JEDDAH: The Saudi Competition Council fined 23 retail companies SR112 million during the past two years, after they violated competition laws, or conducted illegal monopolistic practices or price manipulation, and defamation, based on Article 12 of the Competition Law.

The total fines for this year amounted to SR42 million against five retailers, ranging from SR3 to SR15 million on each company, most of which were concentrated between soft drinks, sugar, rice, and production of medical and industrial gases.

The total fines the Competition Council levied last year amounted to SR70 million against a number of companies which violated competition laws as the total number of cases filed with the Board of Grievances reached 80.

The council issued 21 final rulings during the past fiscal year, by the administrative Court of Appeal in Riyadh.

One of the telecommunications companies was fined SR10 million for blocking services for competitors’ clients, not activating roaming services, and blocking international calls.

The Competition Council pointed out, through its annual report, the obstacles facing the commercial system, represented by the lack of data for economic activities, such as the size of key products in Saudi markets, and the lack of cooperation of some facilities in providing the necessary data, which may hinder accomplishing the examination of issues, initiatives and requests for economic information.

The council said that the weakness of financial incentives compared to other organizations, complicates attracting distinctive competencies, in light of the shortage of cadres and the scarcity of specialists in the legal system for competition and economic fields, and the difficulty of monitoring all markets, where the widening and the great diversity of products constitutes a burden on the board.

The council stressed that the trade privileges granted by the state, to benefit certain facilities in the field of economic activities, has great importance and constitutes a powerful constraint. The competition system aims to protect and encourage fair competition so as to combat monopolistic practices that affect lawful competition.

These companies are forbidden from any practice restricting competition between companies, controlling of commodities’ prices, limiting the free flow of goods and services to markets, or taking services or products out of market completely or partially.