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ANTITRUST “UNFAIR COMPETITION”
IN THE MIDDLE EAST
Prepared by : Nour SaleemPrepared by : Nour Saleem
www.naslaw.com
Dubai: UAE

Table of Content
Unfair Competition Definition
Unfair Competition and .....
Unfair Competition & International Conventions
Monopoly & Foodstuff Business in UAEMonopoly & Foodstuff Business in UAE
UAE as Bench mark of MENA Rules & Regulations
Rules & Regulations
Competent Authorities
Why is it so important for companies to respect
competition law?

Unfair Competition Definition
Unfair competition in a general sense means that
the competitors compete on unequal terms, because
favourable or disadvantageous conditions arefavourable or disadvantageous conditions are
applied to some competitors but not to others; or
that the actions of some competitors actively harm
the position of others with respect to their ability to
compete on equal and fair terms.

Unfair competition and ....
Data Protection
Trade Secret
Know How
Intellectual Property (Trademarks, Patent
& Copyright)

Unfair Competition & International
Conventions
Paris Convention
for the Protection of Industrial Property 1967
TRIPS [ trade-related aspects of intellectual
property rights ] 1994

Conventions
UAE is a member in Paris Convention
for the Protection of Industrial Property
Scope of Agreement
The protection of industrial property has as itsThe protection of industrial property has as its
object patents, utility models, industrial designs,
trademarks, service marks, trade names, indications
of source or appellations of origin, and the
repression of unfair competition.

Conventions
Article 10bis - Unfair Competition
(1) The countries of the Union are bound to assure to nationals of such
countries effective protection against unfair competition.
(2) Any act of competition contrary to honest practices in industrial or
commercial matters constitutes an act of unfair competition.
(3) The following in particular shall be prohibited:(3) The following in particular shall be prohibited:
(i) all acts of such a nature as to create confusion by any means whatever with
the establishment, the goods, or the industrial or commercial activities, of a
competitor;
(ii) false allegations in the course of trade of such a nature as to discredit the
establishment, the goods, or the industrial or commercial activities, of a
competitor;
(iii) indications or allegations the use of which in the course of trade is liable
to mislead the public as to the nature, the manufacturing process, the
characteristics, the suitability for their purpose, or the quantity, of the goods.

Conventions
Article 10ter
Marks, Trade Names, False Indications, Unfair Competition:
Remedies, Right to Sue
(1) The countries of the Union undertake to assure to nationals of the
other countries of the Union appropriate legal remedies effectively
to repress all the acts referred to in Articles 9, 10, and 10bis.to repress all the acts referred to in Articles 9, 10, and 10bis.
(2) They undertake, further, to provide measures to permit
federations and associations representing interested industrialists,
producers, or merchants, provided that the existence of such
federations and take action in the courts or before the
administrative authorities, with a view associations is not contrary to
the laws of their countries, to the repression of the acts referred to in
Articles 9, 10, and 10bis, in so far as the law of the country in which
protection is claimed allows such action by federations and
associations of that country.

Conventions
TRIPS [ trade-related aspects of intellectual
property rights ] 1994
1. In the course of ensuring effective protection1. In the course of ensuring effective protection
against unfair competition as provided in
Article 10bis of the Paris Convention (1967),
Members shall protect undisclosed information in
accordance with paragraph 2 and data submitted
to governments or governmental agencies in
accordance with paragraph 3.

Conventions
2. Natural and legal persons shall have the possibility of preventing
information lawfully within their control from being disclosed to, acquired by,
or used by others without their consent in a manner contrary to honest
commercial practices (10) so long as such information:
(a) is secret in the sense that it is not, as a body or in the precise configuration
and assembly of its components, generally known among or readily accessible
to persons within the circles that normally deal with the kind of information in
question;
to persons within the circles that normally deal with the kind of information in
question;
(b) has commercial value because it is secret; and
(c) has been subject to reasonable steps under the circumstances, by the
person lawfully in control of the information, to keep it secret.
3. Members, when requiring, as a condition of approving the marketing of
pharmaceutical or of agricultural chemical products which utilize new chemical
entities, the submission of undisclosed test or other data, the origination of
which involves a considerable effort, shall protect such data against unfair
commercial use. In addition, Members shall protect such data against
disclosure, except where necessary to protect the public, or unless steps are
taken to ensure that the data are protected against unfair commercial use.
KNOW HOW
Trade Secret

Monopoly & Foodstuff Business in UAE
In October 2005 The UAE Cabinet decided to
eliminate the monopoly for the foodstuffs products
The Decision was in line with World Trade
Organization (WTO) stipulations

Legal Systems on Unfair Competition in UAE
Rules & Regulations
Criminal
Civil & Commercial Law in UAE
Remedies
Suits (Courts)
Consumer Protection Department
Economic Department
Trade Mark Enforcement Actions

Rules & Regulations
Federal Law No. 24/2006 of the Consumer
Protection Law
Commercial Transactions Law No. (18) for the yearCommercial Transactions Law No. (18) for the year
1993, which stated the following:
- “Article (64): (not permissible for the Merchant to
lure workers and users of another rival merchant to
grab the clients of this merchant or get out of the
service of this merchant

Rules & Regulations
Article 65 of Commercial Law “Not permissible for the
Merchant to broadcast things contrary to the truth
concerning the origin of goods or their descriptions or
other matters concerning the nature, importance, and he
may not announce in contrast to the fact that he holds amay not announce in contrast to the fact that he holds a
rank or a certificate or award does not resort to any
other ways of involving non-health with a view to grab
customers rivalled another dealer and was only liable
for compensation” (mislead the public ,false allegations
create confusion)

Rules & Regulations
Article 66 of Commercial Law “Not permissible for
the Merchant resort to methods of fraud and fraud
in the conduct of his goods, or to broadcast or to
publish false statements that damage the interests
of another dealer and competing with him,of another dealer and competing with him,
Otherwise he will be responsible for compensation”

Rules & Regulations
Article 423 (UAE Punishment law)
Without prejudice to any greater penalty is punishable by
imprisonment and fine or either penalty of cheating a
contractor with the fact of goods or the nature or essential
features or elements of the composition or the type offeatures or elements of the composition or the type of
goods or source in the circumstances in which that a major
cause in the contract or in the number of goods or the
amount or measured or agent or weight or capacity, or in
self-goods if the peace which is what has been contracted.
And punished with the same punishment of imported or
bought or promoted these goods for trade where he knows
what they are

Remedies
• Suits (Courts) : through competent courts in the country
• Consumer Protection Department : at UAE Ministry if Economy
and it is the Authority which implement the Consumer Protection
Law
• Economic Department : Anti Commercial Fraud and Trademark
Infringement
• Trademark Office : function of the Trade-marks Office is to
prevent anyone else from registering a mark that is the same
as or confusingly similar to existing mark. It does not, however,
keep an eye out for cases of infringement

Why is it so important for companies to respect
competition law?
• Violations of Competition law are subject to severe
consequences
• Reputation damage for its Brands
• lawsuits for damages running into the tens or even
hundreds of millions.hundreds of millions.
• Lengthy investigations by competition authorities and
loss of management time.
• Possibly criminal prosecution of individuals.
• Financial fines

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