Article 22 of the Saudi Communications and Information Technology Law
المادة 22 من نظام الاتصالات وتقنية المعلومات · الفصل السادس: المنافسة
The article prohibits service providers from agreeing on practices that make one of them dominant or that limit, prevent or reduce the effectiveness of competition, and makes the provisions of such agreements and decisions void.
Official text (Arabic)
This article has not been amended since the law was issued.
يُحظر على مقدمي الخدمة الاتفاق بينهم لإجراء ممارسات من شأنها جعل مقدم خدمة مسيطراً على سوق اتصالات ذي صلة أو جزء منه، أو الحدُّ من المنافسة أو منعها أو التقليل من فعاليتها، وتكون الأحكام الواردة في هذا الشأن في أي اتفاقات أو قرارات باطلةً. وتحدد اللائحة القرارات والممارسات التي من شأنها الحد من المنافسة أو منعها أو التقليل من فعاليتها والإجراءات اللازم اتخاذها في هذا الشأن.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 22 explained in plain English
If Article 21 deals with the conduct of a dominant provider acting alone, this article deals with agreements between service providers.
What is prohibited: An agreement between service providers to carry out practices that would:
- make a service provider dominant in a relevant communications market or part of it;
- limit competition;
- prevent competition; or
- reduce the effectiveness of competition.
Civil consequence: The provisions on this matter in any agreements or decisions are void. That is, they are not given effect and bind no one, even if the parties signed them.
What the article left to the Implementing Regulations: Specifying the decisions and practices that would limit, prevent or reduce the effectiveness of competition, and the procedures to be taken in this regard.
Note that the text voids "the provisions on this matter"; it does not say the whole agreement is void. The phrase "would" means that what matters is the expected effect of the practice. The article itself sets no penalty other than voidness. Anyone drafting agreements between operators, or doubting an existing agreement, should consult a lawyer specializing in commercial cases and communications law.
Practical example
Two telecom companies agreed to divide regions between them so that neither provides its service in the other's region. This agreement would limit competition, so the provision in it is void and binds neither of them.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 22 of the Saudi Communications and Information Technology Law
May telecom companies agree to limit competition?
No. Service providers are prohibited from agreeing on practices that would limit competition, prevent it, reduce its effectiveness or make one of them dominant.
What is the status of clauses that restrict competition in contracts?
The provisions on this matter in any agreements or decisions are void.
Who specifies the practices that restrict competition?
The Implementing Regulations specify the decisions and practices that would limit, prevent or reduce the effectiveness of competition, and the necessary procedures.
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A service provider must obtain the Authority's approval before a material change in ownership or assignment of its license, and the Authority's non-objection to a material change in senior management, with 90 days for the Authority to decide.
1- دون إخلال بما تقضي به الأنظمة الأخرى، على مقدم الخدمة الحصول على الآتي: أ- موافقة الهيئة قبل اتخاذ أي من الإجراءين الآتيين: (1) تغيير جوهري في ملكية المرخص ل
- Article 15
The article requires all service providers to meet reasonable interconnection or access requests, imposes stricter duties on a dominant provider covering 40% of the market, and gives the Authority binding power to resolve disputes.
1- يلتزم جميع مقدمي الخدمة بتلبية الطلبات المعقولة لربط الاتصال البيني أو النفاذ التي يتقدم بها مقدمو خدمة آخرون، وذلك وفقاً للأحكام التي تحددها اللائحة. 2- يلت
- Article 20
The article requires the Board's approval before a service provider merges or anyone buys 5% or more of its shares or enough to reach control, and requires notifying the Authority within 5 working days of any preliminary merger agreement.
1- دون إخلال بما تقضي به الأنظمة الأخرى، على مقدم الخدمة الحصول على موافقة المجلس قبل القيام بأي عملية اندماج مع مقدم خدمة آخر في الداخل أو الخارج، وإبلاغ الهيئ
- Article 21
The article prohibits a dominant provider in a relevant communications market, or part of it, from any activity or measure that abuses its position, and refers the details to the Implementing Regulations.
لا يجوز لأي مقدم خدمة مسيطر على سوق اتصالات ذي صلة أو جزء منه القيام بنشاط أو إجراء يمثل استغلالا لوضعه. وتوضح اللائحة التزامات مقدم الخدمة المسيطر والقواعد الت
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.