Administrative Court annuls Article 15 of "Commerce" decision imposing fees on delivery companies

The Administrative Court, presided over by Advisor Nawaf Al-Zubaidi, ruled to annul Article 15 of Commercial and Industrial Ministry Decision No. 109 concerning the regulations governing the intermediary electronic platforms and applications sector for displaying, ordering, and delivering products to consumers, in the case filed by Blames Company.

Article 15 stipulates that “without prejudice to any harsher penalty prescribed by another law, any act or omission that results in a breach of the obligations or provisions set forth in these regulations constitutes a violation of these regulations. Depending on the severity and recurrence of the violation, one or more of the following administrative penalties shall be imposed:

- First, if the violation is committed by the service provider: (1) A formal warning. (2) Administrative closure until the violation is rectified and the situation is corrected; such closure necessarily entails blocking the platform for the entire duration of the closure. (3) Revocation of the license, which necessarily entails permanent blocking of the platform.

- Second, if the violation is committed by the client: (1) A formal warning. (2) Closure of the client’s premises or suspension of their activity if the Ministry is the competent authority for licensing; or referral to the competent licensing authority to decide on closure or suspension if the license was issued by that authority; such measures necessarily entail suspending the display of the client’s products or services on the platform for the entire duration of the closure or suspension. (3) Revocation of the license by the relevant authority, which necessarily entails permanently suspending the display of the client’s products or services on the platform.”