WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  IP/N/1/SAU/O/1 
17 November 2006 
 (06-5572) 
Council for Trade-Related Aspects 
of Intellectual Property Rights Original:   English/ 
 anglais/  inglés 
 
MAIN DEDICATED INTELLECTUAL PROPERTY 
LAWS AND REGULATIONS NOTIFIED UNDER 
ARTICLE 63.2 OF THE AGREEMENT 
 
SAUDI ARABIA 
  The present document reproduces the text
1 of the Competition Law, which Saudi Arabia has 
notified under Article 63.2 of the Ag reement (see document IP/N/1/SAU/1). 
 
 
Conseil des aspects des droits de propriété intellectuelle qui touchent au commerce  
 
 
PRINCIPALES LOIS ET RÉGLEMENTATIONS CONSACRÉES À LA 
PROPRIÉTÉ INTELLECTUELLE NOTIFIÉES AU TITRE 
DE L'ARTICLE 63:2 DE L'ACCORD 
 
ARABIE SAOUDITE 
  Le présent document contient le texte
1 de la Loi sur la concurrence, notifiée par l'Arabie 
saoudite au titre de l'article 63:2 de l'A ccord (voir le document IP/N/1/SAU/1). 
 
 Consejo de los Aspectos de los Derechos de Propiedad 
Intelectual relacionados con el Comercio  
 
 
PRINCIPALES LEYES Y REGLAMENTOS DEDICADOS A LA PROPIEDAD 
INTELECTUAL NOTIFICADOS EN VIRTUD DEL PÁRRAFO 2 
DEL ARTÍCULO 63 DEL ACUERDO 
 
ARABIA SAUDITA 
 
 En el presente documento se reproduce el texto
1 de la Ley de Competencia, que Arabia 
Saudita ha notificado en virtud del párrafo 2 del artículo 63 del Acuerdo (véase el documento 
IP/N/1/SAU/1). 
                                                      
1 In English only. The text in the original language is available for consultation by interested 
Delegations at the WTO Secretariat./En anglais seulemen t.  Les délégations intéressées peuvent consulter le 
texte dans sa langue d'origine, au Secrétariat de l'OM C./En inglés solamente.  Las delegaciones interesadas 
podrán consultar en la Secretaría de la OMC el texto en su idioma original. 
 IP/N/1/SAU/O/1 
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Competition Law  IP/N/1/SAU/O/1 
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Article One: 
This Law aims to protect and encourage fair competition and combat monopolistic practices 
that affect lawful competition.  
Article Two: 
Whenever they occur in this Law, the follo wing terms shall have the meanings expressed 
next to them unless the context indicates otherwise:  Firm: Factory, corporation or company owned by natural or corporate person(s), and all 
groupings practicing commercial, ag ricultural, industrial or service 
activities, or selling and purchas ing commodities or services. 
 
Market:   Place or means where a group of current and prospective buyers and 
venders meet during a specific period of time. 
 Domination : A situation where a firm or a group of firms are able to influence the 
market prevailing price through cont rolling a certain percentage of the 
total supply of a commodity or service in the industry of its business. The 
Regulations shall specify this percen tage according to criteria which 
include the market structure, the easiness of market entry by other firms, and any other criteria determined by the Council. 
 
Merger:   Amalgamating a firm with another or  the  amalgamation of two or more 
firms into a new one. 
 Council:   Council of Competition Protection. 
 Ministry:   Ministry of Commerce and Industry. 
 
Minister:   Minister of Commerce and Industry. 
 Regulations :  Implementing Regulations of this Law. 
 
 
Article  Three : 
Provisions of this Law shall apply to all fi rms working in Saudi markets except public 
corporations and wholly-owned state companies. 
 
Article Four: 
Practices, agreements or contracts among curre nt or potential competing firms, whether the 
contracts are written or verbal, expressed or im plied shall be prohibited, if the objective of 
such practices, agreements or contracts, or co nsequent impact thereof is the restriction of 
commerce or violation of competition among fi rms. A firm or firms enjoying a dominant IP/N/1/SAU/O/1 
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  status shall also be banned from carrying ou t any practice which restricts competition 
among firms, in accordance with the conditio ns and rules specified in the Regulations, 
especially the following:  
1. Controlling prices of commodities and se rvices meant for sale by increasing, 
decreasing, fixing their prices or in any other manner detrimental to lawful 
competition. 
 2. Restricting freedom of flow of commodities  and services to markets or removing 
them, wholly or partially, therefrom by hi ding, unlawfully storing, or refraining 
from dealing in them. 
 
3. Contriving a sudden abundance of commodi ties and services which results in an 
unrealistic price affecting ot her dealers in the market. 
 
