Enhancing Saudi Arabia’s Competition Law: Addressing Anti-competitive Practices in the Digital Markets

Abstract

Traditional Competition Laws prove inadequate for regulating digital markets, which are characterised by unique features such as zero-price markets, multi-sided platforms and network effects. Digital markets significantly contribute to technological developments by introducing new business models and innovations that benefit both individuals and businesses and play a key role in vital sectors such as healthcare and finance. However, these markets also raise concerns such as market concentration, algorithmic risks, excessive data gathering, self-preferencing, and abuse of gatekeeping position. Consequently, several jurisdictions have recognised the necessity to amend or introduce new regulations to regulate competition in digital markets. This dissertation aims to critically examine the adequacy of the current competition law in Saudi Arabia for regulating digital markets. This dissertation adopts doctrinal and comparative legal research methodologies to critically evaluate the current competition framework in Saudi Arabia and compare it with global best practices to propose reforms. Through a comprehensive analysis it identifies shortcomings in the current framework, particularly the inadequacy of market power definition, provisions for anti-competitive practices in digital markets and penalties. The dissertation findings suggest that the Saudi Competition Law lacks specific provisions for addressing anti-competitive practices in digital markets. This study proposes reforms to enhance the current framework, including establishment of an expert digital unit to ensure stringent enforcement, adoption of broad criteria to define market dominance and specific provisions for digital anti-competitive practices. These reforms are essential for ensuring fair competition and protecting consumers in digital markets.