Two IT firms fined SR6m over collusion in Saudi Arabia

Cairo: A Saudi state anti-trust agency has announced it is imposing more than SR6 million in fines on two information technology companies found guilty of violating the kingdom's competition law by colluding in connection with government tenders. This is the latest in a series of legal actions against monopolistic practices.

One company has been fined SR6 million, while SR19,950 has been imposed on the other, according to the General Authority for Competition. Both companies were named after final rulings were issued against them by an administrative appeals court. They were convicted of collusion in bids submitted for government adjudications.

Several companies fined

Saudi authorities have recently imposed penalties on several companies found implicated in monopolistic acts.

Earlier this month, Saudi authorities imposed a total of SR91.1 million in fines on six gypsum companies over colluding in price fixing.

A total of SR6.4 million was imposed in August on contracting companies for having breached the kingdom's competition law by getting involved in collusion in their price offers for government adjudications.

Also in August, the General Authority for Competition announced imposing SR77.5 million on other contracting companies implicated in committing violations through collusion and coordination among themselves in government tenders. The agency said it would fully publish the decision after it becomes final.

In June, the same authority announced slapping SR14.8 million on six companies operating in transporting cars and other goods after they were found involved in agreeing among themselves to hike up prices.

In April, the agency penalised 14 cement companies with a fine of SR10 million each for colluding to raise cement prices and monopolise the market.

The agency has recently warned that companies involved in collusion related to tenders and offers are subject to a fine of 10% of their total annual sales.