56 Saudi firms fined for price manipulation
Riyadh, April 6, 2014
Fifty-six Saudi companies were fined SR222 million ($59.18 million) for price manipulation by the Ministry of Commerce and Industry's competition commission, a report said.
Companies have the right to become dominant players in a particular market, but they cannot abuse their position by imposing unfair and discriminatory trade conditions on suppliers or distributors, setting unfair increases, using aggressive pricing to drive out new competitors, or resorting to methods that harm economic enterprises or consumers, Mohammed bin Abdullah Al-Qasim, secretary-general of the commission, was quoted as saying by the Arab News report.
Al-Qasim said the government wants to encourage competition, and eradicate business practices that restrict it.
He said the commission was investigating medical gas suppliers following a complaint from the Ministry of Health that suppliers had raised prices from SR38 million to SR117.4 million after three years.