Overview
Law No. 72 of 2020 on Competition Protection (which replaced Law No. 10 of 2007) governs competition rules in the Kuwaiti market, aiming to prevent monopolistic practices and anti-competitive agreements, and to ensure a fair business environment for all competitors.
Prohibited Practices
- Agreements between competitors to fix prices or divide markets.
- Abuse of a dominant position in a given market.
- Mergers and acquisitions that could substantially harm competition without obtaining prior authorisation.
When Notification to the Competition Authority Is Required
Companies must notify the competent authority before completing mergers or acquisitions that exceed certain market share thresholds, or that could affect the competitive structure of the relevant sector. Failure to notify, or violating the law's provisions, may expose a company to financial penalties reaching significant percentages of the violator's revenue.
What This Means for Your Company
Before entering into any long-term commercial agreement with a competitor, or considering an acquisition, it is important to assess the potential impact on competition in the relevant market early — an assessment that saves considerable time and cost compared with addressing a violation after the fact.