Abstract

International investment law plays a critical role in attracting foreign capital, which is vital for global economic growth. However, investment agreements can conflict with competition laws, potentially creating an imbalance that may stifle market competition. There presents a significant challenge of maintaining an equitable application of international investment agreements while ensuring robust market competition. Specifically, it examines how investment protections may inadvertently lead to anti-competitive behaviors, which undermine fair market conditions within the host country. This article aims to investigate and propose mechanisms that can harmonize the need for foreign investment protection with the imperatives of competition law. The research draws on existing literature on International Investment law, competition law, and case studies of investment disputes. It also reviews various investment agreements, regulatory frameworks, and the role of oversight bodies in different jurisdictions. The transparency in investment agreements allows authorities to assess the impact of competition-related restrictions. Proportionality, through justifiable and temporary limitations, ensures that the invested company has a limited period to establish itself without undermining competition. Mechanisms such as sunset clauses and market share criteria further support the balance between investment protection and fair competition. Achieving a balance between foreign investor protection and competition law is crucial for promoting economic growth, safeguarding consumer interests, and attracting international investment. While differences in competition laws across countries pose challenges, sector-specific considerations and strong regulatory agencies are essential for effective oversight and enforcement. Ongoing dialogue and negotiations are necessary to develop a framework that supports both investment and competitive fairness in this evolving field. This balanced approach promises significant benefits, including enhanced market dynamics and a conducive environment for sustainable economic development.

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