The Saudi Competition Law and its implementing regulations prohibit a wide range of activities it considers anti-competitive. These anti-competitive activities include entities with a “Dominant Position” (40%+ market share) abusing its position to affect or restrict competition in the market and a range of other actions by any entity (whether or not it is dominant), such as price fixing and preventing the entry of a new competitor into the market.
The Board of the General Authority for Competition (“GAC”) may, upon a recommendation from a Technical Committee formed for the purpose, approve a formal application for exemption from the above restrictions on anti-competitive behavior submitted by any entity. An exemption will only be granted if it would improve market performance or the entity’s performance in relation to product quality, technological development, or efficiency, provided that the benefits realized by consumers as a result of the exemption are considered to outweigh any negative impact on the free competition.
The team at Z&Co. has wide experience engaging with governmental authorities like the GAC, on a range of matters, including the application of the restrictions in the Competition Law on proposed structures and activities.