{"id":26775,"date":"2019-09-30T13:16:32","date_gmt":"2019-09-30T10:16:32","guid":{"rendered":"https:\/\/www.amlak.net.sa\/home\/?p=26775"},"modified":"2019-09-30T13:16:32","modified_gmt":"2019-09-30T10:16:32","slug":"%d8%b5%d8%ad%d9%8a%d9%81%d8%a9-%d8%a3%d9%85%d9%84%d8%a7%d9%83-%d8%aa%d9%88%d8%b1%d8%af-%d9%85%d9%84%d8%a7%d9%85%d8%ad-%d8%a7%d9%84%d9%85%d9%86%d8%a7%d9%81%d8%b3%d8%a9-%d8%aa%d8%b7%d9%88%d9%8a%d8%b1","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/26775\/","title":{"rendered":"The Competition Authority reveals the criteria and requirements for classifying a dominant enterprise in the market"},"content":{"rendered":"

The General Authority for Competition revealed that the executive regulations of the new competition law set two criteria for classifying an establishment as dominant in the market, namely if its market share reaches 40 percent, and if it has the ability to influence the relevant market. This was explained by Abdulaziz Al-Obeid, Director of the Legal Affairs Department at the Authority, while speaking at a meeting of the Jeddah Chamber, on the occasion of\u00a0 <\/span>Organizing a series of awareness meetings launched by the General Authority for Competition ( Real Estate Development )<\/p>\n

Features of the classification<\/h3>\n

Abdulaziz Al Obaid, Director of the Legal Affairs Department at the Commission, discussed the most prominent features of the executive regulations of the Competition Law. He said: \u00bbIt is the right of any enterprise to enjoy a dominant position, but it does not have the right to abuse its dominant position,\u00bb adding that \u00abreaching 40 percent of the market share is classified as dominant.\u00bb This classification includes combined entities and enterprises that act in committing the offense or effect in a single management, such as imposing unfair or discriminatory business conditions on suppliers or distributors, aggressive pricing to drive new competitors out of the market, and boycotting enterprises that do not adhere to the restrictive conditions set by the dominant enterprise.<\/p>\n

The power and influence of the organization<\/h3>\n

As for the strength of the entity's influence in the market, it is according to nine criteria defined by the system. Al-Obeid explained that the most prominent differences between the new competition system, which will be applied on September 25, and the government's tenders and procurement system are that the competition system for commercial activities consists of 28 articles, while the number of articles in the government's tenders and procurement system is 99 articles.<\/p>\n

The first aims to protect products from unfair competition and promote them in the market, while the Competition, Procurement and Government Tenders Law works to protect public money by organizing public tendering procedures. The General Authority for Competition (GAC) and its adjudication committee are responsible for enforcing the competition law, while the competition, government procurement and tenders law, and government entities have their disputes adjudicated by the administrative courts.<\/p>\n

The prohibitions in the Competition Law include restrictive agreements or practices, written or oral, explicit or implicit, if they have the purpose or effect of distorting competition, in addition to abuse of dominant position and exploitation of dominant market power. The law will apply to all establishments within Saudi Arabia, including institutions and companies practicing economic activity, individuals practicing economic activity, as well as behaviors and practices that occur outside Saudi Arabia when they have an impact on competition within the country.<\/p>\n

Key Terms of Reference<\/h3>\n