Dr. Khaled Ahmed Mohamed
Assistant Professor of Commercial Law
Faculty of Law, King Faisal University
Al Ahsa, KSA

Abstract:

This research paper deals with the study and analysis of the legal system that frames the role of the various state agencies in the face of monopolistic practices carried out by some major economic entities resulting from mergers that take place between commercial companies, with the aim of strengthening their commercial and economic status in light of the challenges of competition, openness of markets and freedom of global trade. These mergers and expansions often lead to the emergence of monopolistic tendencies and practices that negatively affect consumers, small businesses, and others. In light of this, the research aims to clarify the general provisions and legal controls regulating the merger between companies, the consequences thereof, and the state’s responsibility and duties in this regard.
This research paper gains its importance from the fact that mergers between companies have become an effective means in achieving commercial and economic growth, which has been reflected on the various segments of society, which necessitated the state to initiate procedures and controls for institutional integration to maintain the integrity of the commercial sector in a way that ensures its growth and prevents negative effects. Using an analytical, descriptive and comparative approach, the research paper presented two main axes in an expanded manner to the concept of merger and its types, and the monopolistic practices that can result from it, then it touched upon the legal means available to the state to confront monopolistic practices, reviewing this matter in four legal systems, namely the Saudi, Egyptian, Kuwaiti, and Emirati laws.
The research concluded that the merger between commercial entities is a global phenomenon that has a positive impact on all economic activities in general, and on commercial and financial activities in particular, and that commercial companies always seek to enhance their competitive position through the development of their business, alliance and merger, and that as countries take the initiative to ensure that all conditions are appropriate for this end, they also seek to achieve a balance with protecting the environment and with competition laws and protecting consumers, especially if mergers develop into monopoly and negative practices.
The research recommended to the Saudi organizer to issue executive emendations of the Saudi Companies Law to regulate mergers and organize state control over them. It also recommended that the Arab legislator issue legislation to regulate mergers, organize competition, and set up controls to prevent mergers that lead to market control. The research also recommended countries to activate the role of the regulatory bodies that work to follow up and monitor merger operations, and to achieve a balance between companies and the forces present in the markets through follow-up and auditing of mergers.

Key words: merger, monopoly, consumer protection, merger risks, legitimate competition.

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