The General Authority for Competition (GAC) in Saudi Arabia has imposed fines totaling SR800,000 ($213,000) on two companies for violating the Saudi Competition Law.
The decision was made after Panda Retail Co. and Doorstep for Telecommunications and IT were fined for violating Article 7 of the Competition Law by the GAC's Committee for Resolution of Competition Law Violations. Companies must publish the punishment report in the local media at their own expense, in addition to being fined SR400,000 ($106.6,000).
The enforcement action follows the initiation of procedures for investigation and evidence gathering by the GAC's Board of Directors upon being notified of the violations against the two companies. Subsequently, the authority referred the case to the Committee for Adjudication of Competition Law Violations, which conducted thorough investigations.
By completing the acquisition agreement without informing the GAC, the two corporations violated Article 7 of the Competition Law, according to these investigations. In order to comply with Article 7, enterprises whose yearly sales are expected to exceed a regulatoryly-determined threshold must notify the authority at least 90 days prior to the completion of the economic concentration procedure.
The penalties levied by the GAC underscore its commitment to enforcing the Competition Law, protecting fair competition, combating monopolistic practices, and ensuring procedural transparency. The authority emphasized the importance of compliance with the Competition Law and its executive regulations by all entities. It urged businesses to operate in accordance with the principles of fair competition, which foster consumer choice and support market growth and efficiency while upholding justice and transparency.
Furthermore, the GAC encouraged establishments to consult the compliance guide available on its website for guidance on adhering to competition regulations. This comprehensive approach aims to promote a competitive business environment that benefits consumers and contributes to the overall economic development of Saudi Arabia.
