RIYADH, 26 July — The Kingdom’s higher authorities are studying a draft law proposed by the Commerce Ministry to prevent monopoly, unfair competition and exclusive agencies in the country. The new law aims at encouraging fair competition and creating an economic atmosphere conducive to efficiency and equal opportunities.
Amr ibn Rajab, assistant deputy undersecretary at the ministry for legal affairs, told Arab News that the new law would prevent monopolies that harm free production, distribution and trade of products and services and other monopolistic trends in the market.
He said the law, which has 25 articles, also bans exclusive agencies in the Kingdom, adding that the implementation of the law would be supervised by a seven-member council for combating unfair competition.
However, public establishments owned by the state or those institutions managed by the government will be excluded from the law. Rajab said the law would not only benefit consumers but also improve the quality of products and services.
The ministry earlier presented to the higher authorities for approval two other laws related to dumping and protective tariffs.
The two laws aim at protecting national industries, strengthening confidence in the economy and preventing acts which cause damage to national industry. Rajab said the new measures would also help attract foreign capital and repatriation of Saudi funds.
The ministry has consulted specialized international organizations and the Council of Saudi Chambers while preparing the law to combat unfair competition.
Rajab said the new law prevents agreement between commercial establishments and traders that are designed to hamper fair competition, control prices of products or prevent free movement of goods in the market or prevent any person from using his right to enter or get out of or share the market.
The new law also prevents commercial institutions from dominating the market or controlling a maximum of 35 percent of the market. It also bans mergers with the intention of controlling the market. However, Rajab said the law allows mergers that would help strengthen the economy and would not come in the way of fair competition.
