Article 11 of the Saudi Competition Law
المادة 11 من نظام المنافسة
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز للمنشآت المشار إليها في المادة (السابعة) من النظام استكمال إجراءات التركز الاقتصادي إلا في الحالات الآتية:
1- إذا أبلغتها الهيئة كتابة بالموافقة.
2- إذا انقضت (تسعون) يوماً من تاريخ الإبلاغ دون أن تبلغها الهيئة كتابة بموافقة المجلس أو رفضه.
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 11 explained in plain English
This article completes the duty to notify in Article 7, which requires establishments wishing to carry out an economic concentration to notify the Authority at least 90 days before completing it if their total annual sales exceed an amount determined by the Regulations.
These establishments may not complete the concentration procedures except in one of two cases:
- If the Authority notifies them in writing of approval.
- If 90 days pass from the date of notification without the Authority notifying them in writing of the Board's approval or rejection.
This means that notification alone is not enough; the establishments must wait. The Authority's silence for 90 days from the date of notification opens the way to completing the procedures under the second case. But if a rejection decision is issued and the establishments are notified of it in writing within the period, neither case is met.
Article 10 sets out the forms of the Board's decision (approval, conditional approval or rejection), with reasons required for the conditional approval and rejection decisions.
To determine the right timing for closing a merger or acquisition deal, it is advisable to consult a lawyer specialized in competition and commercial cases.
Practical example
A technology company in Jeddah notified the Authority of its acquisition of a competing startup, and 90 days passed from the date of notification without it receiving written notice of the Board's approval or rejection. Under this article, it may then complete the acquisition procedures.
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 11 of the Saudi Competition Law
Can an acquisition be completed before the competition authority responds?
Establishments required to notify may not complete the concentration except after being notified in writing of approval, or after 90 days pass from the date of notification without being notified in writing of the Board's approval or rejection.
What happens if the Authority does not respond within 90 days?
If 90 days pass from the date of notification without the Authority notifying the establishments in writing of the Board's approval or rejection, they may complete the concentration procedures.
Articles this article refers to
More articles on Economic Concentration and Merger
- Article 7
The 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.
يجب على المنشآت الراغبة في المشاركة في عملية التركز الاقتصادي إبلاغ الهيئة قبل (تسعين) يوماً على الأقل من إتمامها إن تجاوز إجمالي قيمة المبيعات السنوية للمنشآت
- Article 8
The 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.
يجوز للمجلس -بناء على توصية من لجنة فنية يشكلها لهذا الغرض- الموافقة على طلب المنشأة إعفاءها من أي حكم من أحكام المواد (الخامسة) و(السادسة) و(السابعة) من النظام
- Article 9
The 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.
1- تحدد اللائحة الإجراءات الواجب اتباعها للإبلاغ عن التركز الاقتصادي، بما في ذلك محتواه والمعلومات والمستندات المطلوبة. 2- للهيئة الاطلاع على جميع السجلات والبي
- Article 10
The 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.
يصدر المجلس قراراً في شأن بلاغات التركز الاقتصادي بأحد الأشكال الآتية: 1- الموافقة. 2- الموافقة المشروطة. 3- الرفض. ويتعين أن يكون القرار الصادر بالموافقة المشر
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.