CPA fines reinforced steel distributing company 1.75 million dinars

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KUWAIT CITY, Jan 16: The Disciplinary Board of the Competition Protection Authority issued a decision to impose a fine on a company specialized in distributing reinforced steel, almost 2 million dinars for carrying out practices harmful to competition in the local market, reports Al-Rai daily. The daily has learned from relevant sources that the Disciplinary Board of the CPA monitored the company’s violation of the rules and discovered the company had withheld reinforcing steel products which led to a scarcity of supply, and then this was offset by an increase in the price in high demand.

The sources indicated that the executive body of the agency submitted the company’s file to the Disciplinary Council, which concluded that the company had already violated the rules of competition to the extent that it necessitates the application of the law, which approves a fine of 7 percent of its total revenues for the previous fiscal year (1.75 million dinars), after the investigation proved the company was guilty.

The sources stated that the companies working in the field of iron were examined and tracked the pattern of prices, inventory and quantities that can be manufactured and distributed in sales outlets to verify whether or not there are practices harmful to competition or not at any stage of production and distribution. It is noteworthy that the previous punitive decision of the CPA had fined the company 250,000 dinars for violating Article 34 regarding the protection of competition, which stipulates the need to submit the data requested from it in a timely manner, as the officials of the CPA stated at the time that the Disciplinary Board affiliated with it decided to fine the company about one percent of the total revenues achieved during the fiscal year (2020-2021). The sources pointed out that in both cases, the iron company was referred to the disciplinary council after researching and studying what was raised about the prices of Kuwaiti reinforcing steel and the distributing companies stopping selling iron in the Kuwaiti market during the periods covered by the study.

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