Competition Regulations for Digital Content Platforms

In a clear reflection of the Kingdom’s strong will to support the development of the Digital Content sector and provide an enabling environment to achieve a globally leading role by 2030, the Saudi Cabinet issued decree (125) dated 21/02/1443 AH, approving the creation of the Digital Content Council, with mandates to develop Digital Content in the Kingdom, and coordinate efforts between government agencies to improve the legislative and regulatory environment for Digital Content.  The council has approved the IGNITE executive program for Digital Content.

The following words and expressions shall have the meanings associated with them unless the context requires otherwise:
2-1    The Kingdom: The Kingdom of Saudi Arabia.
2-2    CITC or “Commission”: Communications and Information Technology Commission
2-3    Digital Content: Any content that exists, is stored, and distributed digitally, in form of specific digital audio and visual formats
2-4    Digital Content Platforms or Platforms: Platforms specified in Article (4), principally with the following features:
2-4-1          Platforms providing Digital Content to Users in the Kingdom, free of charge or for a fee
2-4-2         Platforms providing Digital Content through one or more digital devices (e.g., smart phone, laptop, computers, consoles/arcades, or TV)
2-5    Service Provider: The entity that owns and operates the Digital Content Platform from which Digital Content is distributed/ provided to Users in the Kingdom.
2-6    Covered Platform: A Platform designated by CITC pursuant to Article 5, to which the prohibitions of article 6 apply.
2-7    User: Any person dealing with Digital Content Platforms to obtain the services provided in their various forms, including subscribers, customers, consumers, viewers, listeners, and the like.
2-8    Business User: Any person or an entity using the Digital Content Platform in a commercial or professional capacity for the purpose of providing goods or services to the User or to advertise to the User.
2-9   Monthly Active Users: Number of unique Users who used the Platform within a given month
2-10 Network Effects: Phenomenon whereby the value of a product or a service offered by a Digital Content Platform depends on the number of Users and Business Users (if applicable) who leverage it
2-11  Linear Content: Visual or audio content, or both, that is provided to Users according to a specific program schedule.
2-12  On-Demand Content: Audio or visual content, or both, provided to Users upon request without being bound by a predetermined program schedule.
2-13  Satellite Pay TV Platforms: Platforms that provide audio and visual content in encrypted form (using a conditional access systems) via satellite allowing Users to access content via a set-top box or similar devices.
2-14  Internet Protocol TV (IPTV) Platforms: Platforms that deliver audio and video content through closed networks based on Internet Protocols (IP), via a set-top box or similar digital devices.
2-15  Video OTT Platforms: Platforms that provide linear or on-demand video content to Users, with active editorial control on the content available on the Platform, content on such Platforms is pre-dominantly not User generated.
2-16  Video Sharing Platforms: Platforms that provide linear or on-demand online content to Users with limited editorial control over the content available on the Platform, content on such Platforms is pre-dominantly User generated.
2-17  Audio-on-Demand Platforms: Platforms that provide on-demand audio content (music, podcasts, audiobooks, or other audio) over the internet to Users.
2-18  Internet Radio Platforms: Platforms that provide linear audio content (e.g., music, podcasts, audiobooks, or other audio content) over the internet to Users.
2-19   Online Gaming Platforms: Platforms that allow Users to play games (downloadable or on cloud) using the internet with the purpose to monetize from the gaming service, either through user fees or other revenue generating features (e.g., advertisements, partnerships).
2-20  E-Sports Participation Platforms: Platforms that allow Users to participate in organized online esports tournaments, such Platforms usually offer dedicated matchmaking, server hosting, and player ranking features to Users.
2-21   Social Media Platforms: Platforms whose primary purpose is to facilitate social interaction and content sharing between Users, content on such Platforms is pre-dominantly User generated.
2-22  Online Advertising Platforms: Platforms that provide means to publish Digital Content as advertisements through various digital channels (e.g., smartphones, websites, applications)​.​

This regulation aims to introduce competition rules for Digital Content Platforms to:
3-1           Promote growth and investment while promoting fair and vibrant competition among Digital Content Platforms providing Digital Content to Users and Business Users in the Kingdom.
3-2          Protect Users and Business Users from unfair and anti-competitive practices.  
3-3          Promote certainty and consistency for all actors engaged in the Digital Content sector in the Kingdom, in line with global best practices. ​

4-1  Without prejudice to the Competition Law issued by Royal Decree No. (M / 75) dated 06/29/1440 AH and the legislative processes in place regarding the regulation of digital content platforms competition, the provisions of these regulations shall apply to Service Providers providing below listed Digital Content Platform services to Users and Business Users in the Kingdom, whenever the criteria set forth in Article 5 are applicable.

​5-1    A Platform shall be designated as a Covered Platform based on detailed qualitative and quantitative assessment by CITC

6-1   In respect of the services it operates, a Platform designated as a Covered Platform shall refrain from the following:
6-1-1         Inappropriately and anti-competitively favoring the products or services provided by the Platform’s Service Provider over the products or services offered by other competing Service Providers
6-1-2        Making the sale of one product or service conditional upon the purchase of an unrelated product or service or a product or service
6-1-3        Imposing unfavorable contract terms on Business Users, that constitute onerous demands or that cause a significant imbalance in rights and obligations of Business Users.
6-1-4        Discriminating unreasonably or without justification between Business Users under similar contracts in relation to prices of goods and fees of services or their terms of sale and purchase​​

7-1       CITC may, at its own initiative or at the request of any person or entity, launch an investigation to assess compliance of a Covered Platform with the prohibition of activities pursuant to Article 6 of these regulations. At the conclusion of its investigation, CITC will issue a decision setting out its findings, including any remedial and compensatory action that may be required of the Covered Platform to adhere to the prohibitions set out in Article 6.
7-2      CITC may also carry out investigations under applicable laws in view of possible infringements that pertain to practice of one or more Prohibited activities by a Covered Platform
7-3      Without prejudice to the provisions of Article 29 of the Telecommunications and Information Technology Law, the decisions made by CITC pursuant to paragraph 7-1 of this Article shall be final and binding to all parties, provided that a prior notice shall be sent to such parties informing them that a decision is under consideration and giving them the chance to provide feedback regarding the same.
7-4      CITC may decide, on a case-by-case basis, that a particular act or activity in Article 6 of these regulations shall not be viewed as a prohibited activity in case the benefits of said act or activity, such as improving the performance of the market, adding value or advantages to the consumer, enhancing the performance of the business, are deemed to be in the greater public interest.​

Any violation of the provisions of these regulations shall be subject to the penalties that CITC may impose under Chapter 9 (Articles 26, 27, 28, 29) of the Telecommunications and Information Technology Law, without prejudice to any penalties that may be imposed under any other applicable law in the Kingdom​

9-1     This regulation shall enter into force within nine months from the date of publication of its legislative approval.
9-2    CITC shall, from time to time, review these regulations and amend them whenever it deems necessary. Updates to it are approved by CITC’s Governor​