The government of Timor-Leste is pleased to announce the adoption of Timor-Leste’s first competition law.

The adoption of the law reflects Timor-Leste’s commitment to ASEAN’s frameworks and priorities, as its newest member. It also demonstrates Timor-Leste’s commitment to its economic integration with ASEAN, the region, the broader international community, and its institutions, including the World Trade Organisation.

Competition is essential for driving innovation, improving productivity, and ensuring that companies provide the goods and services that consumers demand at the lowest cost.

The new law aims to promote modern, competitive markets that strengthen the national economy and create a dynamic and sustainable environment that fosters trade and economic development for the benefit of consumers.

The law applies to the economic activities of the public and private sectors in Timor-Leste. It regulates anti-competitive agreements, abuse of dominance, abuse of economic dependence, the abuse of buyer power, and mergers that may restrict competition.

The law will be enforced by a new competition agency, which will shortly be established. The agency will have the power to investigate and sanction breaches of the law. Pending its establishment, the Ministry of Commerce and Industry will be responsible for implementing the new law.

The adoption of the law is a significant milestone in Timor-Leste’s economic development and its integration with ASEAN and the world. The new law will provide a platform for greater engagement on competition policy, including through knowledge sharing, involvement with international competition institutions, capacity building, multilateral co-operation, training, and advocacy.

The government acknowledges the technical assistance of UNCTAD and the support of other partner organisations.

The new competition law (Law No. 1/2026) will commence on 21 September 2026