Experts: The "Amended Competition Law" Protects the Market and Supports Investments - Jordan News

Jordan News

09-03-2025

Economic and legal experts affirmed that the draft amended Competition Law for 2025, approved by the Cabinet a few days ago, is extremely important in limiting any practices that could harm the local market, thus supporting the attraction of investments. اضافة اعلان In an interview with the Jordan News Agency (Petra), the experts stated that the amendment includes key provisions that would benefit the national economy, particularly in addressing unjustified price increases if it is implemented properly by establishing a Competition Council as outlined in the amendment. They pointed out that having independence in making decisions related to monopolistic practices and price setting through the Competition Council would strengthen the investment environment. Last week, the Cabinet approved the draft amendment to the Competition Law for 2025, preparing it to be sent to the Parliament for discussion and the necessary procedures for its formal approval. The aim of the draft law is to develop mechanisms for implementing competition policies in the Kingdom by enhancing institutional capacity for the administrative body responsible for applying the law according to best global practices. This includes granting the Competition Protection Directorate sufficient independence in decision-making, executive powers, and the development of tools for investigating complaints and the ability to pursue them with the Public Prosecutor. The draft law comes as part of a series of legislations linked to the economic modernization vision and its executive program, driven by the government's effort to enhance and protect free and effective competition in the Kingdom. It aims to create an economic environment based on fair competition, which serves as a foundation for sustainable economic growth, stimulates development and innovation, and acts as a tool for protecting consumers from monopolistic practices, ensuring they have access to diverse products and services of quality and at competitive prices. The draft law includes the establishment of a "Competition Affairs Council," which will work as an advisory body responsible for setting the general competition policy in the Kingdom. The council will include members from both the public and private sectors. The law's amendments could also contribute to improving Jordan's ranking in global business facilitation standards and attracting investments within a fair competitive environment. The amendments also include stricter penalties for repeat competition violations, narrowing the scope of exemptions in the law and criteria for granting them, and developing tools to detect anti-competitive practices according to best practices that regulate competitive environments. Legal expert and Professor of Law at Ajloun National University, Dr. Muntaser Al-Qudah, stated that the timing of the draft amendment to the Competition Law is appropriate. He emphasized that the law is crucial for protecting the market from monopolistic practices by certain traders who possess significant financial capabilities and can control certain goods and services by setting their prices. Dr. Al-Qudah affirmed that the law is very important, with the Competition Directorate at the Ministry of Industry, Trade, and Supply playing an essential role in protecting consumers from monopolies and the potential dominance of some business owners in the local market. He pointed out that the current law includes a committee chaired by the Minister of Industry and Trade, whereas the new amendment proposes the formation of a Competition Affairs Council, which must include experts and competent individuals to enhance its supervisory and executive role when necessary. He further noted that the financial penalties in the current law are somewhat adequate, but he called for a clearer and more detailed specification of the authority's powers, particularly concerning the issue of economic concentration. Commercial law attorney, Baha Al-Aramouti, mentioned that the current competition law, issued in 2004, has not been effectively enforced. He emphasized that activating it would help limit illegal practices such as price-fixing agreements and monopolies. The draft law, with its establishment of the Competition Council, will help curb these practices due to its independence. Al-Aramouti added that the amendment would restrict the Ministry's powers in granting exemptions from the application of the Competition Law, which is excellent for regulating the market. He also emphasized that the council would be responsible for developing plans to study markets, investigate reasons for price increases, and take necessary actions without waiting for complaints. Dr. Iyad Abu Hiltam, President of the East Amman Industrial Investors Association, noted that the current Competition Law, supervised by the Competition Directorate at the Ministry of Industry, Trade, and Supply, is one of the requirements of international laws and agreements related to anti-monopoly practices. It aims to ensure fair competition, protect consumers, and meet the conditions for joining the World Trade Organization and improving Jordan's position on competitiveness and investment indicators. He added that having a Competition Law enhances the investment environment, as both local and foreign investors seek laws that protect competitors' rights and reduce market distortions, attracting more investments. Abu Hiltam considered the amendment of the current law highly important for institutionalizing the work of the proposed advisory council, which would give the private sector a role in organizing market practices. Dr. Qasem Al-Hammouri, Professor of Economics at Yarmouk University, stated that activating the Competition Law will have a significant impact on improving economic growth and the investment environment. For his part, Dr. Mohammad Obaidat, President of the National Consumer Protection Association, affirmed that the existence of a Competition Law is closely linked to the most important consumer right — the right to choose the product or service they wish to acquire from a variety of available alternatives in the market. This law also ensures their right to be informed about the characteristics and specifications of goods and services.
He added that activating the Competition Law protects consumers from policies that may be practiced by some producers or traders. He emphasized that both the Consumer Protection Law and the Competition Law aim to establish preventive measures that improve and protect consumers from monopolistic practices or market dominance. (Petra)