Raad Mahmoud Al-Tal

Jordan's markets have seen significant improvements during the first four months of 2025, showing clear progress in the business environment. The Ministry of Industry and Trade reported a 26 per cent drop in commercial violations compared to the same period in 2024. From January 1 to April 21, 1,120 violations were recorded, down from 1,521 in the previous year, indicating a decrease in illegal activities in the market. This decline helps reduce price manipulation, which in turn improves the consumer experience and boosts their confidence in the market. As prices fall and goods become more available, markets become more flexible and able to handle seasonal shocks, helping balance supply and demand.

The ministry has increased its monitoring efforts, conducting over 24,000 inspections of various businesses. It also dealt with 420 consumer complaints, most related to the prices of goods and services. Recent studies by the ministry showed that the country's stock levels of goods exceed actual demand.

These results are positive signs of the market becoming more organized and transparent. However, these improvements are closely linked to the role of competition in enhancing economic performance. Competition is not just about having more companies or sellers, but also about having a legal framework that regulates business behavior, prevents monopolies and price manipulation, and encourages companies to improve product quality, services, and innovate in production and marketing.

In a market that is properly monitored and follows fair competition rules, illegal practices like price hikes, fraud, monopolies, and misleading consumers naturally decrease. Following the law becomes not just an obligation for businesses but a key factor in their survival and ability to compete effectively. The ministry has stated that the decline in violations reflects "increased institutional confidence and legal commitment from market participants," which helps strengthen economic stability.

Competition should not be seen only as a regulatory tool, but as an important economic tool that helps create a healthy business environment. It encourages new players to enter the market, reduces economic concentration, and opens up space for innovation and better prices.

So, what is needed? Simply put, the competition law must be enforced more effectively. This law, with its recent updates, provides clear guidelines for defining economic activities in Jordan, including sectors like industry, trade, agriculture, tourism, services, crafts, and information technology. It also defines the market as the goods or services that consumers can use to meet their needs in areas where competition conditions are similar.

The law states that free competition is the basis for setting prices of goods and services, with exceptions for temporary government decisions to address special situations. These decisions should be reviewed within six months. The law also bans any agreements or actions that harm competition, such as price-fixing, restricting production or distribution, market-sharing, preventing new market entries, or collusion in tenders.

Moreover, the law prevents dominant companies from abusing their market position to harm competition or exclude others. This law is part of a broader effort to improve market policies and create a better business environment by giving the Competition Protection Department the authority and independence needed to oversee the market, investigate violations, and take legal action.

The competition law is a crucial part of Jordan's economic modernization vision. It aims to create a market based on fair competition, promote sustainable economic growth, encourage innovation, attract investment, protect consumers from monopolistic practices, and ensure a variety of high-quality, reasonably priced goods and services.

Raad Mahmoud Al-Tal is head of the Department of Economics – University of Jordan, r.tal@ju.edu.jo