The General Authority for Competition has revealed a violation by Nahdi Medical Company and Al-Dawaa Medical Services Company after it was proven that they conspired on prices, in a case that confirms the reality of competition in the monopolized pharmacy market.
The two companies together hold about 52% of the market share, highlighting the importance of the Authority’s intervention in protecting competition and preventing the exploitation of market power.
The Authority imposed a fine of up to 3.8 million riyals on Nahdi Medical Company, while a fine of 1.8 million riyals was imposed on Al-Dawaa Medical Services Company, for violating the provisions of the Competition Law related to price-fixing, a practice considered one of the most serious legally prohibited acts.
The two companies control the largest pharmacy networks in the Kingdom, with Nahdi owning 1,218 pharmacies, while the number of Al-Dawaa pharmacies is approximately 1,000. Competition in the pharmacy market is supposed to be based on providing better prices and wider choices for consumers.
According to financial data, the combined revenues of the two companies reached approximately 12.6 billion riyals by the end of the last quarter.
United News Network – UNN Arabic
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