In a recent ruling by the General Authority for Competition (GAC), two prominent Saudi companies, Panda Retail Co. and Doorstep for Telecommunications and IT, found themselves in hot water for flouting the Saudi Competition Law.
The penalty, totaling SR800,000 (approximately $213,000), was levied against the companies by the Committee for Resolution of Competition Law Violations, a branch of GAC, for breaching Article 7 of the Competition Law, as revealed in an official statement released on Sunday.
Each company was fined SR400,000 (around $106,600) and mandated to bear the cost of publishing the penalty report in local media outlets.
The GAC’s decision followed a meticulous process involving investigation, evidence gathering, and adjudication after the violation was brought to their attention. The Committee for Adjudication of Competition Law Violations oversaw the collection of evidence and conducted thorough investigations.
The investigation unearthed that both Panda Retail Co. and Doorstep for Telecommunications and IT had neglected to inform GAC of an acquisition deal as required by Article 7 of the Competition Law. This article stipulates that companies engaged in economic concentration activities must notify the authority at least 90 days prior to completion if their annual sales exceed a specified threshold.
The punitive measures underscored GAC’s commitment to upholding fair competition, combating monopolistic behaviors, and ensuring procedural transparency in the market landscape. The authority emphasized the importance of adherence to the Competition Law and its regulations, promoting fair competition that fosters consumer choice and drives market growth and efficiency within a framework of justice and transparency.
As part of its outreach efforts, GAC urged all establishments to consult the compliance guide available on its website, reinforcing the necessity for corporate accountability and regulatory compliance in the competitive arena.
