Competition Authority announces Penalties against Saudi ‎Engineering Union Company and Marwan Al-Mutlaq & Fahd Bu ‎Nohayya Consulting Engineers ‎

Pursuant to the mandate of the General Authority for Competition with regard to the enforcement of the Competition Law; and as part of its role in protecting and encouraging fair competition and combating monopolistic practices; and in order to establish the principle of transparency in proceedings;GAC wishes to explain that, based on preliminary indications suspect that a number of entities may have violated the Competition Law by colluding in bids and auctions, which as a violation of section (7) under Article (4) of the Competition Law issued under Royal Decree No. (M/25) dated 04/05/1425 H.The Board of Directors issued a decision to investigate, research, collect evidence, and interrogate. The collection of evidence, information, and investigations proved that Saudi Engineering Union Company for Engineering Consultations Khatib & Alami and Marwan Al-Mutlaq & Fahd Bu Nohayya Consulting Engineers Company violated Competition Law. As a result, The Resolution Committee issued its decision to penalize Saudi Engineering Union Company for Engineering Consultations Khatib & Alami and Marwan Al-Mutlaq & Fahd Bu Nohayya Consulting Engineers Company to section (7) under Article (4) of the Competition Law issued under Royal Decree No. (M/25) dated 04/05/1425 H. stipulating: “Practices, agreements or contracts among current or potential competing firms, whether the contracts are written or verbal, expressed or implied shall be prohibited, if the objective of such practices, agreements or contracts, or consequent impact thereof is the restriction of commerce or violation of competition among firms. A firm or firms enjoying a dominant status shall also be banned from carrying out any practice which restricts competition among firms, in accordance with the conditions and rules specified in the Regulations, especially the following:7- Influencing the normal price of sale, purchase, or supply quotations of commodities and services whether in government or nongovernment bids and auctions.”The decision included a penalty of (5,000,000) Five Million Riyals each, and publishing the penalty in media outlets at its own expense. The Administrative Court of Appeal in Riyadh issued a decision to dismiss the appeal filed by the entities against the Committee for Review and Adjudication of Competition Law Violations decision in case No. (4562) of 1443H and case No. (4452) of 1443H.In addition, the GAC appeals to all entities subject to the Competition Law and its Implementing Regulations to abide by them and to apply their provisions that encourage consumer choices and promote market development and efficiency with justice and transparency.GAC calls on all entities to read the Compliance Guide via the official website: www.gac.gov.com