The General Authority for Competition’s Board of Directors has authorized investigating, researching, gathering evidence and looking into a group of companies including Al-Safwa Cement, Al-Madina Cement, Umm Al-Qura Cement, Al-Jouf Cement, Qassim Cement, Najran Cement, Southern Province Cement, United Industrial Cement, Yamama Cement, Riyadh Cement (Saudi White Cement Company), Cement Arabia, Saudi Cement, Yanbu Cement, and Hail Cement on the basis of violating Paragraph (1) of Article (4) of the Competition Law. Violating this paragraph comprises practices, agreements, or contracts between competing or potentially competing firms that limit competition between establishments, therefore breaching the Competition Law’s regulations. The penalties assigned to each facility will be a financial fine of (10,000,000) ten million riyals. The companies will have to bear the cost of publishing the decisions.
Al-Marsad Newspaper: The Board of Directors of the General Authority for Competition issued its decision approving taking procedures for investigation, research, gathering of inferences and investigation, on companies:
Company names
Al-Safwa Cement, Al-Madina Cement, Umm Al-Qura Cement, Al-Jouf Cement, Qassim Cement, Najran Cement, Southern Province Cement, United Industrial Cement, Yamama Cement, Riyadh Cement (Saudi White Cement Company), Cement Arabia, Saudi Cement, Yanbu Cement, and Hail Cement, as it was proven that they violated Paragraph (1) of Article (4) of the Competition Law.
Violations
Paragraph (1) of Article (Fourth) of the Competition Law issued by Royal Decree No. (M/25) states the following: “Practices, agreements or contracts between competing or potentially competing firms are prohibited, whether the contracts are written or oral. Whether explicit or implicit, if the objective of these practices and agreements or establishments that enjoy a dominant position is any practice that limits competition between establishments, in accordance with the conditions and controls set out in the regulations, especially the following: Controlling the prices of goods and services intended for sale by increasing or decreasing, or Installation, or in any other way detrimental to project competition.
Fines
The decisions included the imposition of financial fines of (10,000,000) ten million riyals on each facility, with the decisions being published at its expense.
This decision by the General Authority for Competition to investigate and impose fines on various cement companies highlights the importance of fair competition in the market. It serves as a reminder to all businesses to avoid violating the laws and regulations put in place to encourage healthy competition. As consumers, we benefit from a competitive market that offers a range of choices and fair prices. With this decision, we hope to see a stronger commitment to fair competition and the protection of consumers’ rights in the future.