South Africa: Proposed Guidelines on Penalties for Failure to Notify a Merger—Some Predictability, Some Uncertainty

On February 17, 2017, the South African Competition Commission (“Commission”) published “Draft Guidelines for the Determination of Administrative Penalties for Failure to Notify a Merger and Implementation of Mergers Contrary to the Competition Act” (the “Guidelines”). The Commission published the Guidelines in response to the identification of a number of cases of failure to notify mergers and implementation of mergers contrary to Chapter 3 of the Competition No. 89 of 1998 (as amended) (the “Act”) and to the Competition Tribunal (“Tribunal”) calling upon the Commission to formulate guidelines in this regard. The proposed Guidelines attempt to provide an approach for determining penalties in instances where parties have failed to notify a merger or have implemented a merger prior to receiving approval from the competition authorities. The Act requires that intermediate and large mergers be notified to the Commission and such mergers may not be implemented until they are approved, with or without conditions, by the competition authorities.

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