Article 5 of the Saudi Competition Law

This is one of the most important articles of the Competition Law. It prohibits practices among establishments, including agreements or contracts, whether written or oral, express or implied, if their purpose or effect is to undermine competition. Either one is enough: intent or effect.

The article gives prominent examples (the list is not exhaustive, because of the word "particularly"):

1. Fixing or suggesting the prices of goods and fees for services and the terms of sale or purchase.
2. Fixing the sizes, weights or quantities of production or of the performance of services.
3. Limiting the flow of goods and services to the markets or removing them from the markets by hiding or stockpiling them without justification or refusing to deal in them.
4. Any conduct that obstructs an establishment's entry into the market or excludes it from it.
5. Withholding available goods and services from particular establishments in whole or in part.
6. Dividing or allocating markets on any basis, particularly geographic areas, distribution centers, types of customers or seasons.
7. Freezing or limiting manufacturing, development, distribution, marketing and other forms of investment.
8. Collusion or coordination in tenders or bids in government or other auctions and competitions in a way that undermines competition.

Note that Article 4 makes prices subject to market rules and free competition, and this article prevents disrupting that freedom through agreement among establishments. Article 6 addresses different conduct: a dominant establishment's abuse of its position in the market or in a substantial part of it to undermine or limit competition. And an establishment under Article 1 is every natural or legal person who carries out an economic activity, so the prohibition covers individuals and companies.

Before entering into distribution or coordination agreements with competitors, it is advisable to consult a lawyer specialized in competition and commercial cases.