On 31 August 2020, the President ratified the Competition Act (Law Number 11/2020) (the Act), which is intended to curb anti-competitive practices of businesses and the abuse of a dominant position in the market. The Competition Bill, which was presented to the parliament on 27 November 2019, was passed by the parliament on 18 August 2020.

The Act contains the following three key prohibitions:

• Anti-competitive agreements and practices, including:
  • fixing purchase or selling price or any other trading conditions;
  • limiting or controlling production, markets, technical development or investment;
  • dividing up markets and agreeing to sell only to the allotted segment of the market (market sharing); and
  • refusal to deal;
• Abuse of a dominant position, including:
  • selling a product or service at a loss or at an uncompetitively low price to force competitors out of the market (dumping);
  • predatory behaviour towards competitors;
  • limiting production, markets or technical development to the prejudice of consumers; and
  • concluding contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of the contracts;
• Mergers and acquisitions that substantially lessen competition.

The Act grants the Ministry of Economic Development enforcement powers, including the power to investigate suspected infringements, impose infringement penalties and grant specific or block exemptions under certain circumstances. The Ministry is required to publish relevant regulations within 6 months from the date of effect of the Act.

The Act would come into effect on 28 February 2021, except for provisions pertaining to mergers and acquisitions, which would come into effect on 31 August 2021.