Saudi Arabia Introduces New Guidelines to Boost Competition in School Supply and Sale Sector

The General Authority for Competition in Saudi Arabia has recently introduced new guidelines to enhance competition in the supply and sale of school uniforms and related items. These guidelines aim to promote consumer protection and ensure fair competition in the market, aligning with the country’s Competition Law.

In response to complaints from parents about exclusive agreements between schools and uniform suppliers, the Authority took action to prevent schools from mandating specific suppliers. Such exclusivity was found to limit market entry, increase costs for parents, and raise concerns about quality and pricing. By prohibiting exclusive agreements, the Authority seeks to foster market competition and provide parents with more choices when purchasing school uniforms.

The guidelines specify that school uniforms and related items are considered an ancillary market to educational institutions, as uniforms are mandatory during school hours. Each school is considered dominant in the market of supplying uniforms, leading to regulations against anti-competitive practices such as price-fixing and bundling unrelated products. These regulations apply to all entities involved in the supply and sale of school uniforms and related items, emphasizing the importance of compliance with the guidelines.

Prohibited practices in supplying and selling school uniforms include bundling unrelated products, price-fixing, exclusive sales at school premises, and exclusive agreements between schools and suppliers. These practices restrict competition, limit consumer choice, and may lead to monopolistic behaviors. By addressing these practices, the Authority aims to create a more open and competitive market environment for school uniforms.

When issuing school uniforms, entities in the market must adhere to obligations outlined in the guidelines. These include offering uniform designs from multiple sources, providing options for individual purchases, avoiding fixed prices, and refraining from exclusive agreements. By following these obligations, schools can contribute to a more competitive and consumer-friendly market for school uniforms and related items.

For further information on how the Saudi Competition Law impacts operations in Saudi Arabia, businesses are encouraged to seek guidance from legal experts specializing in Antitrust & Competition matters. The new guidelines represent a step towards promoting fair competition, protecting consumer rights, and fostering a more diverse market for school uniforms in Saudi Arabia.