Overview of Iraq’s Competition Law
Competition Focus
Aro OmarSenior Associate,Corporate Commercial
Shangar HusseinIntern,Corporate Commercial
The Competition and Anti-Trust Law No. 14 of 2010 (“CAL”) serves as Iraq’s primary legislation regulating market competition and addressing anti-competitive practices. Pursuant to Article 2 of the CAL, the purpose of the law is to regulate competition in the market and prevent monopoly practises that are detrimental to participants in the economy.
The CAL’s reach extends to both natural and legal persons involved in economic activities within Iraq (with the exception of certain governmental decisions on price-control), with extraterritorial reach for activities impacting the Iraqi market.
The Kurdistan Region of Iraq (KRI), however, maintains a separate legal framework for competition. This overview provides a detailed look into CAL’s key provisions, recent developments, and considerations for businesses.
Article 4.1 of the CAL calls for the establishment of the Council of Competition and Anti-trust Affairs (hereinafter "Council"), designated as the primary governmental body for enforcing the CAL.
The Council was established in July 2023 and operates as an autonomous body with administrative and financial independence, while still reporting to the Prime Minister’s Office.
Article 7 of the CAL, provides wide-reaching powers to the Council to enforce the CAL in general and includes the following tasks:
Investigate information and practices that violate the rules of competition and prevent monopoly in cooperation with the relevant authorities in accordance with the provisions of the legislation.
Conducting investigations into the practices it discovers or based on the complaints and information it receives, or those assigned to it by the court, and preparing reports on its results.
Issuing directives on issues related to its work on its own or at the request of the relevant authorities.
Issuing a guide on all matters related to monopoly, merger and restricted commercial practices.
To seek the assistance of experts or consultants to accomplish any of the works that fall within its competence.”
The recent establishment of the Council signifies a governmental initiative to implement the law. However, the specifics regarding the policies, extent of enforcement, and timelines for implementation that the Council will adopt remain unclear.
Furthermore, Article 13.2 of the CAL allows for private civil claims to be filed directly to the relevant court. To our understanding private civil claims under the CAL are presently rare.
Registration and Scope of the CALThe law requires commercial agreements exhibiting certain anti-competitive traits to be registered with the Council, though it does not specify which party is responsible. Businesses engaged in such practises may face regulatory scrutiny if their practices are perceived to limit competition. The law covers economic activities inside and outside Iraq if they affect domestic competition. The Council has 30 days to respond to registration requests, but due to the absence of precedent, it remains unclear how this process will unfold practically.
The CAL explicitly prohibits several anti-competitive practices designed to maintain market fairness. These include:
Fixing prices of goods or services, including terms of sale.
Fixing quantities of goods or services.
Dividing the market based on geographical location, sale quantities, purchase quantities, customers, or on any other basis, which may have anti-competitive effects.
Restricting or preventing companies from entering Iraqi markets, or causing them significant losses, including selling below cost (at a loss).
Colluding in tender bids.
Discriminating between customers of the same goods or services in prices or other sale terms.
Compelling a customer to abstain from dealing with a competitor.
Refusing to deal with a specific customer on usual commercial terms without a legal excuse.
Monopolizing a resource essential for a competitor to operate, or buying a product or service in such volume that it drives up the price or prevents it from decreasing in the market.
Making a sale or purchase of goods or services conditional on, the sale or purchase of other goods or services, the sale or purchase of a specific quantity; or providing another service.
Compelling a person (legal or natural) to accept specific prices or sale/purchase terms that are not justified, which gives the vendor a competitive advantage or inflicts harm upon the other party.
The establishment of the Council signals Iraq’s growing commitment to enforcing competition laws. The enforcement environment is anticipated to strengthen as the Council establishes clear policies and practices, with more focus expected on sectors like energy and telecommunications.
At Al Tamimi & Company we provide comprehensive support in navigating Iraq’s competition law by providing compliance reviews, guiding businesses on incorporating legal safeguards, and representing clients in disputes. We ensure that companies stay updated on regulatory developments to operate confidently in this evolving legal landscape.
For further information,please contact Aro Omar and Shangar Hussein.
Published in February 2025
