The General Authority for Competition (GAC) has monitored (5) diverse cases involving violations of the Competition Law by several entities through price-fixing, which is explicitly prohibited by Article (5) of the Competition Law issued by Royal Decree No. (M/75) dated 29/06/1440 AH. This action came as part of the Authority’s role in protecting and encouraging fair competition and combating monopolistic practices, in accordance with the principle of procedural transparency.
After diagnosing the cases through a series of investigations and inquiries, the Authority’s Board of Directors issued its decisions to initiate criminal proceedings against the entities violating the Competition Law. These cases were referred to the Committee for Resolution of Competition Law Violations, except for cases resolved through settlements based on the provisions of Article (23) of the Law. Accordingly, the Committee issued (5) decisions to penalize (13) entities after proving their violation of Paragraph (1) of Article (5) of the aforementioned Competition Law.
The application of Article (5) of the Competition Law is evident in the prior prohibition of monopolistic practices, including agreements or contracts between entities—whether written or oral, explicit or implicit—if the objective or the resulting impact is the disruption of competition. Negative repercussions include fixing or suggesting prices, as well as setting conditions for sale, purchase, or equivalent terms. Prohibited agreements also include any understanding between entities that could lead to price increases or the restriction of business volume.
The decisions issued by the Committee for Resolution of Violations included total financial fines estimated at (36,918,885) Saudi Riyals, distributed among the violating entities. All decisions have acquired final status after undergoing the necessary legal procedures.
In conclusion, the General Authority for Competition emphasizes the importance of all entities complying with the Competition Law and its Implementing Regulations, while working effectively to serve the desired goals of legitimate competition values. This commitment encourages consumer choices and supports efficient market growth within a framework based on the principles of justice and transparency in the economic process.
The Authority also invites all entities to review the guiding instructions regarding means of compliance with the Competition Law, which are available in detail on the official Compliance Portal.
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