Moroccan Competition Council: Powers in 2026 (Explained)

In the rapidly evolving economic landscape of 2026, the Moroccan market has become a hub for international investment and domestic innovation. However, with increased economic activity comes the risk of anti-competitive behavior, price-fixing, and the abuse of dominant market positions. Imagine a scenario where a small tech startup in Casablanca finds itself unable to compete because three major industry players have secretly agreed to fix prices, or a foreign investor looking to acquire a Moroccan firm suddenly faces a "gun-jumping" fine because they failed to notify the authorities. These are not just theoretical risks; they are the daily focus of the Competition Council (Conseil de la Concurrence).

As we navigate 2026, understanding the robust powers of this institution is critical for any business owner, legal professional, or investor operating within the Kingdom. This guide provides a comprehensive analysis of the Council’s investigative authority, the stringent penalties it can impose under Law No. 104-12, and the procedural safeguards that ensure a fair and competitive marketplace. You will learn how the Council interacts with other regulators, such as Bank Al-Maghrib, and what the 2026 legal framework means for your business compliance.

1. Legal Foundation: The Pillars of Market Regulation

The authority of the Moroccan Competition Council is not arbitrary; it is rooted in a sophisticated legislative framework designed to align Morocco with international best practices, particularly those of the European Union and the OECD.

The Primary Statutes

The bedrock of competition regulation in Morocco consists of two complementary laws:

1. Law No. 104-12 on the Freedom of Prices and Competition: This law governs the behavior of economic actors. It defines what constitutes a "concentration," an "agreement," or an "abuse of dominance."
2. Law No. 20-13 on the Competition Council: This law establishes the Council as an independent constitutional institution, granting it the legal personality and financial autonomy necessary to perform its duties without political interference.

Scope of Application

According to Article 1 of Law No. 104-12, the jurisdiction of the Competition Council is expansive. It applies to:

• All natural or legal persons, regardless of whether they have a registered office in Morocco, provided their actions affect competition within the Moroccan market.
• All activities involving production, distribution, and services.
• Public legal entities (state-owned enterprises) when they act as economic operators rather than exercising public authority.
• Export agreements if they have a direct impact on the domestic Moroccan market.

In 2026, this "extraterritorial" reach is more relevant than ever. If a multinational corporation engages in a merger in Dubai or Paris that impacts the supply chain in Tangier, the Moroccan Competition Council has the legal right—and the digital tools—to intervene.

Institutional Synergy

A unique feature of the Moroccan system is the mandatory consultation between regulators. For instance, Article 50 of the Law relating to Credit Institutions (Reference 1) stipulates that if Bank Al-Maghrib (the Central Bank) identifies a potential breach of competition law during a merger of two banks, it must suspend the application and seek the opinion of the Competition Council. Conversely, under Article 49 of the same law, if the Council initiates an investigation into a credit institution, it must first consult Bank Al-Maghrib. This ensures that financial stability and market competition are balanced.

2. Practical Guide: Navigating Investigations and Mergers

Operating a business in 2026 requires a proactive approach to compliance. Whether you are planning a merger or responding to an inquiry, the procedures are strictly timed and documented.

Merger Control Procedures

Economic concentrations (mergers, acquisitions, or joint ventures) must be notified to the Council if they meet specific turnover thresholds.

• Notification: Parties must submit a detailed file including market share analysis and economic impact assessments.
• Phase I (The 60-Day Review): The Council has 60 days to approve the transaction or move to a more in-depth investigation.
• Phase II (The 90-Day Review): If the Council fears the merger will significantly lessen competition, it opens an extended 90-day window for a deeper audit.

Investigative Powers: The "Dawn Raid"

The Council’s investigators have powers similar to judicial police. Under the 2026 enforcement guidelines, they can:

• Enter business premises and vehicles.
• Seize documents and digital data.
• Request immediate access to encrypted files and cloud storage.
• Interview any staff member on-site.

Required Documentation for Compliance

To avoid delays or penalties, companies should maintain a "Competition Compliance Folder" containing:

• Detailed records of market shares in all active sectors.
• Copies of all distribution and franchise agreements.
• A clear "Leniency Protocol" (explained below).
• Proof of internal training on Moroccan Commercial Law.

Public Procurement and Tenders

In 2026, the Council pays close attention to "bid-rigging" in public tenders. According to Article 70 of Decree No. 2.22.431 (Reference 6), the "Consultation System" (Règlement de Consultation) must define the criteria for selecting the most economically advantageous offer. If the Council suspects that competitors have coordinated their bids to inflate prices, it can invalidate the tender and impose heavy fines on the participating companies. For more on this, see our guide on winning public tenders in Morocco.

3. Key Provisions Explained: Understanding the Rules

To stay compliant, businesses must understand the three "mortal sins" of Moroccan competition law.

Anti-Competitive Agreements (Cartels)

Article 6 of Law No. 104-12 prohibits all concerted actions, conventions, or tacit agreements that aim to restrict or distort competition. This includes:

• Price Fixing: Agreeing with competitors on minimum or maximum prices.
• Market Sharing: Dividing geographic zones or customer bases between competitors.
• Limiting Production: Artificially restricting supply to drive up demand and prices.

