Saudi Arabia: Adopted Competition Law 2019 including establishment of General Authority for Competition

On 5 March 2019, the Competition Law was adopted by the Council of Ministers, which would replace the previously enforced Competition Law from 2004. The 2019 law applies broadly domestically and abroad to commercial entities that might "have an adverse effect on fair competition within the Kingdom". The previous governance authority was called the "Competition Council" with limited enforcement powers. The newly introduced General Authority for Competition (GAC) has broader jurisdiction to monitor anti-competitive behaviours and mergers. Additionally, the GAC would now be considered an independent regulatory body. As for the merger control procedure, companies are required to notify the GAC of an intent of "economic concentration". They will be subject to a waiting period of at least 90 days where all transactions are prohibited while the GAC evaluates the request. The GAC reserves the right to request additional documents, which may extend the waiting period. The GAC, once it receives a request for "economic concentration" and infractions are found, may initiate criminal proceedings, suspend operations for a certain amount of time, impose corrective orders, and impose fines. The fines are calculated based on the relevant parties' turnover. Amnesty may be granted through their leniency program if the relevant party divulges information on "accomplices in that violation" or if a settlement is reached with the other participants. Finally, the GAC will release detailed regulations pertaining to this law.