Saudi Arabia Imposes SR6.4 Million Fine on 14 Companies for Collusion in Government Contracts

The General Authority for Competition takes decisive action against firms violating competition laws, marking the second major crackdown in less than a month.

Saudi Arabia’s General Authority for Competition has announced the imposition of fines totaling SR6.4 million on 14 contracting companies for breaching the country’s competition laws. These penalties are the result of final rulings issued by an administrative appeals court in Riyadh, following an investigation into collusion over pricing for government contracts.

This enforcement action marks the second significant measure taken by the agency in less than a month, underscoring its commitment to maintaining fair competition and preventing monopolistic practices that could harm the market and consumers.

Earlier in the month, the same authority imposed fines exceeding SR77 million on other contracting companies found guilty of similar collusion and coordination in government tenders. The committee responsible for overseeing violations of competition laws issued these penalties, and the Authority has indicated that it will publish the full details of the decisions once they are finalized.

In recent months, the General Authority for Competition has been active in cracking down on anticompetitive behavior across various sectors. In June, the agency levied SR14.8 million in fines on six companies involved in the transportation of cars and goods after discovering they had conspired to inflate prices. Similarly, in April, the Authority fined 14 cement companies SR10 million each for colluding to manipulate cement prices and dominate the market, actions that directly contravened Saudi Arabia’s competition laws.

In these cases, appeals filed by the companies were dismissed by a court in Riyadh, solidifying the fines and reinforcing the agency’s role in promoting transparency and accountability within the Kingdom’s business environment. The companies were also mandated to publicly disclose the penalty decisions at their own expense, further emphasizing the government’s stance against such practices.