Electrical Industries: 2 units fined SAR 26.1M for potential Competition Law violations

21/07/2024 Argaam
Logo ofElectrical Industries Co. (EIC)

Logo of Electrical Industries Co. (EIC)


Electrical Industries Co. (EIC) received, on July 17, a resolution from the Committee for Resolution of Competition Law Violations, which includes imposing a penalty of SAR 26.1 million on two of its subsidiaries for potential violations of the Competition Law.

 

In a statement to Tadawul, the company said the General Authority for Competition (GAC) filed a lawsuit on Nov. 7, 2023, against the two subsidiaries with the General Secretariat of the Committee for Resolution of Competition Law Violations, Riyadh.

 

Six Saudi companies, including two EIC subsidiaries, were accused by GAC's public prosecution for violating Competition Law. Thus, GAC's board initiated a criminal case against the companies.

 

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The penalty is immaterial compared to the volume of the company’s business and assets, the company said.

 

It expects that there will be no risk to its financial or operational position.

 

EIC assures the strength of its legal position according to independent legal opinion. Accordingly, it will file an objection with the Riyadh Administrative Court.

 

The company will announce any major related developments in due course, the statement noted.

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