DAMMAM – A number of rice importers have been fined a total of SR40 million for violation of the provisions in the Kingdom's Competition Law. Minister of Commerce and Industry Tawfiq Al-Rabiah, who is also chairman of the Council of Competition Protection (CCP), endorsed a decision taken in this regard by the committee to deal with violation of the law. The committee found that the rice merchants violated the law by mutually agreeing to reduce the weight of rice packets and hike prices. The rice importers have the right to approach the Court of Grievances with an appeal against the committee's decision, the Ministry of Commerce said in a statement. The Council will publicize their names after the issuance of a final verdict in their case by the court. According to Article 12 of the Competition Law, a fine amounting to not more than SR5 million will be imposed for each violation of the law. The amount of fine will be doubled with the repetition of the violation and details of the verdict will be publicized at the expense of the violator.
Al-Rabiah said the Council is striving to realize the goals of the law by enhancing fair competition and punishing violators of the law. The law aims at ensuring fair competition by compelling the traders and importers to abide by its provisions by curbing practices which monopolize the market, he added. Muhammad Al-Qassem, Secretary General of the Council, noted that some rice importers engaged in draining the market of rice stocks and eventually hiked prices. “These companies informed their customers about the new hike without notifying them or explaining the reasons for increasing prices. Article 4 of the law prevents some practices, including curbing the free flow of products and services to the market partly or wholly, with an objective of hiding or stocking them in an unfair way and conniving to increase prices,” he said, adding that draining the market is a clear violation of the law.
