Saudi Arabia: Competition Law Aims to Combat Monopolistic Practices

Women shop at a mall in Jeddah, Saudi Arabia. (Getty Images)
Women shop at a mall in Jeddah, Saudi Arabia. (Getty Images)
TT
20

Saudi Arabia: Competition Law Aims to Combat Monopolistic Practices

Women shop at a mall in Jeddah, Saudi Arabia. (Getty Images)
Women shop at a mall in Jeddah, Saudi Arabia. (Getty Images)

The regulations of the Saudi Competition Law have revealed that it aims to protect and promote fair competition and combat monopolistic practices that affect legal competition and the consumer’s interest.

The regulations guarantee that the services and goods' prices conform to the market rules and free competition concepts.

The law bans the practices – including agreements and deals between establishments – whether written or oral, if the purpose behind them is to harm competition, especially in terms of determining prices of goods, services fees, conditions of selling and purchasing, limiting the inflow of services and products, etc.

The law also forbids any attitude that hinders the entry of an establishment into the market, pushes an establishment out of the market, blocks available products or services wholly or partially from a specific establishment. It also prevents dividing markets for the sake of selling or buying services and products.

Article six of the law includes prohibiting any establishment that dominates the market or part of it from abusing its power to breach or limit competition.

The law bars setting conditions on an establishment to abstain from dealing with another and suspend the selling of a service or product in return for an obligation or services that are not related to the original contract.

The law called on establishments wishing to join the economic concentration to notify the General Authority for Competition at least 90 days before completion in case the annual sales of the establishment surpasses a limit specified by the list.



Oil Prices Ease as Traders Assess US Tariffs and OPEC+ Output Boost

A drone view shows a portion of the crude oil tank farm in Midland, Texas, US June 11, 2025. REUTERS/Eli Hartman/File Photo
A drone view shows a portion of the crude oil tank farm in Midland, Texas, US June 11, 2025. REUTERS/Eli Hartman/File Photo
TT
20

Oil Prices Ease as Traders Assess US Tariffs and OPEC+ Output Boost

A drone view shows a portion of the crude oil tank farm in Midland, Texas, US June 11, 2025. REUTERS/Eli Hartman/File Photo
A drone view shows a portion of the crude oil tank farm in Midland, Texas, US June 11, 2025. REUTERS/Eli Hartman/File Photo

Oil prices retreated on Tuesday, having climbed almost 2% in the previous session, as investors assessed the latest developments on US tariffs and a higher than expected increase to OPEC+ output for August.

Brent crude futures fell 12 cents, or about 0.2%, to $69.46 a barrel by 1043 GMT. US West Texas Intermediate crude lost 25 cents, or about 0.4%, to $67.68.

US President Donald Trump began telling trade partners on Monday that sharply higher US tariffs will start on August 1, though he later said that deadline was not 100% firm.

Trump's tariffs have raised uncertainty across the market and concerns that they could have a negative effect on the global economy and oil demand.

While prices seem to be pressured by OPEC+ unwinding its voluntary output cuts, tightness in middle distillates and Houthi attacks on cargo ships are supporting the market, said Rystad analyst Janiv Shah.

On Saturday the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and its allies agreed to raise production by 548,000 barrels per day (bpd) in August, exceeding the 411,000 bpd increases in the previous three months.

Investors were bullish heading into the peak summer demand period in the United States, however, with data from the US Commodity Futures Trading Commission on Monday showing money managers raised their net-long futures and options positions in crude oil contracts in the week to July 1.

Once oil demand declines seasonally, the increase in OPEC+ exports will hit the market, raising downside risks to prices, HSBC analysts said in a note.

Analysts at Commerzbank expect the price of Brent to fall to $65 a barrel on the emerging oversupply in the autumn months.

The decision by OPEC+ removes nearly all of the 2.2 million bpd of voluntary cuts made by the group since 2023.

The producer group is set to approve an increase of about 550,000 bpd for September when it meets on August 3, according sources told Reuters, which would unwind all of the cuts.