Breaking Monopolies in the Market: Shura Member Fadl Al-Buainain Calls for Action

Member of the Shura Council, Fadl Al-Buainain, broke his silence and asked about the role of the General Authority for Competition in addressing monopolistic practices, which are witnessed by some important sectors for consumers, and affect markets, their efficiency and competitiveness, including the food and automobile sectors.

He stressed that what he described as “dismantling” the inflated companies is part of the anti-monopoly tools, especially the agencies that control the auto sector and influence its availability, prices, and quality of services provided to consumers.

Through a quick look at the economy, and the market in general, he finds Al-Buainain, who spoke in exclusive statements to “News24The Commission’s functions are mostly unfulfilled, and if a part of it is achieved, it is in isolated files, such as the cement market, in which the Commission imposed fines on violators, as a result of their monopolistic practices.

The member of the Shura Council attributes the failure to achieve the well-being of consumers, and their suffering from high prices and poor services, to the control of commodity agents in the markets, which increases their daily suffering and negatively affects their budgets.

Al-Buainain added: “The efficiency of the market is not achieved, as the local markets move according to the internal pricing policy that is affected by monopoly or oligopoly. This is evidenced by the food price index’s violation of global indices, as commodities continue to rise locally, while they decline globally. This is not It is related to the stock that may be purchased during the period of rising commodities globally, and even to newly imported commodities and low prices. Rather, it is linked to the control of the few on the market and their control over distribution prices.

And he believes that despite the multiplicity of options for one item, the importer of it – and perhaps one party – controls the pricing, which justifies the convergence of prices of product alternatives in the market.

In the car market, the shura member explains that the monopoly of agents has led to a scarcity of supply, inflation of prices, a long waiting period for buyers to receive their cars, and control of the market according to practices that affect consumers. Resell at inflated prices.

He wondered, how did these new cars reach showrooms at a time when they are withheld from individual consumers, and is there a contractual relationship between showrooms and car dealerships, which resulted in a crisis of scarce supply and price inflation?

He called for addressing some monopolistic practices in the food and car markets, which contributes to addressing price inflation and the scarcity of supply of some durable goods such as cars, and addressing the agency file, which may have been one of the causes of market inefficiency, opening the market to competitors and limiting the influence of agents on the market, and on the decision of exporting companies. them abroad, wishing to give more agencies to the business sector inside the Kingdom.

He stressed the need for the authority to deal with monopolistic practices in the food and car markets, and to stimulate the business sector to obtain agencies parallel to the agencies currently available, and justified this by the fact that the local market is a huge market, which can accommodate more agents, instead of a single agent, or the lack of influence in prices and the availability and diversity of products. .

Al-Buainain’s claims include, according to his opinion, a strategic dimension that ensures the diversity of importers and restores the sustainability of supplies, price stability, quality of services, and market efficiency.