Obeid & Partners

Obeid & Partners

Competition Law No. 281 of 2022

03-23-2022

Lebanon has enacted its first long-awaited Competition Law No. 281 which was published in the Official Gazette on 17 March 2022.

Purpose

The purpose of the Competition Law is to promote and regulate free competition and prohibit trusts, monopolies and cartels. The Law also aims to protect consumers’ rights, achieve economic efficiency, enhance production, innovation, technical development and maintain high quality of products.

Scope of Application

The Competition Law applies to:

  • All activities of production, distribution and services carried out within the Lebanese territory, having anti-competitive effects in Lebanon, including economic activities carried out by legal persons of public law or carried out under concession contracts of public service.
  • All activities of production, distribution and services carried out outside Lebanon, having anti-competitive effects in Lebanon, taking into account the treaties between Lebanon and the country in which these companies are located;
  • Activities involving misuse of intellectual property rights, trademarks, patents and publication rights if they result in anti-competitive effects.

Main Features

  • The Law abolishes exclusive dealerships and exclusive commercial representation as previously protected under Commercial Agency Law No. 34 of 1967.
  • The Law establishes the National Competition Commission (Commission) which is an independent legal entity, under the tutelage of the Ministry of Economy and Trade, enjoying administrative and financial independence. The Commission is empowered to inter alia oversee the proper functioning of the markets, promote free competition, and control and evaluate restrictive businesses. The Commission is also vested with the exclusive right to decide on competition matters.
  • The Law restricts and regulates anti-competitive practices such as abuse of dominant position and economic concentration. The Law also prohibits agreements, decisions and practices that are anti-competitive.

Retroactive Effect of the Law

This Law shall not apply to activities the practice of which was commenced before the date of its entry into force, and the Commission may not in such cases impose fines except if these practices are still ongoing after that date.

All persons must regularise their situation in accordance with the provisions of the Law within a period not exceeding a year from the date of its entry into force, by revoking or ceasing any existing practice, agreement or arrangement before this date.

For more information, please contact our team at [email protected] .

Recent Work Highlights

Our lawyers at Obeid & Partners have extensive experience in complex cross-border matters. Since the establishment of the firm in 1987, we have represented various clients ranging from government and government entities to nationally and internationally renowned investors, corporations and individuals. Our clients are distinguished in their respective fields of expertise.

Our team holds a track record in handling complex local and international cases, of which relevant work highlights include:

Hospitality

Successfully representing multiple owners of shares in an unprecedented class action before the Lebanese courts, involving a landmark resort in Beirut. The matter involved complex proceedings in addition to requiring significant logistical and coordination skills for the various plaintiffs in the context of the class action. This prompted the firm to develop an in-house protocol […]

Educational Services

Successfully representing a dually licensed private university in relation to a criminal lawsuit as well as an administrative claim.

Aviation

Successfully representing a world leading provider of solutions for the travel industry, in relation to a series of complex disputes pending before the Lebanese courts, involving seizure matters, URL geo-blocking, payment claims, action on the merits, and other proceedings. 

States

Successfully representing foreign states before the Lebanese courts in a series of complex court actions involving both private and public international law issues, relating to advance payment claims, real estate and lease agreements. 

Banking and Finance

Successfully representing a major oil trader, in what is still known as the largest litigation in Lebanon involving a claim in excess of one billion dollars against one of the largest local banks.  This was a first-of-kind matter in the banking sector which challenged the amnesty in the current financial crisis in Lebanon and the […]

Oil and Gas

Successfully representing  a group in relation to a complex cross-border action involving worldwide freezing injunctions and document preservation orders with claim amounts exceeding USD 300 million. Our firm secured a first-of-a-kind decision from the Lebanese courts and advised on complex cross-border matters involving mareva injunctions.