Competition watchdog green-lights economic concentration in steel sector
Published: 06:08 PM,Aug 06,2024 | EDITED : 06:08 PM,Aug 06,2024
The steel sector is a rapidly expanding industry in Oman. Picture for illustration only.
MUSCAT: The Ministry of Commerce, Industry, and Investment Promotion (MoCIIP), represented by the Competition Protection and Monopoly Prevention Centre, has approved a request for economic concentration in the steel sector. This move is aimed at enhancing economic efficiencies by fostering more competitive market conditions, creating more efficient economic entities, and benefiting the final consumer.
Last September, the Competition Protection and Monopoly Prevention Centre pledged to work closely and collaboratively with the local business community to combat anti-competitive practices in Omani marketplaces. According to a high-level representative, the Centre will focus on the importance of fairness and responsibility in business practices.
Nasra al Habsi, Assistant General Manager, acknowledged that some types of tenders, which may stipulate certain minimum criteria in support of Omanisation, in-country value (ICV) creation, and so on, may shut out some companies from bidding. While such stipulations are in the strategic national interest, other practices that are inherently anti-competitive will not be acceptable.
Sultan bin Saif al Maawali, Head of the Economic Concentration Requests Control Department at the Ministry, noted that some economic concentration requests might have adverse effects on competition, potentially creating barriers to market entry and expansion. This could restrict the ability of current or potential competitors to compete and hinder the flow of both local and foreign investments, especially new ones, which are crucial for increasing production capacities.
The Competition Protection and Monopoly Prevention Centre aims to enhance the effectiveness of the Competition Protection and Monopoly Prevention Law, issued by Royal Decree No. (67/2014). The goal is to regulate fair competition across all economic sectors to drive economic development, encourage and attract investments, and contribute to the growth of various economic sectors by attracting both national and foreign investments. Additionally, the Department of Economic Concentration Requests Control conducts subsequent oversight of economic concentration requests in cases of mergers or acquisitions.
Oversight of economic concentration requests is one of the most important functions within the department. It requires an effective system that ensures prompt handling and examination of these requests, analyzing them in a coordinated and high-quality manner to ensure legal certainty for the parties involved in the concentration and to guarantee the effectiveness of the decisions issued by the Competition Protection and Monopoly Prevention Centre regarding these requests, as well as compliance by the concerned parties.
Last September, the Competition Protection and Monopoly Prevention Centre pledged to work closely and collaboratively with the local business community to combat anti-competitive practices in Omani marketplaces. According to a high-level representative, the Centre will focus on the importance of fairness and responsibility in business practices.
Nasra al Habsi, Assistant General Manager, acknowledged that some types of tenders, which may stipulate certain minimum criteria in support of Omanisation, in-country value (ICV) creation, and so on, may shut out some companies from bidding. While such stipulations are in the strategic national interest, other practices that are inherently anti-competitive will not be acceptable.
Sultan bin Saif al Maawali, Head of the Economic Concentration Requests Control Department at the Ministry, noted that some economic concentration requests might have adverse effects on competition, potentially creating barriers to market entry and expansion. This could restrict the ability of current or potential competitors to compete and hinder the flow of both local and foreign investments, especially new ones, which are crucial for increasing production capacities.
The Competition Protection and Monopoly Prevention Centre aims to enhance the effectiveness of the Competition Protection and Monopoly Prevention Law, issued by Royal Decree No. (67/2014). The goal is to regulate fair competition across all economic sectors to drive economic development, encourage and attract investments, and contribute to the growth of various economic sectors by attracting both national and foreign investments. Additionally, the Department of Economic Concentration Requests Control conducts subsequent oversight of economic concentration requests in cases of mergers or acquisitions.
Oversight of economic concentration requests is one of the most important functions within the department. It requires an effective system that ensures prompt handling and examination of these requests, analyzing them in a coordinated and high-quality manner to ensure legal certainty for the parties involved in the concentration and to guarantee the effectiveness of the decisions issued by the Competition Protection and Monopoly Prevention Centre regarding these requests, as well as compliance by the concerned parties.