The Council of Competition Protection (CCP) has fined several soft drink companies SR135 million for price collusion and various other anti-competitive practices.
The CCP said in a press statement released recently that the companies violated the country’s Competition Law by colluding to raise prices, forcing clients not to deal with other competitors, imposing terms and conditions on selling and buying transactions, limiting price reductions and agreeing to divide the market into geographical areas.
The CCP said it had proof that the companies violated articles of the Competition Law. The fines would be doubled if the firms repeat the offences. The firms will also have to publish the decision against them at their own expense.
“Each violation of the provisions of this law shall be subject to a fine not exceeding SR5 million,” Article 12 of the law states.
The CCP stated that it is committed to ensuring that there is fair competition among firms in the country that would benefit consumers.
The CCP is an independent legal entity chaired by Minister of Commerce and Industry Tawfiq Al-Rabiah, and includes representatives from the Ministries of Finance, Economy, Planning, Commerce and Industry, Saudi Arabia General Investment Authority (SAGIA) and four independent members with expertise in the field.
Soft drink firms fined SR135m for price fixing
