The Competition Council has warned steel companies in the Kingdom against agreeing to raise the prices of reinforced steel, as this constitutes a violation of the Competition Law under Article 4, which states that any agreements between competing entities, whether written or verbal, aimed at controlling the prices of goods and services intended for sale—whether by increasing, decreasing, or fixing them, or in any other manner that harms legitimate competition—constitutes a prohibited violation of the Competition Law.

This comes against the backdrop of a statement by the National Steel Committee of the Council of Saudi Chambers, Eng. Shuail Al-Ayed, that Saudi steel companies are considering raising rebar prices by up to 10% in the coming weeks due to rising production costs and declining sales, The statement from the Competition Council, affiliated with the Ministry of Commerce, noted that discussing information regarding prices and production plans is prohibited and must be avoided by competing entities. If the Council determines that prices have been raised collectively, all companies will be subject to investigation.”

The Competition Council emphasizes that what has been published in the media constitutes a clear violation of competition law. If an agreement to raise prices is proven, those companies will be punished with the maximum penalties, which may reach 10% of total sales value, with total fines potentially reaching hundreds of millions. The Council stands against anyone who violates competition law, seeks to promote and encourage fair competition, and combats monopolistic practices that affect legitimate competition.