Abuse of Dominant Position

Being "big" is not illegal in Morocco; however, using that size to crush smaller competitors is. Article 7 prohibits a company from using its dominant position to impose unfair sale conditions, refuse to sell to certain clients without valid reason, or engage in predatory pricing (selling below cost to drive others out of business).

Abuse of Economic Dependency

Unique to Moroccan and French-inspired law, Article 8 prohibits a company from abusing the fact that a supplier or client is "economically dependent" on them. If a large supermarket chain suddenly changes terms for a small farmer who has no other outlet for their goods, this may constitute an abuse of economic dependency.

The Leniency Program (Clemency)

As mentioned in Reference 7, the law provides a "carrot" to accompany the "stick." A company that is part of a cartel can receive total or partial immunity from fines if it is the first to come forward and provide evidence to the Council. In 2026, the "Rapporteur" of the Council prepares these exemption proposals, which must be communicated to the government representative at least three weeks before the final hearing.

4. Penalties and Sanctions: The Cost of Non-Compliance

The Competition Council is one of the most powerful administrative bodies in Morocco because of its ability to impose devastating financial penalties.

Financial Fines

Under Article 43 of Law No. 104-12, the Council can impose fines of up to:

• 10% of the worldwide turnover (excluding tax) for the company's highest-grossing year.
• If the entity is not a company (e.g., a professional association), the fine can reach 10 million Dirhams.

Gun-Jumping Penalties

"Gun-jumping" occurs when companies finalize a merger before receiving the Council's approval. In 2026, the Council has increased its surveillance of such transactions. Failing to notify a merger can result in a fine of up to 5% of the turnover achieved in Morocco during the last fiscal year.

Daily Penalty Payments (Astreintes)

If the Council orders a company to stop a certain practice or divest an asset, and the company fails to comply, the Council can impose a daily fine (astreinte) to compel obedience. This ensures that the Council’s decisions are not just "paper tigers" but are actively enforced.

Settlement (Conciliation)

As noted in Reference 5, the law allows for a settlement process. If a company does not contest the grievances, it can enter into a "transaction" or settlement with the government authority. The fine in these cases is often capped at 500,000 Dirhams or 5% of the turnover, whichever is lower, provided the company commits to changing its behavior.

5. Common Mistakes & How to Avoid Them

Even well-intentioned businesses can find themselves in the crosshairs of the Competition Council. Here are the most common pitfalls observed in 2026:

1. Informal "Coffee Shop" Agreements

Many Moroccan business owners believe that an informal verbal agreement with a competitor over lunch is not "legal" and therefore not punishable. This is a dangerous misconception. The Council uses "serious, precise, and concordant evidence" to prove tacit agreements. Exchange of sensitive information (like future pricing or stock levels) is enough to trigger a violation of Article 6.

• Solution: Implement a strict communication policy. Never discuss pricing, margins, or future strategy with competitors.

2. Ignoring the "Local Dimension"

Some companies believe that if their turnover is low, they are exempt. However, as Reference 5 indicates, if practices affect a "market of local dimension" and the combined turnover of the parties exceeds 50 million Dirhams, the Council can intervene.

• Solution: Always perform a "competition audit" before any local acquisition or price adjustment.

3. Failure to Cooperate During Inquiries

Obstructing an investigation is a separate offense. Hiding files, deleting emails during a dawn raid, or providing misleading information can lead to criminal charges and increased administrative fines.

• Solution: Designate a "Competition Response Team" within your company. Ensure they know how to facilitate an inspection while protecting data privacy rights.

4. Overlooking Public Procurement Rules

Companies often forget that the Competition Council works closely with the Treasury to monitor public tenders. If your technical bid contains identical phrasing or "typos" as your competitor’s bid, the Council will flag this as potential collusion under Article 70 of the Public Procurement Decree.

• Solution: Ensure your bidding department operates in total isolation from other market players.

6. Conclusion with Key Takeaways

The Moroccan Competition Council has matured into a formidable regulator. By 2026, its integration of digital forensics and its close cooperation with institutions like Bank Al-Maghrib have made market surveillance nearly constant. For businesses, the message is clear: compliance is no longer optional; it is a prerequisite for survival.

Whether you are navigating a complex merger or simply setting your prices for the next quarter, you must act within the boundaries of Law No. 104-12. The costs of failure—ranging from 10% of global turnover to criminal liability—are simply too high to ignore.

Summary of Key Takeaways

• Universal Reach: The law applies to everyone affecting the Moroccan market, even companies based abroad.
• Strict Thresholds: Mergers must be notified if they meet turnover requirements; "gun-jumping" is heavily penalized.
• Investigation Power: The Council can conduct dawn raids and seize digital evidence without prior notice.
• Leniency Exists: If you are involved in a cartel, being the first to "confess" can save your company from bankruptcy-level fines.
• Inter-Agency Cooperation: The Council and the Central Bank share information to ensure the integrity of the financial sector.

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