Saudi Gazette report
RIYADH — Saudi Arabia’s Ministry of Commerce and the Normal Authority for Competitors have just lately held a number of conferences to handle the rising focus within the automotive sector, notably concerning the registration of extra dealership agreements for automotive distribution.
Sources informed Okaz that the Competitors Authority has begun reviewing market focus ensuing from new distribution agreements, in coordination with the Ministry of Commerce.
The authority has began receiving functions from corporations searching for to register such vertical agreements, with plans to launch a complete information to assist corporations adjust to competitors laws and keep away from anti-competitive practices.
The transfer follows the authority’s latest investigation into entities working in automotive gross sales, after-sales providers, and spare components, the findings of which have been submitted to greater authorities. It’s now inspecting potential financial focus instances within the sector.
In 2023, the authority introduced expenses in opposition to 79 corporations, together with brokers and distributors, for partaking in anti-competitive conduct reminiscent of price-fixing and dividing markets by geographic area.
Legal instances had been filed in opposition to 64 companies, whereas 15 submitted settlement proposals beneath overview.
The developments come because the automotive market in Saudi Arabia sees elevated regulatory scrutiny. In a latest case, the Ministry of Commerce ordered a automotive company to cancel an unlawful coverage requiring full upfront fee on the time of reserving.
The ministry has since mandated that dealerships request solely a partial down fee to substantiate bookings and summoned the violating company for additional authorized proceedings.