SAUDI ARABIA Law and Practice Contributed by: Dana Halwani and Leanne Farsi, Derayah LLPC
• the basic information concerning the opera - tion of the economic concentration and the parties thereto; • the sectors and markets concerned; • the likely effect of the economic concentra - tion on competition generally; • the most prominent customers; and • the most prominent competitors. The report must also contain any other data the GAC requires to review the economic concen - tration. Certain documents must also be submitted to the GAC in connection with the buyer, seller and target entities, namely: • their articles of association; • their commercial registration certificate or an equivalent document; and • their financial statements for the past two years. Once the report and required documents are received, the GAC may publish basic informa - tion on the economic concentration and request comments from the public. The GAC must evalu - ate the application in light of the following fac - tors: • the structure and level of competition in the market in Saudi Arabia, and abroad in situa- tions where the competition has an impact on the Saudi market; • the financial positions of the parties to the economic concentration; • the availability and accessibility of alternative commodities; • the distinctness of the commodities; • consumer interests and welfare;
• the probable effect of the economic con - centration on prices, quality, diversification, innovation or development in the market; • advantages and disadvantages to competi - tion arising from the economic concentration; • the growth and direction of supply and demand in the market; • the barriers to entry and exit or the expansion of enterprises in the market, including regula - tory barriers; • the likelihood that the economic concentra - tion will create or enhance influential market strength or the dominant position of the enterprise in any particular markets; • the degree and history of practices prejudicial to competition in the relevant market; and • the views of the public, the parties related to the economic concentration, and the sector regulators. At the conclusion of the enquiry, the GAC may approve or reject the application, or may set conditions for its approval. If no ruling is made within 90 days of submission of the application, the application is deemed to be approved. 6.3 Cartels Article 5 of the 2019 Competition Regulation pro - hibits practices that have the effect or intention of disturbing competition. Such practices can involve express or implied agreements between businesses, but a single entity can also be guilty of engaging in anti-competitive practices. Article 5 sets out a non-exclusive list of practices that are considered anti-competitive, as follows: • fixing or proposing prices for goods, con - sideration for services, conditions of sale or purchase, and the like;
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