An official at the Saudi General Authority for Competition (GAC) has announced that the executive regulation of the new competition law will come into effect on September 25.
Director of Legal Affairs at GAC Abdulaziz al-Obaid said the new Saudi competition law has fostered flexibility to boost the economy and support business enterprises.
He pointed out that the law, comprising 91 articles and 11 chapters, extended exemptions and developed the procedures of mergers and acquisitions by examining mergers to allay fears of other competitors.
Obaid explained that the system will include all establishments, businessmen, and persons who do agricultural, industrial or service projects in the Saudi market, with the exception of public institutions that are wholly owned by the state or institutions authorized to provide goods and services in a specific field.
His remarks were made during a workshop organized bu GAC in the Chamber of Commerce and Industry in the Eastern Province (Asharqia Chamber) to introduce the new competition law amid wide business men's participation.
He pointed out that the draft law includes a chapter on the rules of reconciliation and settlement, a procedure applied for the first time in the new law.
The GAC shall receive a request for reconciliation from the establishment, which initiates evidence to disclose or be detectable partners in violations of the law provisions.
It shall also receive a settlement request from establishments that violate the law provisions.
The GAC board has the right to establish one or more permanent or temporary committees to consider applications for reconciliation or settlement and compensation for the victims.
The new law entitles the GAC to discuss establishments and requests to be provided with the necessary reports and data.
The new competition law seeks to bolster the economy’s efficiency, reduce the adverse effects on the economic and social system, create an attractive competitive environment for investments, provide a coherent, continuous and balanced development of economic activities, achieve fair prices and quality, in addition to enabling the private sector to engage in various economic activities.
