$8m fine for Saudi soft drink firms over prices

A Riyadh appeal court has upheld the decision of an administrative court to fine six soft drink companies over their joint decision to increase prices by 50% back in 2009.

Sister publication Arabian Business reported that the court upheld the decision to fine each company US $1.3 million (SR5 million) over the breach of Saudi Arabia's rules and regulations.

The unnamed companies violated Article 4/1 of the rules for competition, which prohibit such agreements, contracts and practices of fixing prices among companies which are competitors.

Competitiveness Council secretary Ibrahim Al-Salim told Arab News that the companies did not respond to requests to reverse their decision to increase the prices in 2009.

The subsequent investigation found that the companies were acting only to increase profits. The lawyer representing the firms said they would appeal the decision to the Supreme Administrative Court.