A Comparative Analysis of the New Competition Law in Saudi Arabia and the Previous Competition Law Established in 2004

Abstract

Competition Law of 2004 has been enacted in Saudi Arabia, and it governs all entities, excluding the public organizations and wholly-state owned corporations. After the implementation, the law did not meet the intended goals due to modern challenges facing the Saudi Market. This led to the government’s introduction of the New Competition Law in 2019. The focus of this research was to compare the previous Competition Law (2004) and New Competition Law (2019), determine the major significant changes made on the new competition law, and the effectiveness of the new competition law in promoting fair competition and preventing anti-competitive practices. A narrative literature review was conducted to provide a comprehensive comparative analysis of the two laws. The research revealed that both previous Saudi Competition Law (2004) and New Saudi Competition Law (2019) aim at protecting and encouraging fair competition, regulate mergers and acquisitions to protect against monopolies and cartels, and outlaw unfair competition practices. Besides, both laws allow penalties for those violating the law. However, the study found that the previous law requires anti-competitive practices between potential and actual competitors while the new law prohibits contracts and agreements if the aim of the practices constitutes a violation of competition. Also, the new law has introduced rules governing leniency and settlement, which were not found in the previous law. In conclusion, implementing the new law may help address the faults in the previous law. The new law may help promote fair competition and avoid monopolistic actions that can negatively influence consumers’ interests. Implementing the new law may also help improve Saudi Arabia’s market environment and economic development.