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Article After Amendment
Article Prior to Amendment
The addition of paragraph (14) to Article Two:
The Act aims at achieving the following: …
14. Promoting the governance of companies operating in the Telecommunications and Information Technology Sector, ensuring safety and protecting the Kingdom's national interests
The Act aims at achieving the following:
1. Developing the Telecommunications and Information Technology Sector to improve the efficiency of its services and infrastructure.
2. Encouraging digital transformation, stimulating the use and utilization of telecommunications and information technology in all areas.
3. Encouraging technical innovation, entrepreneurship, research and development in Telecommunications and Information Technology Sector, and developing subsectors and emerging technologies, as well as developing new telecommunications and information technology services.
4. Transferring and localizing technology in the Telecommunications and Information Technology Sector and keeping up with its updates.
5. Protecting the public interest, the user and its interests, as well as raising its level of trust; by providing appropriate quality telecommunications and information technology services, in addition to providing protection against harmful content, and maintaining the confidentiality of communications.
6. Promoting access to high-end, affordable telecommunications and information technology services in all regions of the Kingdom. 7. Developing the share of local content in the Telecommunications and Information Technology sector and stimulating demand on relevant national enterprise products and services.
8. Enhancing the competitiveness of the Telecommunications and Information Technology Sector and its companies, ensuring the continuity and effectiveness of its level of competition, and raising the competitiveness of telecommunications companies, regionally and globally.
9. Providing an attractive environment for investment in the Telecommunications and Information Technology Sector, attracting leading international companies in the sector's priority areas, and raising the level of work of national companies.
10. Regulating the use of the frequency spectrum to ensure its optimal use.
11. Using the National Numbering Plan effectively.
12. Achieving clarilty and transparency in procedures.
13. Achieving the principles of equality and non-discrimination.
Article After Amendment
Article Prior to Amendment
Amendment to Paragraph (2) of Article Twenty:
2- The approval of the Board must be obtained before making any sale or purchase, direct or indirect assignment of stocks, shares, tools, securities that are convertible into capital issued by a Service Provider licensed to operate in the Kingdom which results in the ownership or control by any natural or legal person of 5% or more of shares or stocks of the Service Provider, or which results in reaching the level of a controlling Service Provider in a related telecom market or part thereof.
1- Without prejudice to the provisions of other laws, the Service Provider shall obtain the Board's approval before making any merger with other service provider inside or outside the Kingdom and inform Commission within (five) business days of any initial agreement made in this regard.
2- The Service Provider or any natural or legal person shall obtain the Board's approval before purchasing 5% or more of shares or stocks of a service provider licensed to operate in the Kingdom, which may result in reaching the level of the Service Provider that controls a related telecom market or part thereof.
3- The Commission shall, within the period stipulated by the Bylaws, decide on any received requests in accordance with Paragraphs (1) and (2) of this Article.
Article Prior to Amendment
1- The Commission shall, after making coordination with the competent authorities, make internet filtering and limit access to a specific content on the internet, prevent or restrict access to internet services on the gateways.
2- It is prohibited to bypass or swindle internet filtering or to provide the means to do so. In addition, the Commission shall set the regulating controls and requirements.
Amendment to Paragraph (2) of Article Twenty-Four:
2. It is prohibited to bypass or swindle internet filtering or to provide the means to do so. In addition, the Commission shall set the regulating controls and requirements in coordination with the competent authorities.
Article Prior to Amendment
1. Commission's inspectors for whom the Board issues a resolution on naming them shall jointly or severally perform investigation, examination and collection of inferences, control violations of the provisions of the Act, Bylaws and regulatory decisions. In addition, the inspectors shall, during the working hours, inspect the sites of the licensed or persons suspected to violate the provisions of the Act or Bylaws, without prejudice to the relevant legal provisions, review and take a copy of the documents, systems and databases and ask, when needed, for the help of competent security agencies to enable them to implement their tasks.
2. The Commission shall investigate and take legal actions against the offenders and may cease the service subject of the violation precautionarily. The Bylaws shall determine the necessary provisions for the same.
3. The Commission shall keep the seized items until the Committee makes a decision on the violation. If a final decision-proving occurrence of the violation is rendered, the Commission shall be entitled to release the seized items as defined in the Bylaws without prejudice to the offender's right to claim with compensation for damage.
4. The officers and employees in the places desired to be inspected shall enable the inspectors to perform their work and shall not impede them and provide all facilities, information and documents that they require.
5. The inspectors shall present their job cards when undertaking their duties.
Amendment to Paragraph (1) and the addition of Paragraphs (6) and (7) to Article Twenty-Five:
1. Inspectors of the Commission, named by a resolution issued by the Governor shall jointly or severally, conduct investigation, examination and collection of inferences. In addition, the inspectors shall inspect the sites of licensed persons or others suspected of violating or engaging in communication and information technology activities, and control violations of the provisions of the law, regulation and Bylaws, without prejudice to the relevant legal provisions, access and review the documents, systems and databases; obtain copies of them, and seek assistance - as required - from the competent security authorities to enable them to perform their tasks.
6. The Commission shall establish controls and rules to regulate the reporting of violations of Act's provisions and its Implementing Regulations, including determining the financial rewards for reporters, controls for their disbursement and entitlement, and implementing measures that contribute to the protection of reporters.
7. The Commission may request the Service Provider or any other person - at their own expense - to appoint specialized companies or technical entities to verify compliance of the Service Provider with the provisions of the Act and its Implementing Regulations and Bylaws. In addition, the Commission may request any data, information, or documents it deems necessary for the application of the provisions of the Act, Regulations, and Bylaws, in accordance to the following:
a. Such information must be submitted within the timeframe specified by the Commission; unless such timeframe is restricted by a specific provision in the Act or Implementing Regulations.
b. Such information must be submitted in the form and by the means that the Commission deems appropriate. The party upon whom such a request is made shall comply with the Commission's request, and verify the accuracy, correctness, and quality of the information, data or documents prior to submission.
Article After Amendment
1. Without prejudice to what is stated in the Act or any severe penalty provided for in any other law, the person who commits any of the violations provided for in Article (Twenty - Six) hereof or proceeds with or helped in committing such violations shall be punished with one or more of the following penalties:
a. A fine not exceeding (twenty-five) million Riyals.
b. Ceasing service subject of the violation in full or in part.
c. Prohibiting the offender for a specific period from obtaining or renewing a license for providing telecommunications or information technology services.
d. Blocking digital content platform in full or in part.
Deletion of subsection (d) of Article Twenty-Seven (1)
Article Prior to Amendment
Addition of a new Article
Article Thirty-Eight bis:
The Commission shall, in coordination with the relevant authorities, establish the necessary controls, rules, and regulations for the governance of companies operating in the Telecommunications and Information Technology Sector, with the aim of enhancing their governance, ensuring the integrity of the sector, and protecting the national interests of the Kingdom, which shall include the following:
a. Regulating ownership percentage and associated voting rights in companies operating in the Telecommunications and Information Technology Sector.
b. Regulating agreements concluded by licensees with other entities, including management agreements.
c. Regulating licensing requirements for companies that have obtained scarce resources, including (frequency spectrum, right of way, digital resources, and others), to include the mandatory listing and public offering on the Saudi Arabian stock market.
d. Regulating the responsibilities of the Board of Directors and senior executives of the company.
e. Regulating the provisions related to the governance of the affairs of related companies in incorporation agreements.
f. Regulate and govern the procedures for adopting and amending the articles of association of those companies.
g. Regulate risk management and business continuity for those companies.
Last update: 04 July 2024
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