The Activities of Cooperatives Societies and Consumer Cooperative Societies in the light of Competition

Kuwait gave light special attention to the cooperative movement, allowing the forming of a union that includes consumer cooperative societies. The aim of the former is to ensure essential products at optimum prices, whilst specifying and unifying prices between the cooperative societies in order to protect the consumer. On the other hand, Kuwait legislation also ensured the competitive spirit between merchants and limited activities that may affect fair competition, this ensures that no merchant can dominate a specific market. This research studies whether these cooperative societies, with their aim to specify and unify prices are considered an activity that has a negative impact on competition and forbidden according to law no. 72 of 2020. This research follows an inductive analytical method to answer the question. It was found that cooperative societies are targeted by this law, and that the cooperative agreement to specify and unify prices is considered a forbidden agreement according to the aforementioned law. Therefore, there is a conflict between the aim to protect the consumer according to the cooperation and the aim to ensure fair competition. It is recommended that the legislator be involved to look into this conflict in the law in order to resolve any issues that may result in the practical field.