# How are Fines and Penalties Estimated in Competition Law?

The Competition Law imposes strict penalties to deter monopolistic practices. The Implementing Regulations (Articles 45-53) clarify how these penalties are estimated.

## Value of Financial Fines

According to **Article Nineteen** of the Law, penalties are estimated as follows:

- **Severe Violations (Monopoly and Dominance):**- Fine not exceeding **10%** of total annual sales.
- Or fine not exceeding **10 Million Riyals** (when estimating sales is impossible).
- Or **3 times the gains** achieved (if greater than the specified cap).


- **Investigation Obstruction Violations (Withholding Information):**- Fine not exceeding **5%** of total annual sales.
- Or fine not exceeding **5 Million Riyals** (when estimating sales is impossible).


- **Other Violations:**- Fine not exceeding **2 Million Riyals** for any other violation of the Law or Regulation.



## Doubling Penalty (Recidivism)

If the violator returns to commit the same violation within **3 years**, the Committee may **double the fine**.

## Administrative Measures

In addition to fines, the Board may take measures (Article 21) including:

- Obligation to correct situations within a specific period.
- **Daily fine** not exceeding 10,000 Riyals until violation is removed.
- **Temporary closure of establishment** for a period not exceeding 30 days.
- Order to sell some assets or shares to break the monopoly.

## Naming and Shaming (Publication)

The penalty decision is published at the violator's expense in a local newspaper or media outlet after the judgment becomes final.

**Reference:** Competition Law (Articles 19-22) - **General Authority for Competition**