Saudi: Criminal cases filed against 64 automobile establishments for Competition Law violations

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The violators included automobile agents, distributors, and car showrooms for violations such as agreeing to fix prices and dividing markets according to geographic regions among others, which led to reducing competition and affecting the interests of consumers

Staff Writer, Saudi Gazette

January 4, 2024

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RIYADH — The Board of Directors of the General Authority for Competition (GAC) has given the go ahead to file charges against 79 establishments for violating the Competition Law and its executive regulations. The board decided to initiate criminal cases against 64 establishments and study settlement requests from the remaining 15 entities.

The violators included automobile agents, distributors, and car showrooms for violations such as agreeing to fix prices and dividing markets according to geographic regions among others, which led to reducing competition and affecting the interests of consumers.

The 85th session of the Board of Directors of GAC was chaired on Wednesday by Dr. Ahmed bin Abdulkarim Alkholifey, chairman of the board. The board reviewed the results of the study and investigation in the education and industry sectors, and approved taking the necessary measures against six establishments and assigning them to correct their status and adhere to the Competition Law and its executive regulations. They also need to give an undertaking not to violate the provisions of the Competition Law and its executive regulations in its contracts.

The board reviewed the results of the study and investigation with two establishments operating in the sector of providing cold and hot drinks and pastries, and decided to study the settlement requests submitted by these firms. It also reviewed the results of the study and investigation with 10 establishments operating in the field of contracting, and decided to dismiss the cases against them for lack of jurisdiction and referred to the competent authority to complete what is necessary according to its jurisdiction.

The board also reviewed the results of the study and investigation with an establishment operating in the waste collection and transportation sector, and decided to close the case because it was not found to be in violation of the Competition Law and its executive regulations. The results of the study and investigation were also reviewed with five establishments operating in the retail sales and electronic devices sector, and it decided to close the case after it was not found to be in violation of the Competition Law and its executive regulations.

The board agreed to take procedures to investigate, collect evidence, and investigate the possibility of an establishment operating in the cloud restaurant sector and related parties violating any of the articles of the Competition Law and its executive regulations. The board reviewed the progress of the procedures regarding the settlement with an establishment operating in the automobile sector, and in light of that, it issued a mandate to the chairman of the Executive Committee of the authority to accept the settlement with the facility, correct its status, and announce the settlement to the public once it is approved to enhance the principle of transparency.

It is noteworthy that GAC is a government body responsible for protecting and promoting fair competition and combating anti competitive and monopolistic practices.