UAE Competition Department publishes market definition guidelines for merger control

The Competition Department of the UAE Ministry of Economy & Tourism has published Guidelines on Relevant Market Definition, explaining the analytical framework applied when defining relevant markets under UAE competition law. The Guidelines are particularly significant for merger control, where accurate market definition determines whether a mandatory filing obligation exists. Under UAE rules, a transaction is notifiable if either the parties' combined annual turnover in the relevant market exceeds AED 300 million or their combined market share exceeds 40%. The Guidelines clarify that market definition is flexible and evidence-based, varying depending on the nature of the matter. The Competition Department may consider market studies, consultations with regulators, public surveys, sector-specific studies, and international comparative experience. The relevant product market comprises goods or services consumers consider interchangeable, assessed primarily through demand-side substitutability using tools such as the SSNIP test and Price Elasticity of Demand test. For digital markets, the Guidelines introduce the SSNDQ test. The relevant geographic market may be defined at emirate level if effects are confined to one emirate, at national level if operations span multiple emirates, or at regional/international level where conduct outside the UAE affects domestic competition. The Guidelines do not replace Federal Decree-Law No. 36 of 2023 on Competition or Cabinet Resolution No. 3 of 2025 but rather explain key analytical stages and methodologies.