FrameworkFederal Law No. 36/2023 on Commercial Competition
Authority: Ministry of Economy | Enforcement: Active
Overview
The UAE replaced its earlier 2012 competition law with Federal Law No. 36 of 2023, which substantially modernised the competition framework. The new law broadens the scope of prohibited anti-competitive conduct, introduces a formal merger control regime, and strengthens investigative powers of the Ministry of Economy. Enforcement is developing but gaining momentum, particularly in sectors such as telecommunications, aviation, and retail. The UAE also maintains separate competition frameworks within its financial free zones (DIFC and ADGM), which apply their own competition rules to entities operating within those zones.
14-Topic Competition Coverage
Competition Authority
Fully AddressedThe Ministry of Economy is the primary competition authority under the 2023 law, supported by a Competition Regulation Committee.
Anti-Competitive Agreements (Horizontal)
Fully AddressedHorizontal agreements that restrict, prevent, or distort competition are prohibited, including price-fixing, market allocation, and bid-rigging.
Anti-Competitive Agreements (Vertical)
Fully AddressedVertical agreements such as resale price maintenance and exclusive dealing are prohibited where they appreciably restrict competition.
Abuse of Dominance
Fully AddressedAbuse of a dominant position is prohibited, covering exploitative and exclusionary conduct including predatory pricing and tying.
Merger Control
Fully AddressedThe 2023 law introduced mandatory pre-merger notification for transactions meeting prescribed turnover thresholds.
Leniency Programme
Partially AddressedThe 2023 law provides for leniency but detailed implementing regulations and guidelines are still being developed.
Settlement & Commitment
Partially AddressedThe Ministry may accept commitments to resolve competition concerns, though formal settlement procedures are not yet fully codified.
Penalties & Sanctions
Fully AddressedFines of up to 10% of annual revenue for the relevant product. The 2023 law significantly increased penalty levels from the prior regime.
Digital Markets Regulation
Not AddressedNo specific digital markets regulation. General competition rules apply to digital platforms.
Sector Regulators
Fully AddressedThe Telecommunications and Digital Government Regulatory Authority (TDRA) and General Civil Aviation Authority exercise concurrent competition oversight in their sectors.
Dawn Raids & Investigations
Fully AddressedThe Ministry has enhanced investigation powers under the 2023 law, including the ability to conduct on-site inspections and seize evidence.
Private Enforcement
Partially AddressedInjured parties may seek damages through the courts, but private competition litigation remains uncommon.
International Cooperation
Partially AddressedThe Ministry cooperates with regional and international competition bodies on an ad hoc basis. No formal cooperation agreements publicly disclosed.
Recent Enforcement Trends
Partially AddressedEnforcement is expected to accelerate under the 2023 law. Previous actions primarily targeted distribution and agency agreement violations.
Coverage Summary
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