{"id":52531,"date":"2022-11-15T09:18:49","date_gmt":"2022-11-15T06:18:49","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=52531"},"modified":"2022-11-15T09:18:49","modified_gmt":"2022-11-15T06:18:49","slug":"%d8%ad%d8%af%d8%af%d8%aa-%d8%a7%d9%84%d9%87%d9%8a%d8%a6%d8%a9-%d8%a7%d9%84%d8%b9%d8%a7%d9%85%d8%a9-%d9%84%d9%84%d9%85%d9%86%d8%a7%d9%81%d8%b3%d8%a9-7-%d9%85%d9%85%d8%a7%d8%b1%d8%b3%d8%a7%d8%aa-%d9%84","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/52531\/","title":{"rendered":"\u201cCompetition Authority identifies 7 practices to stop abuse of market dominance"},"content":{"rendered":"

Specify General Authority for Competition<\/a><\/span> 7 practices to curb the abuse of dominant market positions, through their implementation Guidance on Assessing Abuse of Position<\/a> \"Dominant Position,\" which aims to clarify the Commission's competition-based approach to addressing instances of abuse of a dominant position by enterprises.<\/p>\n

Assessment of the Dominant Situation<\/strong><\/span><\/h3>\n

Market share reached 40%<\/strong><\/span><\/h4>\n

Article 10 of the Regulation sets forth two main criteria for determining a dominant position: The first stipulates that the market share must reach 40% or more in the relevant market, whether held by a single entity or a group of entities, provided that such group acts with a single intent in committing the practice and causing the effect.<\/p>\n

Control over prices, production, or supply<\/strong><\/span><\/h4>\n

The second criterion is the ability to influence the relevant market, including the ability to control prices, production, or supply, whether this ability is held by a single entity or a group of entities, provided that the group acts with a single intent in committing the practice or causing the effect.<\/p>\n

The Guidelines on the Abuse of a Dominant Position set out the general framework for analyzing conduct that may constitute an abuse of a dominant position, emphasizing that an undertaking or undertakings enjoying a dominant position in the market or a substantial part thereof are prohibited from abusing that position to distort or restrict competition, in accordance with seven practices set forth in the Competition Law and its implementing regulations.<\/h4>\n

Abusive Practices by a Dominant Party<\/strong><\/span><\/h4>\n

1. Selling goods or services at a price below total cost in order to drive businesses out of the market, subject them to substantial losses, or prevent potential new entrants from entering the market.<\/p>\n

2. Setting or imposing prices or terms for the resale of goods or services.<\/p>\n

3. Reducing or increasing the available quantities of products in order to control prices and create the illusion of abundance or a significant, but unreal, shortage.<\/p>\n

4. Differentiating in the treatment of establishments in similar contracts with respect to the prices of goods, fees for services, or the terms of their sale and purchase.<\/p>\n

5. Refusing to do business with another entity without an objective reason, in order to limit its entry into the market.<\/p>\n

6. Requiring an entity to refrain from doing business with another entity.<\/p>\n

7. Making the sale of a good or the provision of a service contingent upon the assumption of obligations or the acceptance of goods or services that, by their nature or in accordance with commercial practice, are unrelated to the good or service that is the subject of the original contract or transaction.<\/p>\n

Abuse of this dominance<\/strong><\/span><\/h4>\n

The Guidelines on the Abuse of a Dominant Position emphasize that no undertaking or undertakings enjoying a dominant position in the relevant market may abuse that dominance, whether the purpose is to harm competition or to impose actual or potential restrictions on it, and whether such purpose is explicit or implicit. The Authority clarified that its aim in publishing the guidelines is to increase transparency and enable businesses and individuals to understand the mechanism for enforcing the regulations and their resulting compliance obligations.<\/p>\n

Two Cases of Anticompetitive Practices<\/strong><\/span><\/h4>\n

The abuse of a dominant position constitutes an anticompetitive violation in two cases: first, compelling one undertaking to refrain from dealing with another undertaking, and second, making the sale or distribution of a good conditional upon the assumption of obligations or the acceptance of goods or services that, by their nature or according to commercial usage, are unrelated to the good or service that is the subject of the original contract or transaction.
\nThe General Authority for Competition applies the provisions prohibiting the abuse of a dominant position to cases in which a dominant enterprise in its relevant market abuses its dominant position, in accordance with its role in protecting market competition.<\/p>\n

Five Key Points in the Report<\/strong><\/span><\/h4>\n

The guidance document outlines five key points for assessing the abuse of a dominant position: the conduct of undertakings and individuals falling within the scope of the competition regime, mechanisms for assessing whether an enterprise or group holds a dominant position in the relevant market or a substantial part thereof; mechanisms for assessing specific conduct by a dominant enterprise that may constitute a violation of the competition law; as well as exemptions that may apply under the competition law to the undertakings in question, and the general procedures followed by the Authority regarding potential abuses of a dominant position.<\/p>\n

The Commission examines these criteria or other discretionary factors related to a dominant position, including the market share of the enterprise or enterprises and the market shares of competitors, the level of actual or potential competition, the growth in supply and demand for the good, barriers that limit or prevent competitors from entering the market or from continuing or expanding their operations therein, the level of the customer\u2019s bargaining power, including its purchasing power, the difficulty or ease of access to production inputs; the financial and non-financial resources of the undertaking and its competitors; the economies of scale and capacity available to the undertaking; and the degree of product differentiation.<\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>The General Authority for Competition (GAC) has issued the Guidance on Abuse of Dominance Assessment, which aims to clarify the GAC's approach based on the Competition Law<\/p>","protected":false},"author":10,"featured_media":52533,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"0","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"amlak_video_sent":"","footnotes":""},"categories":[104],"tags":[],"class_list":["post-52531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislation-and-regulations"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak 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