Competition Law at Jordan
Here’s a comprehensive overview of Competition Law in Jordan:
Competition Law in Jordan
1. Legal Framework:
The primary legislation is the Jordanian Competition Law No. 33 of 2004, significantly amended by Law No. 18 of 2011 and again in 2018 to align better with international standards.
This law governs anti-competitive practices, merger control, and abuse of dominance in Jordan’s markets.
2. Objectives:
To promote free and effective competition.
To prevent monopolistic practices and restrictive agreements.
To enhance economic efficiency and protect consumer interests.
3. Regulatory Authority:
The Competition Directorate under the Ministry of Industry, Trade and Supply is responsible for enforcing the law.
It conducts investigations, enforces compliance, and handles merger review.
4. Key Provisions:
A. Restrictive Agreements:
Agreements between businesses that may prevent, restrict, or distort competition are prohibited.
This includes practices like:
Price fixing
Market allocation
Collusion on tenders
Limiting production or technical development
B. Abuse of Dominant Position:
A firm is considered dominant if it holds more than 40% market share.
Prohibited conduct includes:
Predatory pricing
Imposing unfair trading conditions
Refusal to deal
Tying or bundling products
C. Merger Control:
Mergers and acquisitions must be notified if the combined market share exceeds a certain threshold (typically 40%).
The Competition Directorate assesses whether the transaction could lessen or prevent competition.
D. Exemptions:
Certain agreements may be exempt if they provide economic benefits, such as improving efficiency or promoting innovation, without substantially harming competition.
5. Enforcement and Penalties:
The Directorate can investigate complaints, conduct market studies, and impose fines.
Penalties may include:
Fines up to 5% of annual revenues for anti-competitive conduct.
Orders to cease unlawful conduct.
Possibility of appeal to the Jordanian judiciary.
6. Recent Developments:
Jordan has been working to strengthen enforcement and align more closely with OECD and EU competition standards.
Public awareness and compliance campaigns have increased in recent years, particularly in sectors like telecoms, healthcare, and retail.
Summary
Jordan’s competition law regime is well-established and evolving, aiming to encourage competitive markets and protect consumers. Its enforcement has become more proactive, with attention to market abuses and mergers in key sectors.
RELATED Blog
0 comments