NEWS ALERT!

What Happened: On 29 December 2025, the Saudi General Authority for Competition (GAC) announced fines totalling SAR 36,918,885 against 13 establishments for prohibited price-fixing agreements.

Why It Matters: The enforcement actions span multiple sectors, signaling GAC’s broad oversight and commitment to enforcing Article 5(1) of the Saudi Competition Law. The public disclosure of penalties aims to increase transparency and deter anti-competitive conduct.

What to Do: Immediately review pricing policies, discount structures, and communications with competitors. Re-train sales and procurement teams on antitrust compliance and ensure robust documentation protocols are in place.

Enforcement Snapshot

On 29 December 2025, the GAC announced significant fines against 13 establishments for violating Article 5(1) of the Competition Law. The penalties, totaling SAR 36,918,885, targeted companies in the retail pharmacy/baby care, municipal waste and recycling, wholesale medical supplies and dairy, and advertising/media representation sectors. The public announcement underscores GAC’s policy of transparency to deter anti-competitive behavior.

Legal Basis and Penalty Framework

The GAC’s actions are grounded in the Saudi Competition Law (Royal Decree No. M/75 of 1440H).

• Prohibition: Article 5(1) of the Competition Law prohibits all agreements-written or oral, explicit or implicit-that fix or suggest prices, service fees, or other terms of sale.
• Penalties: Under Article 19, violations are punishable by a fine of up to 10% of the total annual sales value of the activity subject to the violation, or up to SAR 10 million if annual sales cannot be estimated. Alternatively, the Committee may impose a fine of up to three times the illicit gains. Fines may be doubled for recidivism within three years.
• Additional Measures: Post-decision, Article 21 empowers the Board to order divestitures, impose daily fines of up to SAR 10,000 for non-compliance, or order the temporary closure of an establishment for up to 30 days if violations persist.
• Publication: Final decisions may be published at the violator’s expense, as stipulated in Article 19(4).

Process, Rights, and Leniency

The GAC Board of Directors approved referrals for administrative adjudication before the Committee for Adjudication of Competition Law Violations. Decisions of the Committee may be appealed to the competent court within 30 days of notification. Furthermore, Article 23 of the Competition Law establishes pathways for settlement and leniency. The Board may refrain from referring a violator that provides evidence implicating accomplices and may accept settlements under conditions set forth in the Implementing Regulations.

Why This Matters for Your Business: Sector-Specific Risks

• Pharmacy & Retail: Resale price maintenance, alignment on list prices, and coordinated promotions create significant risk under Article 5(1), even without a formal agreement.
• Waste & Recycling: This sector is exposed to bid collusion risks under Article 5(8) and market allocation by territory under Article 5(6).
• Wholesale (Medical & Dairy): Risks include coordinated supply caps, allocation of customers or territories, and the use of uniform discounting frameworks.
• Advertising & Media: Coordinated rate cards and synchronized fee floors are key risk areas.

Practical Steps for Compliance

• Immediate Audit: Review all price communications, discount and rebate structures, and conditions attached to trade spend.
• Tender Hygiene: Reconfirm bid independence protocols and information barriers between competitors.
• Document Controls: Reiterate prohibitions on concealing or destroying records. Article 16 forbids obstructing GAC investigations, providing misleading information, or destroying documents.
• Assess Leniency Options: If implicated in anti-competitive conduct, promptly evaluate eligibility for cooperation and settlement pathways under Article 23.

Looking Ahead

These enforcement actions signal GAC’s continued vigilance across diverse sectors. Businesses should anticipate sustained scrutiny of pricing conduct, an increasing trend of public disclosure of violations, and calibrated fines designed to have a strong deterrent effect.

Authors: Asad Ahmad, Head of Anti-Trust and Competition and Khaled Al-Khashab, Associate.