Key Reforms to Jordan’s Competition and Merger Control Regime

On 23 April 2026, Jordan enacted Law No. 8 of 2026 (the “Amended Competition Law”), which will enter into force on 23 May 2026. The Amended Competition Law introduces significant reforms to Competition Law No. 33 of 2004 (the “Competition Law”), building on earlier amendments in 2011 and 2023.

The reforms materially strengthen Jordan’s competition framework by expanding the scope of prohibited conduct, revising merger control rules, and reinforcing enforcement powers.

Key Reforms

The Amended Competition Law introduces several key changes.

Elimination of the De Minimis Exception

The Amended Competition Law removes the previous exemption for agreements considered to have a “weak effect” on competition. All anti-competitive agreements are now prohibited, irrespective of market share or scale.

Broadened Definition of Economic Concentration

The definition of economic concentration has been significantly expanded. The law moves away from a formal ownership-based test and adopts a broader “effective influence” standard.

A transaction may now constitute an economic concentration where it results in direct or indirect control on a permanent basis. This includes mergers, acquisitions, joint ventures, and any arrangement that enables one undertaking to influence the strategic or operational decisions of another. The change captures a wider range of transactions, including those not involving formal share transfers.

Turnover Threshold for Merger Control

The previous dual threshold based on market share and revenue has been replaced with a simplified revenue-based test. Notification is now triggered solely by annual revenues, with thresholds to be set by the Council of Ministers.

This removes the 40 percent market share threshold and is intended to enhance legal certainty and align Jordan’s regime more closely with international practice.

Two-Phase Merger Review Process

Article 10 introduces a structured two-phase merger review process. The Competition Protection Department (the “Department”) conducts an initial Phase One review within 30 working days and may either approve the transaction or refer it for a more detailed Phase Two investigation. Within the notification period, parties may also engage in preliminary consultations with the Department to determine whether a transaction is notifiable and to obtain procedural guidance, thereby reducing uncertainty in borderline cases. Where a transaction proceeds to Phase Two, it is subject to publication and an invitation for third-party comments.

Enhanced Enforcement

The enforcement framework has been significantly tightened. Transactions implemented without approval, prior to clearance, or following revocation are deemed void. Authorities may require restoration of the pre-transaction position.

Administrative fines range from JOD 10,000 to JOD 50,000. Failure to comply may result in referral to the Public Prosecutor.

Increased Penalties for Repeat Violations

Article 21 introduces higher fines ranging from JOD 40,000 to JOD 90,000 for repeated breaches of merger control requirements, or for failure to comply with decisions issued by the competent authorities. This reflects a clear escalation in enforcement severity.

How can we help?

The amendments introduce a stricter and more complex merger control regime, with enhanced enforcement risk and a requirement to obtain prior approval before completing notifiable transactions.

For further assistance and detailed advice on how these amendments may impact your business, please feel free to contact the key contacts.