Article 6 of the Saudi Competition Law
المادة 6 من نظام المنافسة
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يحظر على المنــشــأة أو المنشآت التي تتمتع بوضع مهيمن في السوق أو جزء مهم منه؛ إساءة استغلال هذا الوضع للإخلال بالمنافسة أو الحد منها، ومن ذلك ما يأتي:
1- بيع السلعة أو الخدمة بسعر أقل من التكلفة الإجمالية؛ لإخراج منشآت من السوق أو تعريضها لخسائر جسيمة، أو إعاقة دخول منشآت محتملة.
2- تحديد أسعار أو شروط إعادة بيع السلع أو الخدمات، أو فرضها.
3- تقليل الكميات المتاحة من المنتجات أو زيادتها؛ لأجل التحكم بالأسعار وافتعال وفرة أو عجز غير حقيقي.
4- التمييز في التعامل بين المنشآت في العقود المتشابهة بالنسبة إلى أسعار السلع وبدل الخدمات أو شروط بيعها وشرائها.
5- رفض التعامل مع منشأة أخرى دون سبب موضوعي، وذلك من أجل الحد من دخولها السوق.
6- الاشتراط على منشأة الامتناع عن التعامل مع منشأة أخرى.
7- تعليق بيع سلعة أو تقديم خدمة بشرط تحمّل التزامات أو قبول سلع أو خدمات تكون بطبيعتها، أو بموجب الاستخدام التجاري، غير مرتبطة بالسلعة أو الخدمة محل التعاقد أو التعامل الأصلي.
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 6 explained in plain English
Dominance in the market is not a violation in itself; what is prohibited is abusing it. The article prohibits an establishment or establishments that hold a dominant position in the market or in a substantial part of it from abusing that position to undermine or limit competition. A dominant position under Article 1 is controlling a certain percentage of the market determined by the Regulations, or being able to influence it, or both.
Forms of abuse that the text mentions include:
- Selling at a price below total cost in order to drive establishments out of the market, expose them to serious losses, or obstruct the entry of potential establishments.
- Fixing or imposing the prices or terms of resale of goods or services.
- Reducing or increasing the quantities available to control prices and create an artificial abundance or shortage.
- Discriminating among establishments in similar contracts in prices or terms of sale and purchase.
- Refusing to deal with another establishment without an objective reason in order to limit its entry into the market.
- Requiring an establishment to refrain from dealing with another establishment.
- Making a sale or service conditional on accepting obligations, goods or services that are not related by their nature or by commercial use to the subject of the original contract.
Note that each form has its own condition in the text; for example, selling below cost is prohibited if it is to drive establishments out, expose them to serious losses or obstruct the entry of potential establishments. Article 5 deals with practices and agreements among establishments, whereas this article deals with the conduct of the dominant establishment. Article 7 addresses another aspect related to establishments' strength in the market: the duty to notify the Authority at least 90 days before completing an economic concentration if annual sales exceed an amount determined by the Regulations.
To assess whether an establishment is in a dominant position or whether its practice is an abuse, it is advisable to consult a lawyer specialized in competition and commercial cases.
Practical example
A large company controlling an influential share of the medical supplies market requires the pharmacies that buy from it not to deal with a new competing supplier, and sells below cost in a city that supplier entered. These two actions are forms of abuse of a dominant position set out in this article.
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 6 of the Saudi Competition Law
Is it a violation for a company to control the market?
No. What is prohibited is abusing a dominant position to undermine or limit competition, as in the forms the article mentioned.
May a dominant supplier impose the selling price on distributors?
Fixing or imposing the prices or terms of resale of goods or services is one of the prohibited forms of abuse of a dominant position.
Is selling below cost always prohibited?
The text prohibits it for a dominant establishment if it is to drive establishments out of the market, expose them to serious losses or obstruct the entry of potential establishments.
Articles this article refers to
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.

