14 Cement Companies in Saudi Arabia Fined USD37.32 Million for Price Collusion
Date
4/12/2023 3:03:14 AM
(MENAFN) Saudi Arabia's General Authority for Competition (GAC) has imposed a collective fine of SR140 million (USD37.32 million) on 14 cement companies for colluding to raise cement prices in the Kingdom. The GAC has fined each producer SR10 million for manipulating prices, violating Article 4 of the Competition Law, which prohibits practices, agreements, or contracts among competing firms that control the prices of goods and services intended for sale by increasing or decreasing them to harm the market.
The companies penalized include Al Safwa Cement Co., City Cement Co., Al-Jouf Cement Co., Umm Al-Qura Co., Qassim Cement Co., Najran Cement Co., Southern Province Cement Co., United Cement Industrial Co., Yamama Cement Co., Riyadh Cement Co., Arabian Cement Co., Saudi Cement Co., Hail Cement Co., and Yanbu Cement Co., as revealed in a release by the authority. The GAC received complaints that several cement companies had manipulated prices to benefit themselves, leading to an investigation into these claims.
The GAC board found that these companies violated the Competition Law by raising cement prices, leading to the imposition of fines. The resolutions were published at the expense of the violators, and all of them were final, as the Administrative Court of Appeal in Riyadh dismissed the challenges filed by these firms. The GAC has also called upon all establishments to abide by the Competition Law and its regulations to encourage consumer choices and support market growth and efficiency within a framework of fairness and transparency.
Earlier this month, the GAC also imposed penalties against two enterprises for collusion in a project at Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, with a total fine of SR2.11 million. Moreover, in March, the antitrust regulator increased the minimum turnover threshold for merger control filings from SR100 million to SR200 million, which should reduce the number of unnecessary notifications.
The GAC's decision to increase the notification threshold is based on its annual review of policies, taking into account international best practices, aspects relating to the variables of the national economy, and the level of market competitiveness. The GAC noted that the decision would facilitate procedures and alleviate financial burdens, especially on small and medium-sized companies.
In summary, the GAC has imposed a collective fine of SR140 million on 14 cement companies in Saudi Arabia for colluding to raise cement prices in the Kingdom. The GAC's decision is based on its investigation into claims that these companies violated the Competition Law. The antitrust regulator has also called upon all establishments to abide by the Competition Law and its regulations to support market growth and efficiency within a framework of fairness and transparency.
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