Article 1 of the Saudi Competition Law
المادة 1 من نظام المنافسة
The article defines the key terms of the Competition Law, such as establishment, market, dominant position, economic concentration, the Authority and the Committee.
Official text (Arabic)
This article has not been amended since the law was issued.
يقصد بالمصطلحات الآتية -أينما وردت في هذا النظام- المعاني المبينة أمام كل منها، ما لم يقتض السياق غير ذلك:
النظام: نظام المنافسة.
الهيئة: الهيئة العامة للمنافسة.
المجلس: مجلس إدارة الهيئة.
الرئيس: رئيس المجلس.
المحافظ: محافظ الهيئة.
اللائحة: اللائحة التنفيذية للنظام.
المنشأة: كل شخص ذي صفة طبيعية أو اعتبارية يمارس نشاطاً اقتصادياً. ويشمل النشاط: الأعمال التجارية، والزراعية، والصناعية، والخدمية، وشراء السلع والخدمات، وبيعها.
السوق: مكان أو وسيلة يلتقي فيه مجموعة من المشترين والبائعين الحاليين والمرتقبين خلال مدة زمنية محددة.
الوضع المهيمن: وضع تكون من خلاله المنشأة - أو مجموعة منشآت - مسيطرة على نسبة معينة من السوق التي تمارس نشاطها فيها أو قادرة على التأثير فيها، أو بهما معاً، وتحدد اللائحة تلك النسبة وفقاً لمعايير يقرها المجلس.
التركز الاقتصادي: كل عمل ينشأ منه نقل كلي أو جزئي لملكية أصول أو حقوق أو أسهم أو حصص أو التزامات منشأة إلى منشأة أخرى، أو الجمع بين إدارتين أو أكثر في إدارة مشتركة، وذلك وفقاً لما تحدده اللائحة من ضوابط ومعايير.
اللجنة: لجنة الفصل في مخالفات النظام.
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 1 explained in plain English
This is the definitions article of the Competition Law. It explains what is meant by the words that recur in its other articles, unless the context of a particular text requires another meaning.
- The Authority: the General Authority for Competition; the Board: its board of directors; the Chairman: the chairman of the Board; and the Governor: the Governor of the Authority.
- The Regulations: the Implementing Regulations of the Competition Law.
- Establishment: every natural person (an individual) or legal person (a company or institution) who carries out an economic activity, including commercial, agricultural, industrial and service activities and the purchase and sale of goods and services. The definition is broad and is not limited to large companies.
- Market: a place or means in which current and prospective buyers and sellers meet during a specified period; it may be a physical market or an online platform.
- Dominant position: when an establishment or a group of establishments controls a certain percentage of the market or is able to influence it, or both; the percentage is determined by the Regulations according to criteria approved by the Board.
- Economic concentration: any action that transfers the ownership of assets, rights, shares, stakes or obligations of one establishment to another in whole or in part, or that combines two or more managements under a joint management, in accordance with the controls determined by the Regulations.
- The Committee: the committee for adjudicating violations of the Law.
Understanding these definitions is important for applying the other articles; for example, the objective of the Law in Article 2 is to protect fair competition, and determining who counts as an "establishment" shows who the Law addresses.
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 1 of the Saudi Competition Law
Does the Competition Law cover individuals or only companies?
It covers both. An establishment under the Law is every natural or legal person who carries out an economic activity such as trade, industry, services, or buying and selling.
What is meant by a dominant position?
It is when an establishment or a group of establishments controls a certain percentage of the market or is able to influence it, or both; the Regulations determine this percentage according to criteria approved by the Board.
What is economic concentration?
Any action that transfers the ownership of assets, rights, shares, stakes or obligations of one establishment to another in whole or in part, or that combines two or more managements under a joint management, according to the controls in the Regulations.
More articles on General Provisions of the Competition Law
- Article 2
The 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.
يهدف النظام إلى حماية المنافسة الــعادلة وتشجيعها، ومكافحة ومنع الممارسات الاحتكارية التي تؤثر على المنافسة المشروعة أو على مصلحة المستهلك؛ بما يؤدي إلى تحسين ب
- Article 3
The 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.
1- مع عدم الاخلال بما ورد في الأنظمة الأخرى, تطبق أحكام النظام على ما يأتي: أ- جميع المنشآت داخل المملكة. ب- الممارسات التي تقع خارج المملكة, ذات الأثر المخل با
- Article 4
The 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.
تكون أسعار السلع والخدمات وفقاً لقواعد السوق ومبادئ المنافسة الحرة، عدا أسعار السلع والخدمات التي تحدد بناءً على قرار من مجلس الوزراء، أو بموجب نظام.
- Article 26
The article provides that the current Competition Law replaces the previous Competition Law issued by Royal Decree No. M/25 dated 4/5/1425 AH.
يحل النظام محل نظام المنافسة، الصادر بالمرسوم الملكي رقم (م / 25) وتاريخ 4 / 5 / 1425هـ.
- Article 27
The 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.
يصدر المجلس اللائحة خلال (مائة وثمانين) يوماً من تاريخ نشر النظام في الجريدة الرسمية، ويعمل بها من تاريخ نفاذه.
- Article 28
The article provides that the Competition Law takes effect 180 days after the date of its publication in the Official Gazette.
يُعمَل بهذا النظام بعد (مائة وثمانين) يوماً من تاريخ نشره في الجريدة الرسمية.
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.