Friday, September 13, 2013
Posted by D. Daniel Sokol
Hussein Ahmed Tura, Wolaita Sodo University has posted Merger Regulation Under Ethiopian Competition Law: A Comparative Overview.ABSTRACT: Most countries in the world have enacted competition laws to protect their free market economies and have thereby developed an economic system in which the allocation of resources is determined mainly by demand and supply. In the case of Ethiopia, competition law was introduced in 2003. However, the earlier completion law, Proc No. 329/2003, was not only inadequate but also obsolete in certain respects; particularly, in light of merger regulation as it neglected the issue altogether. To overcome such shortcoming, the Ethiopian government has enacted the Competition and Consumers’ Protection law in 2010. This enactment is seen as the country’s response to the opening up of its economy, removing controls and resorting to liberalization. The law sought to ensure fair competition by prohibiting trade practices which cause appreciable adverse effects on the competition in market within the country.
This Article provides a comparative picture of the Ethiopian Competition Law with respect to merger regulation with those of the United States of America (US), European Union (EU), United Kingdom (UK) and South Africa. It will at the beginning tries to explain the meaning and different types of mergers; and will elaborate on effects and consequences of these merger transactions. Then it will highlight the major merger laws and addresses the conceptual underpinning of merger in these jurisdictions. It will then attempt to elucidate on significant aspect of threshold limits in different jurisdictions and point out ways in which Ethiopia deals with mergers above and below the threshold limits. Moreover, the Article will importantly explain substantive tests used for assessment of mergers in these jurisdictions and the factors considered by competition authorities before deciding the fate of mergers. It will also look into the much debated aspect of control of joint ventures under merger laws and will examine how different jurisdictions have dealt with the same. Finally, the Article concludes on certain issues which could be considered in improving the Ethiopian competition merger regime.