The UAE has introduced a new competition law that prohibits establishments from offering “very low prices” for their products and services.
The new Competition Regulation Act was launched by the Ministry of Economy after the review of Federal Decree-Law No. 36 of 2023 in a media briefing, according to WAM, which aims to combat monopolistic practices and ensure consumer protection.
“The new law aims to combat monopolistic practices by ensuring a stimulating environment for enterprises, contributing to enhancing effectiveness, competitiveness and protecting consumer interests,” Abdullah Ahmed Al Saleh, undersecretary of the Ministry of Economy, said.
“It also promotes the market economy and economic activities in line with the principle of economic freedom and ensures that economic concentration is monitored. Its articles address all conditions that may undermine, limit, prevent or restrict competition,” he added.
The new law would allow customers to have freedom in purchasing commodities, as well as promote fair competition among companies and investors.
“Ensuring consumer protection from anti-competitive practices in the context of operationalisation of new market mechanisms, the promotion of economic efficiency, marketing and R&D are also key goals,” the undersecretary said.
Competition, as defined by the law, is “carrying out economic activities according to the market mechanisms
without affecting or restricting such mechanisms, which would cause harms to trade, development and consumer’s interest.”
The new law introduces measures to prevent the abuse of economic dependence and prohibits establishments to offer commodities in very low prices for the purpose of hindering other competitors in entering the market.
It also regulates the market, both physical and virtual, with a regulatory framework aligned with international standards while ensuring the interests of companies and consumers.
The Ministry of Economy will monitor the implementation of law with the federal and local entities, including any activity that breaches the law provisions.
