Myanmar enacted its competition law (The Pyidaungsu Hluttaw Law No. 9 /2015) (“Competition Law”) on 24 February 2015. The President was then left to determine when it would come into force and implementing rules and regulations (“Rules”) were to be introduced within a 90 day statutory waiting period.
Myanmar enacted its competition law (The Pyidaungsu Hluttaw Law No. 9 /2015) (“Competition Law”) on 24 February 2015. The President was then left to determine when it would come into force and implementing rules and regulations (“Rules”) were to be introduced within a 90 day statutory waiting period.
One of these two conditions has been satisfied with the issuance of Notification No 69/2015 by President Thein Sein on 2 December 2015. In this Notification, the President has stated that the Competition Law will come into force on 24 February 2017.
The Competition Law establishes a legislative foundation for the Competition Commission as the regulatory authority and outlines a basic structure for the regulation of agreements that restrain competition, abuse of dominance, mergers and unfair trade practices. The Rules are expected to add the necessary detail and guidance to give substance to the Competition Law. The deadline created by this Notification will likely add significant pressure on the Myanmar government to draft and approve the Rules and quickly establish the Competition Commission.
WHAT YOU HAVE TO KNOW
- The Competition Law provides the basic framework of a comprehensive competition policy in Myanmar and will be in force February 24, 2017.
- The Competition Law prohibits certain anti-competitive acts such as abuses of dominance, mergers and unfair trade practices.
- The Competition Law will have teeth – there are strong penalties (e.g. imprisonment of directing minds) that are potentially applicable.
- There is a significant amount of detail and guidance required from the forthcoming Rules and the Competition Commission in order to ensure that the Competition Law is effectively implemented and that its provisions are properly understood.
- Businesses should start early to audit their conduct to determine potentially prohibited activities so that they are ready when the Competition Law comes into effect.
DFDL Contact:
David Fruitman
Regional Competition Counsel/Senior Counsel
david.fruitman@dfdl.com
*The information contained in this legal update is provided for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
