Merger Control 2025

KUWAIT Trends and Developments Contributed by: Abdulwahab Sadeq, Adel Alasousi, Ali Boshehri and Barak AlAjeel, Meysan

mote the alignment of competition laws, sup - port cross-border co-operation and enhance the capacity of national authorities to address market distortions across the region. As part of this initiative, the CPA has engaged in joint training programmes, technical exchanges and collaborative enforcement efforts. These steps have positioned Kuwait as a contributing voice in shaping regional competition policy and enforcement priorities. Kuwait’s competition reforms, particularly those under the Competition Law, have been recog - nised by the UN’s Economic and Social Com - mission for Western Asia (the “UNESCWA”) and the ACN as a positive step towards modernising competition law enforcement in the region. In February 2025, Kuwait hosted the ACN’s annual conference, which focused on emerging antitrust risks in the digital economy, including algorithmic collusion and AI-driven price co- ordination. The conference provided a forum for regional dialogue on how regional authorities can respond to these developments while sup - porting innovation and fair competition. One of the key outcomes of the conference was the signing of a co-operation agreement between Kuwait’s CPA and Saudi Arabia’s Gen - eral Authority for Competition. The agreement provides for the exchange of expertise, joint studies and capacity building initiatives. It also specifically includes provisions for information sharing in cross-border merger reviews, marking a meaningful step towards formalised regional co-ordination in competition enforcement. While these efforts signal Kuwait’s commitment to regional alignment, further work is needed to

bring domestic enforcement practices in line with international standards. Conclusion and future outlook Kuwait’s merger control framework is among the most far-reaching in the GCC in terms of its scope. However, it also carries significant pro - cedural and substantive burdens. The Consti - tutional Court’s ruling presents a critical oppor - tunity for legislative refinement. Raising the notification thresholds, introducing proportional - ity into penalties and offering clear guidance on key concepts will enhance regulatory certainty and investor confidence. Looking ahead, the CPA is expected to continue its active enforcement strategy while potentially adjusting policy to balance regulatory oversight with facilitating commercial transactions. The CPA has indicated it is reviewing its internal pro - cedures following the Constitutional Court rul - ing, with potential reforms expected in late 2025. Businesses engaging in Kuwait-related transac - tions should conduct thorough merger control assessments early and consider pre-notification consultations in ambiguous cases. Businesses should consider the evolving nature of Kuwait’s competition regime when planning transactions and should build in sufficient time and flexibility to address potential regulatory changes. By aligning Kuwait’s competition regime with international standards and leveraging its region - al leadership (evidenced by the ACN-driven Saudi Arabia-Kuwait agreement and other ACN initiatives) the CPA can transform its regulatory rigour into a catalyst for MENA-wide investment, integration and competitive growth.

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