The parliament issued a new competition law on March 17, 2022, which repeals the protection previously provided to exclusive agents. This step was hailed as a blow to monopolies in the country. However, LIMS explains that the government itself sets up the most debilitating monopolies in Lebanon. Sectors like electricity and telecom are prime examples of government-backed monopolies that stop any private investments in their respective markets. Those monopolies deliver a very bad service at an exorbitant cost asphyxiating the rest of the economy.

For example, the electricity monopoly, Electricité du Liban (EDL), has been increasing outages and power rationing; and contrary to popular belief, the cost of EDL-generated electricity is not cheaper than private generators when the technical and non-technical losses are taken into account. With unreliable and expensive electricity, telecommunication, and the internet, most productive sectors are in stagnation. Passing a law that cancels exclusive contracts will have little to no effect if the issue of public monopolies is left unaddressed.

Another limit to free competition is the government’s suggestion to increase tariffs on imports. High import tariffs are a roadblock that raises prices for local consumers and producers and encourages smuggling goods to Lebanon rather than going through legal routes. Furthermore, higher tariffs will put importing businesses out of work and reduce the number of traders to those capable of lowering the quality for consumers and/or offering high prices. LIMS recommended removing or minimalizing import tariffs to enhance competition, reduce prices, stimulate business and broaden consumption choices. Instead of increasing tariffs, the government should focus on cutting public spending. For instance, the government spends large sums on rent for public institutions knowing that the government owns more than 200 empty properties in Beirut alone. Also, the project of rebuilding the train tracks and system reemerged, driven by possible funding from the Spanish government. However, the cost of running the railways would be immense and will put extra pressure on the Lebanese budget, which is already being funded through an inflationary deficit.

• Spanish Grant Renews Train Dream In Lebanon, February 28, 2022: Majalla,  Article AR
• Government Continues To Waste Public Spending…The Recurring Rent Contracts Scandal, March 2, 2022: Sawt Beirut International, TV Interview AR
• Removing Exclusive Contracts Is A Trap That Will Not Decrease Prices, March 4, 2022: Lebanon On, Article AR
• Import Fees Reform, March 6, 2022, HERE: MTV, TV Interview AR
• War In Ukraine Destroys Electricity Plan, March 14, 2022: Al-Joumhouria, Article AR