Competition Law at Saudi Arabia
Here’s a clear summary of Competition Law in Saudi Arabia:
⚖️ Legal Framework
Competition law in Saudi Arabia is governed by the Competition Law issued by Royal Decree No. M/25 dated 23/6/2019 (the “Competition Law”).
The law aims to promote fair competition, protect consumers, and prevent monopolistic practices.
It aligns with international best practices and the country’s Vision 2030 economic reform plan.
📜 Key Provisions
Anticompetitive Practices
Prohibits agreements or practices that restrict competition, including price-fixing, market-sharing, bid-rigging, and abuse of dominance.
Prohibits monopolistic practices that negatively affect competition or consumer welfare.
Merger Control
Requires prior notification and approval of mergers and acquisitions that meet specified thresholds (based on turnover and market share).
The Saudi Authority for Competition (SAC) reviews transactions to prevent harm to competition.
Abuse of Dominance
Prohibits dominant firms from abusing their position by engaging in unfair pricing, exclusive dealing, or other exclusionary tactics.
Penalties and Enforcement
Violations can lead to fines of up to 5 million SAR per violation or up to 10% of the company’s annual revenue.
Repeat offenders may face increased penalties or other corrective measures.
🏢 Enforcement Authority
The Saudi Authority for Competition (SAC) is the independent body responsible for:
Investigating anti-competitive practices.
Approving or rejecting mergers.
Imposing fines and sanctions.
Conducting advocacy and promoting competition awareness.
🔍 Recent Trends
SAC has been active in reviewing mergers, especially in sectors like telecommunications, retail, and energy.
Increased focus on tackling cartels and promoting competitive market entry.
SAC also issues guidelines to help businesses comply with competition rules.
RELATED Blog
0 comments