Thursday, March 28, 2024 | Ramadan 17, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Hefty penalties for anti-competitive, monopolistic market practices

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The Law for the Protection of Competition and the Prevention of Monopoly, issued by Royal Decree 67/2014 and amended by Royal Decree 22/2018, prescribes stiff penalties for market practices deemed uncompetitive and monopolistic.


The warning came in a workshop organised by the newly established Centre for Competition Protection and Antitrust Prevention held in North Al Batinah Governorate earlier this week. It was held as part of an awareness campaign launched by the Centre highlighting the supremacy of a free market system where prices for goods and services are determined by the open market and by consumers.


Addressing the workshop, Dr Dhafir al Shanfari (Pictured), CEO of the Omani Authority for Partnership for Development (OAPFD) and Acting CEO of the Centre, the provisions of the law shall apply to all engaged in production, trade, services and any other economic or commercial activities carried out in the Sultanate. It also covers economic or commercial activities outside the Sultanate that have implications on the Omani marketplace.


The provisions of the law also apply to the abuse of intellectual property rights and trademarks, patents and publication, if this has adverse effects on competition. The law excludes public utility activities that are fully owned and administered by the government, and also do not apply to research and development activities carried out by public or private entities.


Additionally, the law prohibits any practices that may thwart competition as well as other practices that may be carried out by dominant persons, including the determination of prices, discounts, terms of sale, purchase, service performance, quantification of production, or reduction of market flow or output In whole or in part, by concealing, storing or refraining from dealing with them.


The law also prohibits the sharing of any existing or potential market for products on a geographical or consumer basis, on the quality of customers, on a seasonal basis, on time periods or on the basis of goods, as well as prohibiting any practices that prevent, obstruct, suspend or exercise any person’s economic activity or Trade in the market or refuse to deal with specific individuals.


Offenders are liable to three years imprisonment and fines of up to RO 100,000. The penalty may also include a fine of up to 10 per cent of the total annual sales of products subject to the violation and other violations and administrative penalties as well as its negative impact on the reputation of the business.


The role and objectives of the Centre are to regulate freedom of economic activity. Established by Royal Decree 2/2018, the Centre is concerned with the application of laws and regulations relating to the protection of competition and the prevention of monopoly, the protection of markets from harmful practices, and the preparation of studies and research in the market to detect harmful practices in competition. The Centre can also receive and investigate complaints of anti-competitive and monopolistic practices, take appropriate decisions thereon and to examine proposals and recommendations received by the Centre in relation to competition protection and prevention of monopolies.


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