Since its inception 20 years ago, GAC has imposed fines totaling nearly SR1 billion ($270 million) on companies found to be violating its regulations.
In the complex landscape of market dynamics, the Saudi General Authority for Competition emerges as a pivotal force tasked with shaping the future of equitable and competitive commerce.
Guided by a vision of becoming a leading body, GAC has developed a strategic roadmap to bolster the efficiency of the national economy and advance consumer welfare.
At the heart of GAC’s vision lies a commitment to championing fair competition and fostering an environment conducive to economic prosperity and consumer empowerment. As a leading regulatory authority, it aspires to uphold the integrity of market mechanisms while promoting innovation and diversity in goods and services.
An initial competition system was established in Saudi Arabia in 2004, and in October 2017, the Kingdom’s Council of Ministers endorsed the change of the name to the General Authority for Competition and a new organizational structure.
GAC was also made a financially and administratively independent entity, and in March 2019 another royal decree was issued approving the updated competition system.
Since its inception 20 years ago, GAC has imposed fines totaling nearly SR1 billion ($270 million) on companies found to be violating its regulations.
The authority has sanctioned 252 entities for violating the country’s competition rules since the organization was established.
Commenting on why penalties are imposed on a certain firm more than once, GAC spokesman Saad Hamad Al-Masaud highlighted that whenever a company is found guilty of committing a violation, GAC wastes no time undertaking the necessary administrative and legal procedures before imposing an additional penalty based on the nature of that violation.
The highest amount ever imposed was around SR19 million ($5 million) against a gypsum firm. In 2023, GAC announced it penalized 14 cement companies with a collective fine of SR140 million ($37 million) for conspiring to raise prices in the Kingdom. GAC imposed a SR10 million ($2.6 million) fine on each of the producers for manipulating the cement costs to benefit themselves.
According to experts speaking to Arab News, GAC will play a major role in helping the country attain its 2030 goals of diversifying its economy away from oil.
Reflecting on the impact of GAC’s competition regulations on market efficiency and consumer welfare, one of the experts emphasized that businesses operating in the country are experiencing significant benefits from the fair environment, which is crucial for the sustained growth established by these regulatory measures.
In addition, experts say that GAC needs more involvement in economic development to guide businesses to further comply with the competition regulations.
According to Abdulwahab Al-Gahtani, professor of strategic and human resources management at the Business School of King Fahd University of Petroleum and Minerals, the competition protection authority “can cooperate with the Capital Market Authority to ensure that all businesses are transparent and are performing in compliance with the rules to protect the economy from many possible unethical practices which can harm it.”
Source: Arab News
