The General Authority for Competition announced that the Competition Law Violations Adjudication Committee issued its decision to penalize 4 establishments operating in the concrete sector for their agreement to raise and stabilize the prices of ready-mixed concrete.<The General Authority for Competition said in a statement today that based on the tasks of the General Authority for Competition and its competencies in enforcing the competition law and as an extension of its role in protecting and encouraging 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 has received a complaint from a number of citizens It is suspected that a number of establishments operating in the concrete sector violated the Competition Law by agreeing among themselves to raise and stabilize the prices of ready-mixed concrete, which is prohibited by paragraph (1) of Article 4 of the Competition Law issued by Royal Decree No. (M/25) dated 4/5/1425 AH.

Added: “Based on the preliminary investigations, the Board of Directors of the Authority issued its decision on 05/05/1439 AH to “approve taking investigative procedures, research, collecting evidence and investigating the possibility of establishments operating in the concrete sector in the Saudi market and related parties violating any of the articles of the Competition Law and its executive regulations.”

It indicated that after collecting evidence and information and conducting the necessary investigations, it became clear that a number of establishments violated the competition law by agreeing among themselves to raise and stabilize the prices of ready-mix concrete, and based on the statutory powers to refer practices violating the competition law to the Competition Law Violations Adjudication Committee The Board of Directors of the Authority issued a decision to initiate criminal proceedings against these establishments, and the adjudication committee issued its decision on 22/12/1441 AH to penalize Abdulaziz Sulaiman Al Muhailab & Co. for Cement Products, Badr Khalid Al Shahili Ready Mix Factory, Nasser Al Farraj Ready Mix Factory, and Al Wadi Ready Mix Company.

It continued: “Based on paragraph (1) of Article 4 of the former Competition Law, which stipulates the following: “Practices, agreements or contracts between competing or potentially competing enterprises are prohibited, whether written or oral contracts, whether explicit or implicit, if the aim or effect of these practices, agreements or contracts is to restrict trade and disturb competition between enterprises, including controlling the prices of goods and services intended for sale by increasing, decreasing, fixing, or in any other way that harms legitimate competition.”

The decisions included publishing the penalties at the expense of the defendants. It should be noted that the decisions and rulings have acquired the final status, which included the imposition of fines of (fifty thousand riyals) on each of Abdulaziz Sulaiman Al Muhailab & Co. for Cement Products, Badr Khalid Al Shahili Factory for Ready Mix Concrete, Nasser Al Farraj Factory for Ready Mix Concrete, and Al Wadi Company for Ready Mix Concrete.

The Authority calls on all establishments to comply with the competition law and its executive regulations, and to work with the contents of legitimate competition that encourages consumer choices and supports the growth and efficiency of markets within a framework of justice and transparency.