UAE’s New Law Prohibits Firms From Offering Low Prices (image-unsplash)
The United Arab Emirates has implemented a new law that restricts companies from offering or applying very low prices for production, transfer, and marketing with a monopolistic approach.
As per the new law, competition is defined as the act of conducting economic activities based on market mechanisms. This was brought into force to ensure fair competition prohibition monopolistic approaches for all companies and also protecting consumers’ rights in the country, reports Khaleej Times.
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The law will take into account of the annual sales of the enterprises concerned and not only the total share of such enterprises involved in the economic concentration process.
The new competitive law was announced during a media briefing while revealing details of Federal Decree-Law No.36 of 2023 on competition regulation which promotes and protects competition, combats monopolistic practices, and counters harmful economic concentration of consumers in the UAE.
Once the law is approved by the Cabinet, fines and penalties for the companies that are under review currently will be released.
The ministry will also monitor and communicate with local authorities for inspections to ensure fair competitive practices in the country. The authority can also act in case of receiving a complaint.
It also added that the ministry is open to accepting the companies’ views on the Application for Economic Concentration project and will also provide any data or information that would help study the request.
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Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, said the new law aims to combat monopolistic practices by ensuring a stimulating environment for enterprises, contributing to enhancing effectiveness, and competitiveness and protecting consumer interests.
