Fines totaling 37 million riyals imposed on 13 Saudi companies for price manipulation
In a decisive move aimed at protecting markets and promoting commercial integrity, the General Authority for Competition issued strict penalties against 13 companies and commercial establishments after investigations proved their involvement in monopolistic practices, specifically price-fixing. The total fines imposed amounted to SAR 36,918,885, a strong indication of the regulatory authorities' commitment to combating any manipulation that harms consumers and the national economy.
Details of violations and targeted sectors
The authority revealed in its detailed statement that the violations were not limited to a single sector, but rather encompassed a wide range of vital activities that directly impact citizens' lives. The list included the recycling and reuse of municipal waste, the retail sector for basic food items such as poultry and eggs, the baby care supplies and products sector, advertising agencies, and quarry operations.
Among the most prominent penalties announced were fines of 10 million riyals against the Waste Collection and Recycling Company (WASCO) and 5.45 million riyals against the Arab Recycling Company Limited. The penalties also extended to major companies in the retail and medical supplies sectors, such as the Saudi Marketing Company (Farm Supermarkets), Tamimi Markets Company, and the United Company for Pharmaceuticals and Medical Supplies Limited, in addition to companies operating in the poultry sector, such as Makkah Modern Refrigeration and Al-Fahd Medical.
Enhancing the investment environment and transparency
This measure comes amidst major economic transformations in Saudi Arabia, where protecting fair competition is a cornerstone for attracting foreign and domestic investment. Combating implicit price-fixing agreements not only protects consumers from unjustified price hikes but also opens the door for startups and entrepreneurs to enter the market and compete based on quality and fair pricing, thereby enhancing overall economic efficiency.
In the advertising sector specifically, the authority imposed fines exceeding 14 million riyals on three companies, reflecting the scale of violations in this vital sector. Penalties also extended to two quarrying operations, underscoring the comprehensive nature of oversight across all industrial and commercial activities.
Legal basis and general deterrence
The Authority confirmed that publishing the names of violating companies and publicly shaming them is based on Article 19 of the Competition Law issued by Royal Decree No. (M/75). This measure aims to achieve general and specific deterrence and to reinforce the principle of transparency in commercial transactions. This step sends a clear message to all establishments operating in the Saudi market that practices that undermine fair competition will not go unpunished.
The Authority concluded its statement by emphasizing its continued monitoring and surveillance of the markets, and its commitment to taking all strict regulatory measures against any entity that seeks to harm competition or exploit consumers, calling on all establishments to fully comply with the provisions of the system and its implementing regulations to ensure a healthy and sustainable business environment.
