SRS Legal Shots - East Timor: Entry into Force of the New Competition Act

SRS Legal’s Competition and European Union Department has published a new ‘Legal Shot’ on the entry into force of East Timor’s new Competition Act.

Law No. 1/2026, of 25 March, which establishes the country’s first legal regime for competition, will enter into force on 21 September 2026. The new framework introduces a mandatory merger control regime, prohibitions on restrictive agreements and abuses of dominant position, economic dependence and purchasing power, as well as market studies and fines of up to 10% of turnover.

The publication outlines the scope of the new regime, the role of the competition authority, yet to be created, and the transitional enforcement arrangements, by the Ministry of Commerce and the Central Bank, that will apply until the authority is established.

A practical overview for undertakings with current or prospective business in East Timor, highlighting the need to assess the impact of the new competition framework on their activities.

Download the PDF to read the full text.