4. Preventing any firm from exer cising its right to enter or move out of the market at 
any time or hampering the same.   
 
5. Depriving, wholly or partially, certain fi rm or firms of commodities and services 
available in the market. 
 
6. Dividing or allocating markets for sellin g or purchasing commodities and services 
pursuant to any of the following criteria: 
 
(a) Geographical regions 
(b) Distribution centers 
(c) Type of clients 
(d) Seasons and time periods. 
 
7. Influencing the normal price of sale, purc hase, or supply quotations of commodities 
and services whether in government or  non-government bids or auctions. 
 8. Freezing or restricting manufacturing, de velopment, distribution or marketing 
processes and all other aspects of investment, or restricting the same. 
 
The Council may choose not to apply provis ions of this Article to practices and 
agreements in violation of competition whic h are believed to improve the performance of 
firms and realize a benefit for the consumer ex ceeding the effects of restricting freedom of 
competition, as specified by the conditions and rules in the Regulations. 
 
Article Five: 
A firm enjoying a dominant status shall be banne d from any practice restricting competition, 
as specified by the Regulations, including:  
1. Selling a commodity or service at a price be low cost, with the intention of forcing 
competitors out of the market. 
  IP/N/1/SAU/O/1 
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  2. Imposing restrictions on the supply of a co mmodity or service, with the intention of 
creating an artificial shortage in its availability in order to raise prices. 
 
3. Imposing special conditions on selling and  purchasing transactions or on dealing 
with another firm, in a manner that puts it  in a weak competitive position compared 
to other competing firms. 
 
4. Refusing to deal with another  firm without justification in order to restrict its entry 
into the market. 
 
Article Six: 
 
1. Firms involved in merger operations or fi rms desiring to acquir e assets, proprietary 
rights, usufructs or shares, which causes th em to be in a dominating position, shall 
notify the Council in writing at least sixt y days prior to completion of the same. 
 2. Competing firms desiring to combine two or more managements into one joint 
management shall, if that results in a dominant status, notify the Council in writing 
at least sixty days prior to completion of the same. 
 
3. The Regulations shall specify times of su ch notification, its form and content, 
information and documents required, procedur es to be followed in submitting it as 
well as the due fees for the inspection thereof.  
 
4. The Council may review all necessary info rmation prior to issuing a decision of 
approval or rejection of the notification submitted thereto, in accordance with the 
provisions of paragraphs (1) and (2) abov e, giving justification in each case.  
 
Article Seven: 
 
The firm referred to in Article Six of this Law may complete the procedures of merger, 
acquisition or combining two or more manag ements into one joint management in the 
following cases:  
1. Upon notification in writing of  the approval by the Council. 
 2. Upon expiration of sixty days from the date  of notification without being notified by 
the Council in writing of its objection to th e deal or of that it is under study and 
investigation. 
 
3. Upon expiration of ninety days from the date of notification with the deal being 
under review and investigation, without bein g notified by the Council in writing of 
its approval or rejection. 
 
Article Eight: 
 
1. An independent council named “Competi tion Protection Council” shall be 
established. It shall be located in the Ministry of Commerce and Industry . 
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  2. A Royal Order shall be issued for the formation of the Council as follows: 
 
• The Minister of Commerce and Industry     Chairman 
• A representative of the Ministry of Commerce and Industry Member 
• A representative of the Ministry of Finance    Member 
• A representative of the Ministry  of Economy & Planning  Member 
• A representative of the General Investment Authority  Member 
• Four members of expertise and competence selected for their merits and nominated 
by the Minister . 
 
3. The term of membership in the Co uncil shall be four years renewable 
for one term. The Council member shall rema in in his post upon expiration of his 
term until a successor is appointed. 
 
4. The Council shall convene headed by the chairman or whomever he 
deputizes of the members and with the atte ndance of two thirds of the members. 
Council’s decisions shall be taken by majority vote, and in case of equal votes, the 
chairman shall have the casting vote. 
 
5. Council members may not disclose an y information they obtain as a 
result of their membership in the Council. 
 
6. A Council member may not participat e in the deliberation of any case 
or subject matter in which he has an interest  or with which he has a relation, or if 
he is related by blood or marriage to an y of the parties involved, or if he has 
represented any of the parties concerned. 
 
Article Nine: 
 
Subject to provisions of other laws, the Coun cil shall have jurisdiction over the following 
tasks:  
1. Approving cases of merger, acquisition, or combining two managements or more 
into one joint management resulting in a dominant position in the market. 
 2. Ordering the undertaking of proceedings of inquiry, research and collection of 
evidence pertaining to complaints and prac tices in violation of provisions of this 
Law, and ordering the investigation and prosecution thereof. 
 
