- How are Anti-Competitive Practices Evaluated?

When the General Authority for Competition (GAC) investigates any commercial practice (whether its goal is explicit or implicit, and whether its effect has actually occurred or was potential), it relies on a set of discretionary criteria to determine whether this practice violates competition or not.

According to Article Eleven of the Implementing Regulations, these criteria include the following:

1. Market Impact Size

The Authority looks at:

• The percentage of suppliers and purchases affected by the practice and their market shares.
• The duration during which the violation continued.

2. Impact on Prices and Products

The difference between the current situation and the hypothetical situation (if the practice had not occurred) is analyzed through:

• Change in prices or quantities from expected normal levels.
• Impact on quality, variety, or innovation in goods and services.

3. Consumer Interest

The impact on consumer benefits is a core criterion; any practice that harms the consumer (raising prices, reducing options, lowering quality) is considered a strong indicator of competition violation.

4. Freedom of Trade and Market Entry

The Authority studies the impact on:

• Freedom of import and export.
• The extent to which the practice aligns with usual competitive behavior in normal competitive conditions (is this a logical commercial behavior or artificial?).

These criteria ensure that decisions are not made arbitrarily, but based on careful economic analysis of the actual or potential impact on the market.

Reference: Implementing Regulations of the Competition Law (Article 11) - General Authority for Competition