Anti-Trust Law in Dubai
Anti-Trust Law in DubaiUpdated on Tuesday 20th February 2018
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The Anti-Trust Law is known as the Competition Law in the UAE which is applicable for all types of companies with establishments and operations in this territory, no matter if they are created with foreign capital or not. With the structure and the provisions of this act, authorities in Dubai control the stimulating business environment and the competitive market which must agree with the economic freedom standards. Having a solid awareness of the Anti-Trust Law will help the entrepreneurs know the requirements of the market and the interest of consumers. Our lawyers in Dubai can offer legal advice in this sense and for foreigners who want to set up companies in Dubai.
The structure of Anti-Trust Law
The Competition Law entered into force in 2013 in the UAE and since then it regulates the proper way of doing business in this state. The same legislative framework mentions the penalties for companies which adopted the abuse of dominant position on the market. The following chapters are part of the Competition Law in Dubai and are available for all establishments or companies dealing with the supply of goods and services in Dubai:
• anti-competitive practices;
• restrictive agreements;
• the abuse of dominant position;
• the economic concentration;
• the responsibilities of the Ministry of Economy;
• Competition Regulation Committee;
According to this law, it is illegal to sign restrictive agreements which stipulate prices and costs for the buying or selling of products which divide the market based on a particular geographic location. Business persons with firms in Dubai must understand that it is forbidden for "dominant" companies in a significant market to benefit from this position to break, diminish or ban competition, by commencing practices such as price fixing, as an example. The legal aspects and the penalties imposed by this significant law can be explained by our Dubai attorneys.
Exemptions mentioned by the Anti-Trust Law in Dubai
SMEs (small and medium enterprises) in Dubai with operations in special sectors like financial services, oil and gas, electricity and water, sanitation, pharmaceuticals, and telecommunication are exempt from the provisions of the Anti-Trust Law. The same is available for state-owned companies, with at least 50% ownership by the government.
If you would like to know more about the Anti-Trust Law, please feel free to contact our law firm in Dubai at any time.