Saudi Arabia 2004
Score = 17
Governed by: Competition Law (Royal Decree No. M/25) of 22 June 2004[1] (herein after referred to as Competition Act).[2]
| Category | Subcategory | Score | Comment |
|---|---|---|---|
| Scope | Extraterritoriality | 1 | Article 3 extends the Act's reach to any firm working withing Saudi Arabia's borders. |
| Remedies | Fines | 1 | Article 15 grants the competition council the power to impose fines. |
| Prison Sentences | 0 | ||
| Divestitures | 1 | Article 16 allows the council to force a firm to "dispose of some of the assets, shares or proprietary rights, or to undertake any other action to remove the violation’s effects." | |
| Private Enforcement | 3rd Party Initiation | 1 | Article 18 states that "Any natural or corporate person harmed by practices prohibited under the provisions of this Law may apply for compensation before the competent judicial body." |
| Remedies Available to 3rd Parties | 1 | Article 18 allows any person harmed by prohibited conduct to "apply for compensation before the competent judicial body" | |
| 3rd Party Rights in Proceedings | 1 | Article 15(3) states that "[a]nyone may file a grievance against the committee’s decisions with the Board of Grievances . . ." | |
| Merger Notification | Voluntary | 0 | |
| Mandatory | 3 | Article 6 requires notification at least 60 days prior to completion of the merger. | |
| Pre-merger | 2 | Article 6 requires notification at least 60 days prior to completion of the merger. | |
| Post-merger | 0 | ||
| Merger Assessment | Dominance | 0 | |
| Restriction of Competition | 0 | ||
| Public Interest (Pro D) | 0 | ||
| Public Interest (Pro Authority) | 0 | ||
| Other | 0 | ||
| Efficiency | 0 | ||
| Dominance | Limits Access | 1 | Article 5(2) prohibits "imposing restrictions on the supply of a commodity or service" |
| Abusive Acts | 0 | ||
| Price Setting | 1 | Article 4(1) prohibits price setting. | |
| Discriminatory Pricing | 0 | ||
| Resale Price Maintenance | 0 | ||
| Obstacles to Entry | 1 | Article 5(4) prohibits "refusing to deal with another firm without justification in order to restrict its entry into the market." | |
| Efficiency Defense | 1 | Article 4 has a broad efficiency defense for both cartels and dominant firms. | |
| Restrictive Trade Practices | Price Fixing | 1 | Article 4(1) prohibits price fixing. |
| Tying | 1 | Article 5(3) prohibits tying arrangements made by dominant firms. | |
| Market Division | 1 | Article 4(6) prohibits dividing a market according to geographic regions. | |
| Output Restraint | 1 | Articles 4(8) and 4(2) prohibit output restraints. | |
| Market Sharing | 0 | ||
| Eliminating Competitors | 0 | ||
| Collusive Tendering/Bid-Rigging | 1 | Article 4(7) prohibits "[i]nfluencing the normal price of sale, purchase, or supply quotations of commodities and services whether in . . . bids or auctions" | |
| Supply Refusal | 1 | Article 4 prohibits "depriving ... certain firm or firms of commodities and services available in the market." | |
| Efficiency Defense | 1 | Article 4 has a broad efficiency defense. |
References
- ↑ Though it did not come into force until 31 December 2004; see: http://www.globalcompetitionforum.org/asia.htm#Saudi
- ↑ http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTLAWJUSTICE/EXTCOMPLEGALDB/0,,contentMDK:21040081~pagePK:2137398~piPK:64581526~theSitePK:2137348,00.html