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Antitrust law, often referred to as competition law in international contexts including Abu Dhabi, serves the purpose of maintaining and promoting competition in the marketplace. In the United Arab Emirates (UAE), both federal and Emirate-specific legislation governs competition law. The UAE Federal Law No. 4 of 2012 on regulating competition (the "Competition Law") is the primary law at the federal level which prevents the abuse of a monopoly situation, restricts anticompetitive agreements/arrangements, and regulates economic concentration. It is essential to mention that the Abu Dhabi Global Market (ADGM), Abu Dhabi's international financial centre, has its own rules and regulations regarding antitrust behaviors embodied in the 'ADGM Competition Regulations 2020'.
In complex and multifaceted fields such as antitrust, obtaining legal support is often crucial for understanding nuances of the law, assessing potential risks, and ensuring compliance with the relevant regulations. You may need a lawyer if you're starting a business and want to ensure you adhere to competition laws, if you're accused of violating these laws, or if you believe that another organization's actions are limiting fair market competition. Furthermore, if you're considering a merger or acquisition, you'll want a lawyer to evaluate it under the competition laws.
The primary legislation, the UAE Competition Law, restricts anti-competitive practices such as dominant position abuse, anti-competitive agreements, and economic concentrations that may negatively affect competition. However, there are several exemptions to the law, especially in sectors such as oil & gas, pharmaceuticals, and utilities. The ADGM Competition Regulations 2020 governs antitrust matters within the ADGM, closely mirroring EU competition law concepts. It is worth mentioning that non-compliance with these laws could lead to severe consequences, including hefty fines.
Penalties for violating the UAE Competition Law can be severe, including fines ranging between AED 500,000 to AED 5 million. If the violation is repeated, penalties can be doubled, and the entity can be closed for up to six months.
Yes, the UAE Competition Law outlines a merger control regime, but there are thresholds and certain exemptions that apply.
Yes, the Competition Law does outline certain sector-specific exemptions in sectors such as electricity, water, oil & gas, pharmaceuticals, postal services including express courier, and sewage treatment.
No, the ADGM Competition Regulations 2020 apply to the conduct of businesses that takes place within the ADGM or that has an effect within the ADGM.
If you suspect a company is engaging in anti-competitive practices, consider consulting a lawyer experienced in antitrust issues.
Under UAE Competition Law, an establishment is considered as occupying a dominant position if it holds 40% or more of the relevant market.
Any agreement intended to, or results in, the prevention, restriction or evasion of competition, such as price-fixing, market division, or the uncompetitive restriction of production or development, is considered as anti-competitive
If a merger or acquisition may significantly affect competition, the Ministry of Economy has the power to take necessary measures, including blocking the deal.
If an economic concentration might result in the control of 40% or more of the relevant market, or lead to a dominant position, approval must be sought from the Ministry of Economy.
While the Competition Law applies broadly, it does contain exemptions for public utilities managed or operated by government entities.
For more information, visit the Ministry of Economy's website, and consult the UAE Competition Law and the ADGM Competition Regulations 2020 in full. Both documents provide comprehensive detail on antitrust law in Abu Dhabi, UAE.
If you need legal assistance in antitrust matters in Abu Dhabi, UAE, consider consulting with a legal professional versed in UAE Competition Law and relevant regulations. They can provide counsel, ensure that your business operations are compliant with the local laws, guide you through the approval process for mergers and acquisitions, or represent you if you're involved in a legal dispute on antitrust grounds.
