Public utilities are exempt from the purview of the Law for the Protection of Competition and Prevention of Monopoly, issued by Royal Decree 67/2014 and amended by Royal Decree 22/2018, according to the head of the watchdog agency overseeing the implementation of this new legislation.
Dr Dhafir al Shanfari (pictured), Acting CEO of the newly established Competition Protection and Monopoly Prevention Centre, the statute is primarily designed to safeguard free market practices while dissuading businesses from engaging in behaviour that skews market conditions in their favour.
Speaking to the Observer, Dr Al Shanfari, who is also CEO of the Omani Authority for Partnership for Development (OAPFD), said Executive Regulations of the anti-competition and anti-monopoly law, due to be issued shortly, will spell out which state-owned utilities are not subject to the purview of the statute.
“In the law, there is an exemption of publically owned utilities — the definition of what these entities are will be declared in the upcoming Executive Regulations,” said the Acting CEO. “The Executive Regulations will be issued as soon as the new Board of Directors is convened, and we have a draft, as well as the processes, for them to approve.”
Established by Royal Decree, the Competition Protection and Monopoly Prevention Centre says its mission is to “provide a robust and enlightened competition regime that forms the enabling framework to grow a vibrant economy with competitive markets and innovative businesses”. This, in turn, will strengthen the ability of local companies to compete in the international market. “It will also attract foreign investment to Oman because companies know that they will compete on a level playing field,” it noted.
Since its enactment, the regulatory underpinnings and administrative framework are substantially in place, according to Dr Al Shanfari. “The Centre was established in January 2018, while the Board has been recently approved. There will be a full-time CEO as well. In the meanwhile, there has been progress in establishing the systems, website and hotline, while an awareness campaign has commenced as well.”
The law, said Dr Al Shanfari, is critical to the goal of ridding the marketplace of certain practices detrimental to the growth of a competitive business environment. “In terms of economic value, this law is very important at this stage as you look at the broader Oman ecosystem. This law is being enforced to minimise some unethical practices and correct any existing structural issues in order to protect businesses from other businesses. Thus, while the Consumer Protection Law protects consumers from businesses, the Law for the Protection of Competition and Prevention of Monopoly protects businesses from businesses to ensure there is healthy competition, which at the end of the day, will benefit both the economy and consumers.”
Asked if the Centre has begun receiving complaints relating to anti-competitive and monopolistic practices, he replied: “Yes, but not very many!”
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