The Impact of Implementing Jordanian Competition law on Stimulating Foreign Investment: An Analytical Study

Abstract

This article examines the significance of competition laws and their impact on promoting foreign investment in countries that have adopted competition laws and policies, particularly in Jordan. This article aims to demonstrate the importance of applying competition law by highlighting its objectives, policies, and role in opening commercial opportunities, as well as how it reduces barriers to entering markets for both local and foreign investors. It also discussed the importance of competitive markets and their role in research and development, which helps in achieving competitive prices, resulting in higher consumer welfare.

This study aims to assess the importance of enforcing competition law effectively and its impact on promoting foreign investment. To achieve this, the article employs descriptive, analytical, and comparative methodologies. The article reviews and analyses Jordanian, regional and international related competition legal provisions. It also consulted relevant case law if it existed. Settled and established theories and scholarly work have been consulted in order to achieve the objective of this article.

The article reveals several key findings; the most important were that the actual application of competition law in Jordan is weak and that the effort and means to enhance the application of competition law are insufficient. Furthermore, the latest amendment of the Jordanian Competition Law in 2023 did not tackle any issue that may improve the enforcement of competition law. Also, the governing bodies did not campaign to raise awareness about the importance of complying with competition law.

To address the issues in the Jordanian competition regime, this article recommends establishing an independent competition authority in accordance with internationally recognised standards. The article also suggested the establishment of an Arab Competition Authority under the umbrella of the Arab League. In addition, international and regional cooperation is vital for achieving the most effective enforcement due to the scale of the most serious competition law infringements.