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Saudi authorities decided to impose penalties of more than $37 million again 14 local cement companies after they were accused of trying to manipulate the domestic cement market, a newspaper reported on Tuesday.
The 14 manufacturers, who control most of the Saudi cement market, were accused of reaching an illegal agreement among themselves to “raise cement prices and share the local markets”, the Arabic language daily Aliqtisadia said.
After conducting a “thorough” investigation into complaints by consumers, the General Authority for Competition concluded that 14 cement firms were involved in illegal practices to “manipulate the market and increase cement prices,” the report said.
“The Authority decided to penalise each firm 10 million Saudi riyals ($2.66 million)…the decision became final after an administrative appeal court in Riyadh turned down an appeal by the 14 companies against the decision,” it added.
The companies are Al-Safwa, Al-Madina, Umm Al-Qura, Al-Jouf, Al-Qassim, the Southern Province, Najran, United Cement, Al-Yamama, Al-Riyadh, Arabian Cement, Saudi Cement, Yanbu, and Hail, according to the paper.
(Writing by Nadim Kawach; Editing by Anoop Menon)