Saudi Arabia: Implemented GAC Implementing Regulations for the 2019 Competition Law including merger control regulation

On 24 September 2019, the Authority Board of Directors, through Resolution 337 approved the Implementing Regulations issued by the General Authority for Competition (GAC). The three mechanisms that trigger an approval requirement are 1) "economic concentration," i.e. transactions resulting in a change of control over the target entity, 2) turnover thresholds, i.e. transactions by parties with a combined worldwide annual turnover exceeding SAR 100 million (USD 26.6 million), or 3) a potential “effect in Saudi Arabia”, presumed by the GAC if parties have domestic sales, assets, or future business plans. When investigating "economic concentration" requests or other anti-competitive behaviour by companies, the GAC may inquire about involved suppliers, purchases, price changes as a result of company behaviour, and effects on trade. Additionally, the GAC may evaluate the effect on innovation, product diversity, and user benefits. The Implementing Regulations then outline the specific protocol for "economic concentration" requests through the GAC, including possible decisions, reconciliation opportunities, and data collection measures. These measures range from public surveys to raids and seizure of documents.