The Competition and Antitrust Act No. 14 of 2010, officially published in the gazette on March 9, 2010, was established to oversee competitive practices and curb monopolistic behavior. This Act governs production, commercial transactions, and service-related activities carried out by individuals or entities within the country. Additionally, it extends to economic activities conducted abroad provided their effects manifest within the country.

The Market Imperative

The Iraqi government’s drive toward robust economic transformation necessitates, the accelerated development of its institutional and regulatory frameworks; Fair competition is now recognized as a vital component for ensuring rapid and effective economic growth and achieving global standards.

The central enforcement body of this new mandate is Competition and Antitrust Council (CAC). A governmental institution Which operates directly under the Prime Minister’s Secretariat. The council’s strategic purpose Is not only enforcing the Act but also hold a role for the institutional development. It is tasked with preparing the general plan for competition and antitrust and related legislative drafts.

Compliance Framework: Key Operational Power

• Operational Monitoring: Pursuant to the Council’s mandate, mechanisms are implemented for continuous market monitoring to prevent price manipulations and ensure corporate compliance with the provisions and guidelines of the Competition and Antitrust Act.
• Investigation and Information Gathering: The CAC is empowered to launch investigations by receiving formal complaints. Its authorized employees are granted the power to enter commercial premises -At working hours-, conduct inspections, examine documents and retain documents for investigation purposes for up to 30 days Pursuant to Article 8 of the Competition and Antitrust Act.
• Merger Control Review: The act strictly prohibits any merger between two or more companies if the resulting entity would control 50% or more of the production of a good or product. The CAC actively fields the Company Merger Registration Form for mandatory pre-clearance notification of such transactions Pursuant to Article 9 of the Competition and Antitrust Act.
• Imposing of Sanction: The act stipulates sever penalties for non-Compliance that can go up to 3-years of imprisonment Pursuant to Article 13 of the Competition and Antitrust Act.

Strategic and Risk Management

Compliance mandates are immediately actionable across several aspects; businesses must adopt a proactive and strategic approach to ensure full compliance with competition and antitrust laws. Regulatory scrutiny is intensifying across critical areas such as pricing practices, mergers and acquisitions, and sector-specific conduct. These advisory outlines essential compliance considerations in three high-risk domains

• Pricing Risk Mitigation: Businesses must ensure that all agreements – whether written or verbal–strictly avoid breaching the competition rules such as; Below-cost pricing, Collusive Agreements, Bid Rigging, Barriers to Entry, among others Pursuant to Article 10 of the Competition and Antitrust Act.
• M&A Due Diligence: companies must adopt meticulous internal protocols to avoid running afoul of Article.9 of The Competition and Antitrust Act prohibitions against controlling 50% or more of a market through merger. Furthermore, during registration; it is mandatory to ensure that the application explicitly addresses and excludes clauses prohibited under the same article.
• Proactive Compliance Advisory: Firms operating in key sectors like Finance, Pharmaceuticals, Tech, Energy and Telecommunications. should actively seek legal and regulatory advice regarding the CAC current sectoral focus, as this reflects immediate enforcement Priorities. Early alignment with regulatory expectations not only mitigates legal risks and exposure but also strengthens corporate credibility and market competitiveness.

The Development of the competition and antitrust in Iraq and the CAC, evidenced by its strategic focus on key sectors confirms the irreversible commitment of Iraq to rigorous competition law enforcement. The enforcement environment requires specialized advice to navigate M&A filling thresholds, internal conduct prohibitions, aligning with the CAC ongoing regulations

At Muayad & Associates, our dedicated team of lawyers delivers strategic advice and robust representation on a wide range of competition matters, including cartel investigations, abuse of dominance, merger control, and compliance advisory. We are committed to helping clients navigate complex regulatory frameworks while minimizing risk and ensuring alignment with both national and international competition standards.