Shaping the Future of Commerce: Saudi General Authority for Competition
In the intricate world of market dynamics, the Saudi General Authority for Competition (GAC) emerges as a pivotal force driving equitable and competitive commerce. Guided by a vision of leadership, GAC has crafted a strategic roadmap to enhance the efficiency of the national economy and elevate consumer welfare.
GAC’s core mission revolves around championing fair competition and fostering an environment that promotes economic prosperity and consumer empowerment. As a leading regulatory authority, it strives to uphold market integrity while encouraging innovation and diversity in goods and services.
Fines Galore: Millions Imposed on Violators
Established in 2004, the General Authority for Competition in Saudi Arabia underwent a significant transformation in October 2017, when the Kingdom’s Council of Ministers rebranded it and revamped its organizational structure. GAC was granted financial and administrative independence, further solidified by a royal decree in March 2019 approving an updated competition system.
Since its inception two decades ago, GAC has imposed fines totaling nearly SR1 billion ($270 million) on companies found in violation of its regulations. According to GAC spokesman Saad Hamad Al-Masaud, 252 entities have faced sanctions for breaching the country’s competition rules, with a total of 134 decisions and fines amounting to approximately SR828,895,023.
Cracking Down on Unfair Practices
In August 2023, GAC levied a hefty SR10 million fine on a company for abusing its dominant market position, a violation of fair competition principles. The authority also penalized a feed company with a SR10 million fine for attempting to manipulate the bran commodity market supply, stifling trade and controlling prices.
In a separate incident, GAC fined 14 cement companies a collective sum of SR140 million for colluding to raise prices in the Kingdom, with each producer facing a SR10 million penalty for price manipulation.
Economic Impacts and Benefits
Renowned economist Talat Hafiz stressed the importance of fostering fair market conditions to support economic growth, attract foreign investments, and ensure fair trade. He highlighted GAC’s role in enforcing competition laws and promoting innovation, abundance, and diversification of goods and services.
Collaborating with industry experts, GAC conducted investigations in the automotive sector to enhance market fairness and consumer protection. Such initiatives are expected to boost trust in the Kingdom’s economy and market integrity.
Driving Economic Development
Abdulwahab Al-Gahtani, a professor at King Fahd University of Petroleum and Minerals, emphasized GAC’s role in stimulating market competition, supporting businesses, and safeguarding consumers. He underscored the authority’s contribution to Saudi Arabia’s economic development and alignment with Vision 2030 goals.
Al-Gahtani noted the importance of GAC’s collaboration with the government to guide businesses towards compliance with competition regulations, essential for diversifying the economy away from oil dependency. He stressed the significance of fair competition, healthy corporate governance, and transparency to protect shareholders’ investments and ensure sustainable economic growth.