Riyadh Saudi Arabia
An aerial view shows the highway on the first day of Eid Al Fitr in the Saudi capital Riyadh, on May 24, 2020. Image Credit: AFP

Abu Dhabi: Three major construction companies have been fined SR50,000 each for breaking competition laws, following an investigation by Saudi Arabia’s Competition Authority,

The regulator found that the companies — Al Raifa Contracting Est., Abaq Al Atheer Contracting Est. and Afaq Foundation for Construction of Buildings Contracting — colluded illegally to reduce competition and increase prices in Al Lith Municipality’s tenders.

This involved sharing confidential information on future pricing and commercial strategy. They also coordinated their commercial activities to reduce uncertainty, including monitoring each other’s prices and challenging quotes they deemed too low, the authority said in a statement.

The decision included publishing the sanctions in the media.

The announcement shows that the authority continues to crack down on illegal cartel behaviour and protect consumers. The authority will not tolerate illegal conduct, which weakens competition and keeps prices up at the expense of consumers, the statement said.

The authority urged people to come forward if they suspect a business has taken part in illegal behaviour.