Oman’s Legal Framework on Fair Market Competition and Monopoly Prevention

The Competition Protection and Monopoly Prevention Law, promulgated by Royal Decree No. 67/2014, as amended up to Royal Decree No. 22/2018, sets out Oman’s rules for protecting free competition and preventing monopoly. Speaking to the Times of Oman, Dr. Mohammed Ibrahim Al Zadjali, Chairman of Mohammed Ibrahim Law Firm, explained that “the law applies to all production, trade, and service activities in the Sultanate, and to any economic or commercial activities carried outside the Sultanate that have an impact within it. It also applies to the misuse of intellectual property rights, trademarks, patents, and publications, where this leads to adverse effects on competition. The law does not apply to public utilities wholly owned and managed by the state, and to research and development activities conducted by public or private bodies.” “The law prohibits any agreement or practice aimed at preventing, limiting, or weakening competition, including price-fixing, market division, and limiting production. A person or group of persons is considered dominant where its share of the relevant market exceeds 35 percent. A dominant person is also prohibited from selling below actual cost to obstruct or exclude competitors, or from restricting supply to create an artificial shortage, he said.” Dr. Al Zadjali stated that “any person intending to carry out a disposal that results in an economic concentration must submit a written request to the Centre before proceeding. The Centre must issue a decision within 90 days of receiving the request, failing which the request is deemed accepted. No concentration shall be approved if it results in the acquisition of more than 50 percent of the relevant market.” “Violations of the provisions on monopolistic agreements, anti-competitive practices, and abuse of dominance carry imprisonment of three months to three years and a fine equivalent to the profits gained from selling the violating products, or either of them, in addition to a percentage of between 5 and 10 percent of the violator’s total annual sales of those products in the last completed fiscal year. Violations concerning economic concentration and obstruction of investigators carry imprisonment of one month to three years and a fine of OMR 10,000 to OMR 100,000, or either of them, he said.” This framework reflects the Sultanate’s commitment to a transparent, competitive marketplace that protects both businesses and consumers from monopolistic harm, he concluded. (Mohammed Ibrahim Law Firm ([email protected]), (+968 244 87 600) was established on 14th December 2006 and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas. It offers legal representation across a wide range of practice areas that include Labour Law, Corporate, Commercial, Contracts, Banking and Finance, International Trade, Foreign Investment, Insurance, Maritime Law, Construction and Engineering Contracts, International Arbitration, Intellectual Property and more).