Competition Law at Iran
Iran's competition law framework has undergone significant evolution, particularly with the enactment of Federal Decree-Law No. 36 of 2023, which supersedes the earlier Law on Protection of Competition and the Prevention of Monopolistic Practices (2008). This Decree-Law introduces comprehensive regulations aimed at fostering fair competition and curbing monopolistic behaviors in Iran's economy.
📜 Key Features of Federal Decree-Law No. 36 of 2023
1. Prohibition of Anti-Competitive Practices
Articles 7 and 8 specifically address:
Abuse of Economic Dependency: Prohibits establishments from exploiting the economic dependency of customers.
Predatory Pricing: Outlaws offering prices significantly below production costs to eliminate competitors from the market.
2. Exemptions and Decision-Making Process
Article 9 provides exemptions for certain agreements or practices that may be essential for economic development, performance improvement, or consumer benefits. Article 10 outlines the decision-making process for exemptions, including evaluation criteria and timelines
3. Economic Concentration and Regulatory Oversight
Article 12 requires establishments to submit applications for operations that could impact competition. The establishment of the Competition Regulatory Committee (Articles 16–22) is mandated to oversee and enforce competition laws. Penalties for violations are detailed in Articles 23–29, encompassing fines, closure of establishments, and publication of rulings.
4. Legal Proceedings and Enforcement
Articles 31–34 elaborate on legal proceedings and appeals, emphasizing that competition cases will be heard summarily. The law empowers specific employees with law enforcement capacity to establish violations (Article 35). A five-year statute of limitations for complaints related to anti-competitive practices is established under Article 37.
5. Implementing Regulation and Abrogations
Article 38 directs the Council of Ministers to issue the Implementing Regulation within six months of the Decree-Law’s entry into force. Article 39 revokes Federal Law No. 4/2012 and any conflicting provisions, emphasizing that regulations, decisions, and laws issued based on the previous law will remain effective until replaced by new ones aligned with the Decree-Law.
🏛️ Enforcement Authority: The Competition Regulatory Committee
The Competition Regulatory Committee is tasked with overseeing and enforcing competition laws in Iran. It is empowered to:
Investigate anti-competitive practices.
Impose penalties for violations.
Grant exemptions under specific conditions
The Committee operates independently and is supported by the National Competition Council, which manages its professional and executive affairs.
⚖️ Legal Proceedings and Appeals
Appeals Process: Decisions made by the Competition Regulatory Committee can be appealed to a Retrial Board, comprising Supreme Court judges and economic experts. The appeal must be filed within 20 days for residents and two months for those abroad.
Enforcement of Decisions: Once a decision is finalized, it can be enforced through the competent court, allowing affected parties to claim damages.
📈 Implications for Businesses
The implementation of Federal Decree-Law No. 36 of 2023 signifies a robust approach to regulating market behavior in Iran. Businesses operating within the country should:
Ensure compliance with anti-competitive practices regulations.
Monitor and report any activities that may lead to monopolistic behaviors.
Seek legal counsel when considering mergers or acquisitions that could impact market competition.
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