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In line with the ASEAN Economic Community Blueprint, Myanmar enacted its competition law on 24 February 2015 (Pyidaungsu Hluttlaw Law No. 9/2015). The law will come into force on a date to be determined by the President of Myanmar. Not unlike other jurisdictions, Myanmar's competition law addresses: (i) anti-competitive agreements; (ii) abuse of dominance; and (iii) merger control. In addition, the law also prohibits unfair trade practices as well as certain specified practices that lead to monopolisation of markets (e.g. limiting the availability of a good or service with the aim of controlling prices). In other words, it pursues both competition and consumer protection policy objectives.
While Myanmar's competition law provides a basic framework for regulating restrictive practices and conduct in Myanmar, a number of gaps and uncertainties under the law remains to be addressed. For example, it is unclear whether the new law is intended to have extraterritorial effect against foreign businesses if their anti-competitive behaviour outside of Myanmar has an effect within Myanmar. This is typically known as the "effects doctrine" and is widely adopted by a number of other jurisdictions. Another notable absence is an explanation on what constitutes abuse of dominance. It is conceivable that this would be elaborated in the implementing regulations or guidelines issued by the competition authority. Similarly, in respect of merger control, the thresholds are not set out in the law. Given the nascent state of development of competition law in Myanmar at this juncture, current and prospective investors in Myanmar would be well-advised to monitor the developments in this area as the law develops.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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Rajah & Tann Myanmar Company Limited Room No. 408(A), Prime Hill Business Square, No. 60, Shwe Dagon Pagoda Road, Dagon Township, Yangon, Myanmar http://mm.rajahtannasia.com
Contacts: Chester TohDirectorD +65 62320220chester.toh@rajahtann.comJainil Bhandari DirectorD +65 62320601jainil.bhandari@rajahtann.comRajah & Tann Asia is a network of legal practices based in Asia. | Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client. | This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update. |
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