The General Authority for Competition announced that the Committee for Adjudicating Violations of the Competition Law has issued a decision to penalize four companies operating in the concrete sector for agreeing to raise and fix the prices of ready-mix concrete.
In a statement issued today, the Authority said, that, based on the General Authority for Competition’s mandate and jurisdiction to enforce the Competition Law, as an extension of its role in protecting and promoting fair competition and combating monopolistic practices, and in accordance with the principle of procedural transparency; the Authority wishes to clarify that it has received a complaint from a number of citizens alleging that several entities operating in the concrete sector have violated the Competition Law by agreeing among themselves to raise and fix the prices of ready-mix 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.
It added: “Based on preliminary investigations, the Authority’s Board of Directors issued its decision on 5/5/1439 AH, ruling to “Approve the initiation of fact-finding, research, and evidence-gathering procedures, as well as an investigation into the possibility that entities operating in the concrete sector in the Saudi market and related parties have violated any of the articles of the Competition Law and its implementing regulations.”
She noted that after gathering evidence and information and conducting the necessary investigations, it became clear that a number of entities had violated the Competition Law by agreeing among themselves to raise and fix the prices of ready-mix concrete, Based on its statutory authority to refer practices violating the Competition Law to the Competition Law Violations Adjudication Committee for a ruling, the Authority’s Board of Directors issued a decision to initiate criminal proceedings against those entities, The Adjudication Committee issued its decision on 22/12/1441 AH, penalizing the following entities: Abdulaziz Suleiman Al-Muhailib & Partners Cement Products Company, Badr Khalid Al-Shahili Ready-Mix Concrete Plant, Nasser Al-Faraj Ready-Mix Concrete Company, and Al-Wadi Ready-Mix Concrete Company.
It continued: “Pursuant to Paragraph (1) of Article 4 of the former Competition Law, which stipulates the following: “Practices, agreements, or contracts between competing enterprises or those likely to compete—whether such contracts are written or oral, whether express or implied, if the object of such practices, agreements, or contracts, or their effect, is to restrict trade and distort competition among enterprises, including the control of prices of goods and services intended for sale by increasing, decreasing, or fixing them, or in any other manner that harms legitimate competition.”
The decisions included the publication of the penalties at the defendants" expense. It should be noted that the decisions and judgments have become final, and they imposed fines of (fifty thousand riyals) on each of the following entities: Abdulaziz Suleiman Al-Muheilib & Partners Cement Products Company, Badr Khalid Al-Shehili Ready-Mix Concrete Plant, Nasser Al-Faraj Ready-Mix Concrete Plant, and Al-Wadi Ready-Mix Concrete Company.
The Commission urges all businesses to comply with the Competition Law and its implementing regulations, and to adhere to the principles of fair competition that promote consumer choice and support market growth and efficiency within a framework of fairness and transparency.
“Competition Authority” penalizes 4 establishments that agreed to raise and stabilize the prices of ready-mix concrete
