The Sultanate of Oman’s evolving competition and anti-trust law has not yet been enacted or applied by way of enforcement action. But, the potential investors, who are planning to expand their business in the Sultanate, should tighten their belts and take every step to understand the soon to be effective law to ensure compliance.
Major Definitions
In Oman the Consumer Protection Authority along with its other significant powers and responsibilities regulates the freshly formulated anti-trust and competition law.Law defines Dominance as the ability of a person or group of persons, whether natural or judicial who jointly or severally attempt to ‘directly or indirectly’ concaving control over a particular market, and thereby acquiring a share exceeding thirty-five percent of the total volume of this particular market.
‘Economic Concentration’ includes any act which results in partial or full transfer of the interests, monies, assets (physical or intangible), shares, benefits or liabilities from one person to another and includes mergers or any other arrangement which results in a person or groups of persons being in a dominant position in direct or indirect way.
As per the provisions of Article 11 of the Law,a written request should be submitted to the authority by the persons who desire to execute any transaction which would result in an economic concentration providing details of such transaction.
The Authority is empowered to scrutinize the application and grant a judgment within a period of ninety days from the date of filing the application. If the authority fails to give any order within ninety days, it will be presumed as consent from the authority.
Penalties
The laws provides for very strict punitive provisions. However, applicant aggrieved from the decision of the authority has the right to make an appeal within 60 days in case of rejection of his application. The authority shall consider the appeal within 30 days from the date of submission by the applicant. If the authority fails to give any order within ninety days, it will be presumed as consent from the authority.
Though the Authority is granted with the powers to cancel any approval, previously granted, if it comes to the knowledge of the authority that the information provided by the applicant(s) is not true, correct or is fraudulent or made with malafide intensions.
The Law further provides that no transaction shall be approved which will result in economic concentration through acquisition of more than fifty percent of the relevant market.
Conclusions
As more and more countries are diverting their investment and business in the region, restraining monopolistic trade practices is becoming a crucial factor of consideration for the authorities in Oman. Though the awareness is increasing and regulators are taking effective steps for protection of interest of stakeholders, laws relating to promoting healthy competition and restricting monopoly still have a long way to go. Though the regulators are committed to provide effective system, the region still requires proactive and comprehensive procedures to retain and maintain the confidence of international investors.
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