Article 22 of the Saudi Competition Law
المادة 22 من نظام المنافسة
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يراعى عند إيقاع العقوبات والتدابير الواردة في المواد (التاسعة عشرة)، و(العشرين)، و(الحادية والعشرين) من النظام، ما يأتي:
1- عند تعدد أنشطة المنشأة وتباين كل نشاط عن الآخر؛ تقدر الغرامة وفقاً لطبيعة النشاط محل المخالفة، مع الأخذ في الحسبان الأنشطة المستهدفة من المخالفة.
2 - ظروف المخالفة وملابساتها.
3 - جسامة المخالفة.
4 - آثار المخالفة.
وذلك في كل حالة على حدة.
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
The penalties in the Competition Law set a maximum (such as "not exceeding"), and this article shows the criteria taken into account in determining the penalty or measure in each case. It applies to:
- Article 19: fines for violating Articles 5, 6, 7, 11 and 16, repeat offenses, and publication.
- Article 20.
- Article 21: measures to remove the violation such as disposing of assets, the daily fine and temporary closure.
The criteria:
- Multiple activities of the establishment: if the establishment has multiple, varied activities, the fine is assessed according to the nature of the activity subject to the violation, taking into account the activities targeted by the violation. All of the establishment's activities are therefore not considered if the violation is in one activity.
- The circumstances and surrounding facts of the violation.
- The seriousness of the violation.
- The effects of the violation.
The text stresses that this is in each case separately, meaning that assessing the penalty is individual according to the facts of each case, not by a fixed rule.
The article does not give a weight to each criterion, or percentages for mitigation or aggravation. Settlement and not referring an establishment that reveals its partners are dealt with in Article 23. An establishment facing a penalty that wants to present its circumstances is advised to consult a lawyer specialized in competition and commercial cases.
Practical example
A group of companies in Riyadh operates in food, real estate and transport, and was found in violation in the food activity only. In assessing the fine, the nature of the food activity subject to the violation and the activities targeted by it are taken into account, together with the circumstances, seriousness and effects of the violation.
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 Competition Law
How does the competition authority determine the amount of a fine?
It takes into account the nature of the activity subject to the violation where there are multiple activities, the circumstances and surrounding facts of the violation, its seriousness and its effects, in each case separately.
If a company has multiple activities, is the fine calculated on all of them?
Where activities are multiple and varied, the fine is assessed according to the nature of the activity subject to the violation, taking into account the activities targeted by the violation.
Articles this article refers to
- Article 19
The 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.
1- مع عدم الإخلال بما نصت عليه المادة (الرابعة والعشرون) من النظام، يعاقب كل من يخالف أي حكم من أحكام المواد (الخامسة، والسادسة، والسابعة، والحادية عشرة) من هذا
- Article 20
The 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.
دون إخلال بما تقضي به الفقرة (1) من المادة (الثانية عشرة)، والمادتان (التاسعة عشرة)، و(الرابعة والعشرون) من النظام؛ يعاقب كل من يخالف أي حكم آخر من أحكام النظام
- Article 21
The 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.
مع عدم الإخلال بما تقضي به المادة (التاسعة عشرة) من النظام، يجوز للمجلس اتخاذ أحد التدابير الآتية أو بعضها إن تبين له إن هناك مخالفة لأحد أحكام النظام: 1- تكليف
More articles on Penalties for Violating the Competition Law
- Article 19
The 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.
1- مع عدم الإخلال بما نصت عليه المادة (الرابعة والعشرون) من النظام، يعاقب كل من يخالف أي حكم من أحكام المواد (الخامسة، والسادسة، والسابعة، والحادية عشرة) من هذا
- Article 20
The 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.
دون إخلال بما تقضي به الفقرة (1) من المادة (الثانية عشرة)، والمادتان (التاسعة عشرة)، و(الرابعة والعشرون) من النظام؛ يعاقب كل من يخالف أي حكم آخر من أحكام النظام
- Article 24
The 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.
مع عـدم الإخـلال بأي عقوبة أشد ينص عليها النظام أو نظام آخر، يعاقب بغرامة لا تتجاوز (مليون) ريال كل من أفشى سرًّا له علاقة بعمله من أعضاء المجلس أو منسوبي الهيئ
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.