Based on the tasks and responsibilities of the General Authority for Competition in enforcing the competition system, and in extension of its role in protecting and promoting fair competition and combating monopolistic practices, and in order to achieve the principle of transparency of procedures;
The Authority would like to clarify that it received a report that included suspicion that a number of establishments operating in the office machinery, office and home furniture and contracting sector had violated the Competition Law by agreeing among themselves to collude in a number of government tenders, which is prohibited by paragraph (7) of Article Four of the Competition Law issued by Royal Decree No. (M/25) dated 4/5/1425 AH.
Based on the initial investigations, the Board of Directors of the Authority issued its decision on 18/10/1439 AH, which stipulated “approval to take the procedures of investigation, research, gathering evidence and investigating the possibility of the Riyadh House - a branch of Al-Jeraisy Group Company, and the related parties violating any of the articles of the Competition Law and its executive regulations.”
After gathering evidence and information and conducting the necessary investigations, it became clear that a number of establishments had violated the competition system by agreeing among themselves to collude in a number of government competitions.
Based on the regulatory powers to refer practices that violate the competition system to the Committee for Adjudication of Violations of the Competition System for a decision: the Board of Directors of the Authority issued a decision to initiate criminal proceedings against those establishments.
The Disciplinary Committee issued its decision on 13/02/1442 AH, punishing each of the following:
1- Riyadh House – Al-Jeraisy Group Company Branch.
2- Manar Al-Mahmal – Branch of Al-Jeraisy Group Company.
3- Hassan Essam Qabbani Contracting and Furniture Company.
4- Najoum Furniture Establishment, owned by Abdullah Salem Badawil.
Based on paragraph (7) of Article Four of the previous Competition Law, which stipulated the following: “Practices, agreements, or contracts between competing establishments or those likely to be competitors, whether written or oral, express or implied, are prohibited if the purpose of these practices, agreements, or contracts, or their effect, is to restrict trade and disrupt competition between establishments, including:
The impact on the normal price of offers to sell, buy, or supply goods and services, whether in governmental or non-governmental competitions or auctions.”
The decisions included publishing the penalties at the expense of the defendants. It should be noted that the decisions and rulings have acquired the status of finality, which included imposing fines of (five million riyals) on each of: Beit Al Riyadh - a branch of Al Jeraisy Group Company and Manar Al Mahmal - a branch of Al Jeraisy Group Company, and (five hundred and eighty thousand riyals) on Hassan Essam Qabbani Contracting and Furniture Company, and (thirty thousand riyals) on Najoum Furniture Establishment, owned by Abdullah Salem Badweel.
The Authority urges all establishments to comply with the Competition Law and its implementing regulations, and to operate in accordance with the principles of legitimate competition that encourage consumer choices and support market growth and efficiency within a framework of fairness and transparency.
