Competition Law

Competition plays a major role in developing the business environment. The importance of competition is derived from the fact that it is mainly based on market freedom which is vital for the growth of businesses. Despite the importance of competition, Jordanian policy makers were not, until recently, concerned about developing a legislative framework to develop this area. However, things have changed and there is now considerable attention being paid towards the importance of competition which has taken the form of legislative and institutional activities.

The legislative activities related to competition are the promulgation of two laws. The first is the Unfair Competition and Trade Secrets Law No. 15 of 2000, the second being the Competition Law No.33 of 2004. The Competition Directorate within the MIT is responsible for the implementation of the Competition Laws and ensuring that all commercial practices are consistent with its provisions.

The overall effects of competition on investment need deeper analysis but one can suggest that generally the existence of sound legal organization should enhance the business environment and attract more investments. For foreign investors there are certain areas where Competition Law is significant. In particular, merger and acquisition practices are highly affected by competition and anti-trust rules. Thus, it should be noted that a comprehensive analysis of the importance of competition policies on investments is required.