Saudi authorities take steps to enforce new regulations on car dealership contracts

In order to address the increasing concentration in the automobile industry, specifically with regard to the registration of further dealership agreements for car distribution, the General Authority for Competition and Saudi Arabia's Ministry of Commerce have recently convened many meetings.

Companies wishing to register these vertical agreements have begun to submit applications to the authority, which intends to publish a thorough guide to assist businesses in adhering to anti-competitive behavior and competition laws.

The action comes after a recent inquiry by the authority into companies involved in auto sales, after-sales services, and spare parts, the results of which were forwarded to higher authorities. Presently, it is investigating possible incidents of economic concentration within the industry.