Electrical Industries Company announcement on the Lawsuit filed by General Authority for Competition against two of its Subsidiaries and the resolution issued by the Committee for Adjudication for Competition Law violations
| Element List | Explanation |
|---|---|
| Introduction | Electrical Industries Company announces that it has received a resolution of the Committee for Adjudication for Competition Law violations through its lawyer on 17/7/2024, resolution number (242), which includes imposing a penalty against two of its Subsidiaries, which is a fine of SAR 26.1 million for potential violation of Competition Law. |
| Lawsuit Opponent | General Authority for Competition |
| Name of the Plaintiff | General Authority for Competition filed a lawsuit against two of EIC Subsidiaries |
| Type of the Lawsuit | Violating Competition Law and the Executive Regulation |
| Name and Location of the Competent Judicial Authority | General Secretariat of the Committee for Adjudication for Competition Law Violations, Riyadh |
| Date of Submitting the Lawsuit | 2023-11-07 Corresponding to 1445-04-23 |
| Summery of the Lawsuit and its Reasons | -Six Saudi Companies including two subsidiaries of EIC were accused by the public prosecution of the General Authority for Competition for violating Competition Law. The Board of Directors of the Authority issued resolution Number (683) dated 4/9/2023 to initiate a criminal case against the Companies referred to above.
-The Committee for Adjudication for Competition Law Violations issued a resolution number (242) dated 4/7/2023, which includes imposing a penalty against the two subsidiaries which is a fine of SAR 26.1 million for potential violation of paragraph (8) of Article five of Competition Law, and paragraph (D) of Article eight of the Executive Regulation. |
| Expected Financial Impact Including the Claimed Sums, Fees and any other Charges | SAR 26.1 million, noting that the amount of the fine is immaterial compared to the volume of the Company’s business and assets. |
| Any Substantial Legal, Regulatory, or Operational Risks that may Result from the Lawsuit, including the Results of such Impact on the Company's Financial, Legal or Operational Standing | It is expected that there will be no risk on the Financial or the operational position of the Company |
| Measures Taken by the Company, including the Estimation of the Potential Liability Resulting from the Lawsuit | The Company assures the strength of its legal position according to independent legal opinion. Accordingly, the Company will file an objection with Administrative Court, Riyadh. |
| Additional Information | .The Company will announce later on any major developments related to the case |
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