Investigations and Judicial Procedures under the Saudi Competition Law and its Implementing Regulations
Competition Focus
The Kingdom of Saudi Arabia has made significant strides in fostering a competitive market environment through the enactment and enforcement of the Competition Law, promulgated by Royal Decree No.
Law Update: Issue 374 – Competition Focus
Emad SalamehPartner, Head of Office - Riyadh
Ahmed AmonetteSenior Associate,Dispute Resolution
Mohamed Said GoharLegal Consultant,Dispute Resolution
The Kingdom of Saudi Arabia has made significant strides in fostering a competitive market environment through the enactment and enforcement of the Competition Law, promulgated by Royal Decree No. M/75 (2019), and its Implementing Regulations issued by the General Authority for Competition (GAC).
The legal framework aims to protect and encourage fair competition, prevent monopolistic practices, and regulate economic activities within the Kingdom.
This article focuses on a critical aspect of this framework, which is the robust mechanism for investigations and judicial procedures, put into place to ensure compliance and address violations effectively.
The GAC is vested with extensive powers to investigate potential violations of the Competition Law. These powers are crucial for maintaining market integrity and ensuring that anti-competitive practices are promptly identified and addressed.
Investigations can be initiated by the GAC based on complaints, reports, or its own initiative. Any natural or corporate person can file a complaint or report anti-competitive practices to the GAC, even if they are not directly aggrieved. The GAC also conducts periodic market inspections and requests necessary data and information from commercial establishments to monitor compliance.
Upon receiving a complaint or report, the GAC conducts a preliminary examination to determine whether there is sufficient evidence to warrant a full investigation. The findings are then submitted to the GAC Board of Directors, which decides whether to proceed with inquiry, evidence gathering, and investigation or to close the matter.
In cases of urgency, where there is a potential for serious and irreparable damage to competition or consumer interests, the Chairman or the Governor of the GAC can issue a decision to initiate inquiry, evidence gathering, and investigation procedures immediately. Such decisions must be presented to the Board at the first meeting following their issuance.
Law enforcement officers and investigators play a pivotal role in enforcing the Competition Law. They are empowered to apply the Law and Regulations, conduct inquiries, gather evidence, and investigate potential violations.
Powers of Law Enforcement OfficersLaw enforcement officers have the authority to:
Examine and review complaints, reports, and referrals.
Communicate with complainants for clarification and request further evidence.
Enter and search the premises, offices, and branches of firms during normal working hours.
Access books, records, papers, and documents, including electronic data, and take copies thereof.
Document and confiscate items relevant to the investigation.
Powers of InvestigatorsIn addition to the powers of law enforcement officers, investigators can:
Summon relevant firms or their representatives for statements and interviews.
Conduct investigations and interviews at the GAC headquarters, the firm's premises, or any other appropriate location. The investigations and interviews may be documented in audio and video recordings.
Rely on and verify evidence provided by firms applying for leniency or settlement.
Use all means of proof, including electronic data, telephone recordings, and email correspondence.
The GAC's robust investigative powers, coupled with the judicial procedures of the Committee, ensure that violations are effectively identified, adjudicated, and penalized.
The judicial procedures under the Competition Law are designed to ensure that violations are addressed through a fair and transparent process. The Committee for Adjudication of Competition Law Violations (the Committee) is responsible for adjudicating cases and imposing penalties.
Formation and Jurisdiction of the CommitteeThe Committee is formed by the Board of Directors of the GAC and comprises five independent members, including legal specialists. The Committee has jurisdiction to decide all cases arising from the application of the Competition Law and its Implementing Regulations, except for specific violations referenced in the Competition Law relating to the impartiality and integrity of the GAC’s own operations.
Hearing and Decision-Making ProcessThe Committee convenes with a majority of its members, including the Chairman or his deputy. Hearings are generally public unless the Committee decides to hold them in private. The proceedings and pleadings are documented in writing, and the Committee may hear statements and arguments verbally.
Evidence and WitnessesThe Committee can summon witnesses and request documents and information from governmental and other bodies. It may also seek the assistance of specialists or experts to review cases. Evidence can be established through various means, including electronic data and recordings.
Issuance and Appeal of DecisionsThe Committee issues its decisions after deliberating the case. Decisions become final after 30 days if not appealed by the defendant before the competent court. If an appeal is filed, the appellant must inform the GAC within three working days. Committee decisions relating to fines and measures take effect immediately upon issuance unless stayed by a court order.
Publication of DecisionsThe decision on violations is published at the expense of the violator after becoming final. The Board may specify cases where publication is not mandatory.
The Saudi Competition Law and its Implementing Regulations provide a comprehensive framework for investigating and addressing anti-competitive practices. The GAC's robust investigative powers, coupled with the judicial procedures of the Committee, ensure that violations are effectively identified, adjudicated, and penalized. This framework not only protects fair competition but also promotes a transparent and competitive market environment.
For further information,please contact Emad Salameh, Ahmed Amonette, or Mohamed Said.
Published in February 2025
