Saudi Cabinet, presided over by Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, approved the new competition law, after review of the recommendation prepared by the Council of Economic Affairs and Development.
Public Authority for Competition stated that the law aims at promoting the environment of competition and control of monopolistic practices in markets, sustainability of economic growth and creation of attractive investment environment to achieve justice of prices and to raise the levels of transparency, diversity and quality of commodities, and to encourage and sponsor innovation.
The new system stands out for consideration of the rights of market stakeholders and motivation of national industries. It encourages the business enterprises and supports effectiveness of precautionary measures and achieves justice for trader and consumer. The scope of work includes all enterprises working in Saudi markets and all practices that happen outside the Kingdom whenever they have adverse effect on competition inside the Kingdom, which supports realization of the targets of Kingdom Vision 2030 and enhances its investment location regionally and internationally.
General Authority for Competition worked with the related authorities and international expert house on consideration of the opportunities for improvement of the tools and materials of the system and raising proposals for amendment of the new systemic and organizational framework which is commensurate with the international practices and copes with the natural structural and administrative development of the competition council that was established in 1425 AH, and organization of the General Authority for Competition was issued according to it in 1439 AH. This organization enabled financial and administrative independence of the Authority by linking it directly to the Prime Minister.
The new competition law includes updates of formation and organization in its contexts which come in the context of diversification of the effective tools that guarantee for the Authority implementation of fair competition policies in markets with optimum flexibility and effectiveness, and development of the procedures of inspection of the economic concentration requests with the merger and acquisition operations that are required. In addition, the new system included many new rules and procedures, according to the survey studies conducted by the Authority based on the international best practices and experiences.
The new system underwent several stages during its preparation, which included, in addition to the foregoing, of its study in the shura assembly and expert panel in the Cabinet and appropriate related authorities till it was promulgated by royal decree, according to the form to be published in the official gazette (Umm Al-Qura) and its enforcement and application shall start 180 days after the date of publication.
Chairman of General Authority for Competition, Dr. Mohamed bin Suleiman Al-Jasser, said that promulgation of the new competition law is in line with the roles assumed by the Authority which was in charge in the context of its critical job in supervision of markets of all sectors and activities for protection and promotion of fair competition and achievement of best practices in implementation of its policies and application of its fair rules, and creation of climate the motivates investment and contributes to drive the pace of development in business sector, and support the pillars of economic system.
