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$4 Million Fines Imposed on Six Saudi Companies for Competition Law Violations

The penalties are based on its mission and powers to enforce the Competition Law: General Authority for Competition

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Staff Writer, TLR

Published on June 6, 2024, 10:15:36

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saudi fines six companies, competition law

The General Authority for Competition announced the imposition of fines amounting to SR14.89 million on six companies and establishments operating in the car and goods transport sector. The action was taken due to violations of the Competition Law, following their agreement to increase charges for vehicle transportation, the authority stated in a Wednesday announcement.

The decision included imposing fines as follows:

  • SR5 million on MB International Company
  • SR5 million on RT Company for Transporting Goods
  • SR1.9 million on N.B.A. Corporation
  • SR1.5 million on A.A.A.H. Company and T. Transportation Company
  • SR790,000 on S.K.S. Company
  • SR700,000 on DDN Company

The committee’s decision became final following the issuance of final rulings by the competent court, which rejected the establishments’ objections to the committee’s decision. The authority’s Board of Directors authorised an investigation into the violations committed by these firms. The violations were subsequently referred to the Committee for Adjudication of Competition Law Violations, which issued its decision to impose punitive measures on the involved companies and entities.

Investigations revealed that the firms violated Paragraph 1 of Article 4 of the Competition Law. This provision prohibits practices, agreements, or contracts between competing establishments, or those likely to be competitors, whether the contracts are written or oral, explicit or implicit.

These practices, agreements, or contracts aim to restrict trade or disrupt competition between establishments. Specifically, the law mentions violations involving controlling the prices of goods and services prepared for sale by increasing, decreasing, stabilising, or in any other way that harms legitimate competition.

The authority revealed that the penalties are based on its mission and powers to enforce the Competition Law, as well as its role in protecting and encouraging fair competition and combating monopolistic practices.
This action also aims to uphold the principle of transparency in procedures following violations of the Competition Law and its executive regulations by agreeing to raise prices for transporting vehicles, which is prohibited under Paragraph 1 of Article 5 of the Competition Law.

The General Authority for Competition called on all establishments to adhere to the Competition Law and its executive regulations and to comply with the competition guidelines. The authority also urged all establishments to review the guidelines on ways to comply with the Competition Law through the “Compliance Portal” available at: Compliance Portal via the following link

The authority aims to adopt competition-stimulating policies, combat illegal monopolistic practices, improve market performance, support consumer and business sector confidence, contribute to investment flow, and enhance sustainable development.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

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