Competition Authority identifies potential violations in Saudi Arabia’s automotive sector

Saudi Gazette report

RIYADH — The General Authority for Competition (GAC) has monitored a number of possible violations of the Competition Law in the automotive sector.

This has been revealed following investigations conducted by the authority after implementing a comprehensive analytical study of supply chains in the automotive sector, in cooperation with a number of experts in the field.

The analytical study has included retail sales, spare parts, and after-sale service.

This comes with the aim to identify market structures, the behavior of establishments operating in the market, and its impact on competition. The study is based on observed practices that may be harmful to competition in the automotive sector, spare parts, and after-sale service.

After identifying potential violations, GAC conducted extensive investigations in the sector, including supply chains, based on the Competition Law, which prohibits all forms of agreements between establishments, and any practices that would prejudice competition or affect consumer welfare in the automotive sector and related activities.

GAC confirmed that it will take legal measures to initiate criminal cases regarding the observed violations.

The authority called on all establishments operating in the automotive sector to comply with the Competition Law and the importance of correcting their status to ensure compatibility with the principles of fair competition.