3. Approving the initiation of criminal case procedures against violators of provisions 
of this Law. 
 
4. Forming the Council’s bodies and issu ing the financial and administrative 
regulations, in coordination with the Mini stry of Finance and the Ministry of Civil 
Service. 
  IP/N/1/SAU/O/1 
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  5. Proposing relevant draft laws that affect  competition in light of the variables 
occurring in the market, and proposing nece ssary amendments to provisions of this 
Law. 
 
6. Issuing the Implementing Regulations of this Law. 
 
7. Preparing an annual report of the Council’ s activities and future plans, to be 
submitted to the Council of Minister s by the chairman of the Council. 
 
Article Ten: 
 
The Council shall have a general secretariat pr esided over by a secretary general of the 
Fifteenth Grade. The Council shall be provided  with all necessary facilities and specialized 
experts.  
Article Eleven: 
 
1. The Council shall issue a decision desi gnating the employees who shall have the 
judicial control capacity in implemen ting the provisions of this Law. 
 2. Subject to provisions of other laws, the employees having the capacity of judicial 
control may: 
 
(a) Review complaints submitted to them wh ich are based on actual  evidence in 
accordance with the provisions of this Law, investigate them,  and prosecute 
when reviewing violations of provisio ns of this Law before the committee 
referred to in Article Fifteen and before the Board of Grievances  
 
(b) Review all records, files and docume nts of the firms concerned which are 
relevant to the complaint in question  and obtain photocopies thereof. The 
firm subject of the complaint may not conceal any information on the pretext of confidentiality or for any other reason. 
 
3. The Minister may issue a deci sion assigning some of the Ministry’s staff to perform 
the Council’s technical, financial,  and administrative functions. 
 4. The Council may, when needed, seek the a ssistance of experts and qualified persons 
from outside the Ministry. 
 
5. Council Members and staff shall maintain th e confidentiality of the information and 
records they obtain from firms in the proce ss of collecting evidence or investigations, 
and they may not turn over the same to any  other party except with the approval of 
the Council. 
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  Article Twelve: 
Without prejudice to any harsher  punishment provided by any other law, each violation of 
the provisions of this Law shall be subject to a fine not exceeding five million riyals, to be 
multiplied in case of recurrence. Judgment public ation shall be at the expense of the violator. 
 
Article Thirteen: 
Any person disclosing a secret related to his job shall be punished according to provisions of 
paragraph (5) of Article Eleven of this Law. Anyone realizing a benefit directly or indirectly shall be 
subject to a fine not exceeding five million riya ls or imprisonment for a period not exceeding two 
years or to both of them. 
Article Fourteen : 
Punishments referred to in Articles Twelve and Thirteen shall be determined on a case by 
case basis according to the violatio n committed and the gravity thereof. 
 
Article Fifteen: 
1. The Council shall form a committee of five members one of whom at least shall be a 
legal counselor, and a decision to this effe ct shall be issued by the Minister. Said 
committee shall have jurisdiction to review and decide violations subject to fines. 
 
2. The committee shall issue its decisions a ccording to the rules and procedures 
specified by the Implementing Regulations. 
 
3. Decisions of the committee may be appealed before the Board of Grievances within 
sixty days from the date of notification of the decision.  
 
4. If the committee, upon reviewing the violatio n, decides that the violation calls for the 
punishment of imprisonment, it shall refer the case to the Board of Grievances for ab 
initio  adjudication. 
 
Article Sixteen: 
Without prejudice to provisions of Article Tw elve of this Law, the Council may issue a 
decision to take one or more of the following me asures, if a violation of one of the provisions 
of this Law has been established: 
 
1. Requiring the violator to change his arrang ements and remove the violation within a 
period of time specified by the Regulations. 
 2. Requiring the violator to dispose of some of  the assets, shares or proprietary rights, 
or to undertake any other action which removes the effects of the violation.  
 
3. Compelling the violator to pay a daily fine  not less than one thousand riyals and not 
exceeding ten thousand riyals, until the violation is removed. 
  IP/N/1/SAU/O/1 
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  Article Seventeen: 
Anyone against whom the Council has issued a decision may appeal that decision in 
accordance with the Law of the Board of Grievances and its regulations. 
 
Article Eighteen: 
Any natural or corporate person subjected to  harm resulting from practices prohibited 
under provisions of this Law may apply for co mpensation before the competent judiciary.  
 
Article Nineteen: 
Within one year from the date of publication of this Law, all firms covered hereby shall 
rectify their status to make them conform to the provisions hereof.  
 
Article Twenty: 
The Council shall issue the Implementing Regula tions of this Law within ninety days from 
its publication, and they shall come into effe ct at the time this Law goes into effect. 
 
Article Twenty One: 
This Law shall be published in the Official G azette, and shall take effect after one hundred 
and eighty days from the date of its publicatio n, with the exception of the provisions related 
to the formation of the Council and its jurisdicti on, which shall be effective from the date of 
publication of this Law.   
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