Ammon News - The Lower House of Parliament on Wednesday approved, by majority vote, the amended Competition Law of 2025, comprising 20 articles. The amended law aims to strengthen competition safeguards, enhance regulatory clarity, and improve oversight mechanisms governing market practices and economic concentration, in line with national efforts to promote a fair and competitive business environment.

The decision was taken during a legislative session chaired by Speaker Mazen Qadi and attended by Prime Minister Jafar Hassan and members of the Cabinet. First Deputy Speaker Khamis Atieh chaired part of the session. The Lower House endorsed Articles 4 through 20 of the amended law during the session, having approved Articles 1, 2, and 3 at a previous sitting held January 14.

Article 4 was approved by majority vote after endorsing amendments introduced by the Parliamentary Economy and Investment Committee. The amendments revise provisions related to practices exempted from anti-competition rules, stipulating that exemptions may be granted when they lead to demonstrable positive outcomes that cannot be achieved otherwise. These include improving production or distribution systems, promoting technological or economic progress, and delivering tangible benefits to consumers, provided such exemptions do not restrict or prevent competition in essential market elements.

The amendments also transfer certain powers from the minister to the director, set a maximum period of 90 working days for issuing reasoned decisions on exemption applications following notification of completion, and require publication of exemption decisions or summaries thereof in the Official Gazette, with the right to appeal before the Administrative Court.

The Lower House also approved Article 5 of the amended draft law, which repeals and replaces Article 8 of the original law. The revised article regulates all matters related to exemption applications, including conditions, duration, periodic review, and withdrawal, through instructions issued by the competent authority, based on a recommendation.

In addition, the Lower House approved Article 6, amending Article 9 of the original law concerning economic concentration. The amendments redefine economic concentration to include mergers, acquisitions, joint ventures, or other arrangements that enable direct or indirect control or effective influence over another institution’s operations and decisions. They also require prior written approval for concentrations exceeding revenue thresholds determined by the Cabinet and adjust references to the competent authority responsible for approvals and oversight.

The Lower House also approved, by majority vote, Article 7 of the amended draft Competition Law, endorsing the recommendations of the Parliamentary Investment Committee.

The approved article amends Article 10 of the original law governing applications for economic concentration. The amendments replace references to the "Directorate" with the "Department," revise application procedures, and introduce updated review mechanisms aimed at enhancing transparency and regulatory efficiency.

Under the amended provisions, institutions may conduct preliminary consultations with the Department to determine whether prior approval is required for intended economic concentration operations or to clarify application procedures. The Department is tasked with verifying the completeness of applications and may request additional information or documents before issuing a notification confirming completion, without prejudice to its right to seek further data during the review process.

The amendments require the Director to issue a reasoned decision within 30 working days from the date of notification of application completion. The decision may either approve the economic concentration if it does not significantly reduce effective competition in the market or refer the application to a second-stage review for an in-depth assessment of its competitive impact.

If an application is referred to the second-stage review, the Department must announce the decision, at the applicant’s expense, in two widely circulated local daily newspapers and on its website. The announcement will include a summary of the application and invite interested parties to submit their views within 15 days.

All matters related to applications for economic concentration approval, including required data and documents, review criteria, and procedural timelines, will be regulated through instructions issued by the competent authority, in line with the amended framework.

The draft law also provides for the establishment of a Competition Affairs Council as an advisory body responsible for formulating national competition policy, with representation from both the public and private sectors. In addition, it introduces stricter penalties for repeat violations, narrows exceptions and related criteria, and enhances tools for detecting anti-competitive practices.

The amendments form part of broader reforms aimed at developing competition policy implementation mechanisms in the Kingdom by strengthening the institutional capacity of the Competition Protection Department, enhancing its technical independence, executive authority, and decision-making tools, and expanding investigative powers in line with international best practices.

The Competition Law amendments align with the Economic Modernization Vision and its Executive Program, which seek to promote free and effective competition, foster a fair business environment, stimulate innovation and sustainable growth, and protect consumers from monopolistic practices.

Petra