As free markets expand in Saudi Arabia, the General Authority for Competition (GAC) enforces stricter regulations to prevent monopolies and ensure fair competition. For any significant merger, acquisition, or joint venture, GAC clearance is not just a formality—it is a mandatory legal prerequisite with high financial stakes.
Role of GAC
GAC is an independent authority charged with supervising the implementation of the Competition Law. mandates. Its primary goal is to promote and encourage fair competition and combat monopolistic practices that affect lawful competition.
Economic Concentration: This is the key trigger for GAC involvement. It refers to any transaction (merger, acquisition, JV) that results in a change of control and exceeds the financial notification threshold.
Our Filing Services
We handle the complex economic and legal documentation required for clearance.
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📑Merger Filings Preparing and submitting the 'Notification of Economic Concentration' to GAC.
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⚖️Jurisdictional Assessment Analyzing turnover to determine if a mandatory filing is triggered.
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🚫Exemption Requests Applying for exemptions for practices that improve production or distribution.
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🎓Compliance Training Educating corporate teams on avoiding anti-competitive behaviors (e.g., price fixing).
Clearance Procedure
A typical GAC notification follows these statutory steps:
Anti-Competitive Practices
Beyond mergers, GAC strictly prohibits:
- Price Fixing or Collusion
- Market Splitting / Allocation
- Bid Rigging in Tenders
- Abuse of Dominant Market Position
- Predatory Pricing
- Resale Price Maintenance
Mandatory Filing Thresholds
You MUST file for GAC clearance if your transaction involves:
Combined massive annual worldwide turnover of all parties exceeds 200 Million SAR.
The transaction results in a permanent change of control (e.g., acquiring voting rights).
There is a local nexus to Saudi Arabia (e.g., sales or assets within the Kingdom).
Why Comply?
- Avoid Penalties Fines for non-filing can reach up to 10% of total annual sales.
- Deal Security GAC approval provides legal certainty that the transaction will not be challenged.
- Global Alignment Coordination with other competition authorities if filing in multiple jurisdictions.
Frequently Asked Questions
Secure Your Merger Clearance
Ensure compliance with Saudi Competition Law. Contact us for a filing assessment.
Start GAC Filing