In force
Saudi Competition Law
نظام المنافسة
The Competition Law of Saudi Arabia. This page presents the official Arabic text of each article with plain-English explanations for residents and businesses.
- Articles
- 28
- In force
- 28
- Amended
- 0
- Issued
- 29/6/1440 AH
Issued by: مرسوم ملكي رقم (م / 75) بتاريخ 1440/6/29هـ · قرار مجلس الوزراء رقم (372) بتاريخ 1440/6/28هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Competition Law by topic
General Provisions of the Competition Law7 articlesAgreements That Harm Competition1 articleAbuse of a Dominant Position1 articleEconomic Concentration and Merger5 articlesExemption from the Competition Rules1 articleGeneral Authority for Competition4 articlesInvestigating Competition Violations3 articlesCommittee for Deciding Competition Violations1 articlePenalties for Violating the Competition Law4 articlesMeasures to Remove the Violation3 articlesCompensation for Monopolistic Practices2 articles
Articles of the Saudi Competition Law
- Article 1The article defines the key terms of the Competition Law, such as establishment, market, dominant position, economic concentration, the Authority and the Committee.
- Article 2The article explains that the Competition Law aims to protect and encourage fair competition and combat monopolistic practices, in order to improve the market environment and develop the economy.
- Article 3The article sets the scope of the Competition Law as establishments inside the Kingdom and external practices affecting it, excludes exclusively authorized government bodies, and makes the Authority the primary competent body.
- Article 4The article provides that prices of goods and services are subject to market rules and free competition, except those priced by a Council of Ministers decision or under a law.
- Article 5The article prohibits practices and agreements among establishments that aim at or result in undermining competition, such as price fixing, market division and bid rigging.
- Article 6The article prohibits a dominant establishment from abusing its position to undermine competition, such as selling below cost, imposing resale prices, discriminating and refusing to deal.
- Article 7The article requires establishments wishing to carry out an economic concentration to notify the Authority at least 90 days before completing it if their annual sales exceed an amount set by the Regulations.
- Article 8The article allows the Board, on a technical committee's recommendation, to exempt an establishment from Articles 5, 6 and 7 if this improves the performance of the market or establishments and gives consumers a benefit that outweighs the restriction of competition.
- Article 9The article refers the procedures, content and documents for notifying an economic concentration to the Regulations, and gives the Authority the right to inspect and copy the records of the establishments concerned.
- Article 10The article provides that the Board's decision on economic concentration notifications is approval, conditional approval or rejection, with reasons required for conditional approval and rejection decisions.
- Article 11The article bars establishments required to notify from completing an economic concentration except with the Authority's written approval or after 90 days from notification pass without being told of approval or rejection.
- Article 12The article bars the Authority and its Board members from carrying on commercial business, except members chosen in their personal capacity, bars its staff from conflicting professions, and bars accepting gifts and donations except from government bodies.
- Article 13The article requires Board members and the Authority's staff to keep information obtained from establishments confidential, and bars the Chairman, Governor and members from deliberations in which they have an interest or a link.
- Article 14The article places the reasoned decision on inquiry, investigation, initiating a criminal case or closing a file on competition violations with the Board, and lets the Chairman or Governor act in urgent cases.
- Article 15The article gives employees designated by the Board judicial police status and the right to enter establishments, inspect their documents and prove violations by all means, in addition to investigation and prosecution.
- Article 16The article prohibits establishments from obstructing enforcement officers or investigators, withholding information, misleading them, or hiding or destroying documents, and lets the Authority call on security bodies.
- Article 17The article allows the Authority to request periodic reports, or reports when needed, on establishments operating in the market from the relevant official bodies, and refers the details to the Regulations.
- Article 18The article regulates forming the committee for adjudicating violations, with five members for three years and the power to impose penalties, and allows a grievance against its decisions before the competent court within 30 days.
- Article 19The article sets the fines for violating Articles 5, 6, 7, 11 and 16, doubling of the fine for repeat offenses within three years, and publication of the penalty decision at the violator's expense.
- Article 20The article sets a fine not exceeding SAR 2 million for violating any other provision of the Competition Law or its Regulations, without prejudice to the special penalties in Articles 12, 19 and 24.
- Article 21The article allows the Board to require a violator to remove the violation, and after the Committee's decision to require it to dispose of assets or shares, pay a daily fine up to SAR 10,000, or close temporarily for up to 30 days.
- Article 22The article sets what is taken into account in imposing the penalties and measures of Articles 19, 20 and 21: the nature of the activity subject to the violation, its circumstances, seriousness and effects, in each case separately.
- Article 23The article allows the Board not to refer a violating establishment to the Committee if it takes the initiative to provide evidence revealing its partners, and to accept a settlement with it, under the Regulations' controls and mechanisms to compensate those harmed.
- Article 24The article punishes with a fine not exceeding SAR 1 million any Board member or Authority employee who discloses a secret related to their work with the intent to achieve a material or moral benefit.
- Article 25The article allows any natural or legal person harmed by practices that violate the Competition Law to seek compensation before the competent court.
- Article 26The article provides that the current Competition Law replaces the previous Competition Law issued by Royal Decree No. M/25 dated 4/5/1425 AH.
- Article 27The article requires the Authority's Board to issue the Implementing Regulations of the Competition Law within 180 days of the Law's publication in the Official Gazette, to take effect from the date the Law takes effect.
- Article 28The article provides that the Competition Law takes effect 180 days after the date of its publication in the Official Gazette.
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