The General Authority for Competition (GAC) plays a key role in the macroeconomy of Saudi Arabia, focusing on increasing the welfare of consumers, encouraging market competition and clamping down on large companies that seek to control small players, Abdulaziz Alzoom, Governor of GAC, told Argaam in an exclusive.
The authority is closely monitoring the markets to ensure that prices are subject to supply and demand, rather than cartels among various players, Alzoom said.
GAC aims to cut prices through the application of the competition law and removing obstacles for new market entrants to enhance competition and boost investments.
Increased market competition push companies to raise spending on development and innovation, while monopolists lack the incentive to innovate, Alzoom pointed out.
Monopolies are large in some markets, he said, adding that GAC is seeking to reduce economic concentration and strengthen competition in the markets.
Some companies might exhibit misconduct with small and medium-sized businesses, driven by their extended market power. This misconduct may include the formation of price cartels, abuse of dominance, and formation of cartels in public tenders. GAC ensures to prevent and clamp down on these practices, Alzoom explained.
Meanwhile, the more competition is found the more options are available for customers. Monopolies do not provide alternative options for consumers.
“When a single company was operating in the telecommunications sector, we had a few, expensive options. More options have become available, as the number of sector players increased,” Alzoom noted.
Highlighting GAC’s role during the COVID-19 crisis, the top official affirmed that the authority, in coordination with the Ministry of Commerce, the Consumer Protection Association (CPA) and Saudi Food and Drug Authority (SFDA), is working to control violations, price hikes or monopoly of commodities.
“GAC has succeeded in alleviating the crisis impact on Saudi nationals through controlling prices and supply chains,” he added.
Elsewhere, Alzoom added that GAC also finalized its strategy for the next five years.
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