The new law of Saudi Arabia’s General Authority for Competition allows the fight of monopolistic practices abroad by imposing fines of 10 percent of a firm’s total annual sales or three times its earnings.
GAC officially announced Sunday in Riyadh its new law by introducing it to the business sector through a campaign on rights and duties.
The Authority’s CEO, Mohammed al-Jasser, stressed the importance of competition in all sectors and in the Kingdom’s economy in line with the world economy’s standards. Such a fair competition is attractive for consumers and investors alike, and provides incentives for entrepreneurs, SMEs and national industries.
The new competition system will among others bolster a safe, intriguing and fair environment, take into consideration the rights of dealers, spur the growth of national industries, and attract investment to local markets, he added.
“The Saudi economy enjoys many features, is rich in natural resources, and has a flexible and strong trade sector, which has allowed it to overcome crises and challenges faced by many global economies,” Jasser continued.
He said the new system will encourage fair competition, combat monopoly and set the stage for a lawful competition that backs diversity and innovation.
Governor of GAC Abdulaziz Alzoom also lauded the new system in allowing the board of directors to reach settlements with violators.
Alzoom affirmed that the new law’s scope reaches all establishments in Saudi markets, as well as practices taking place outside Saudi Arabia in case they have a negative impact on fair competition inside the Kingdom.
Abdulaziz al-Obaid, director of legal affairs at GAC, said that the law diversifies the Authority’s monitoring mechanisms.
