Act allows effective regulation of acquisitions

MERGERS and acquisitions in businesses will be regulated more effectively thanks to the Independent Consumer and Competition Commission (Amendment) Act 2018 which came into effect on Nov 24, 2018, s Independent Consumer and Competition Commission (ICCC) says.
ICCC commissioner Paulus Ain said all business mergers and acquisitions were subject to the new mandatory notification regime, as opposed to the former voluntary notification regime which had allowed some businesses to undermine the state.
ICCC received the notice of commencement of the act on June 6.
The amendment was passed by Parliament on July 25, 2018, and certified on Sept 7.
As per the Gazettal Notice No.G444, Nov 24, 2018 was the date on which the amendment took effect.
The ICCC Act prohibits business mergers or acquisitions that would have, or would be likely to have, the effect of substantially lessening competition in a market in the country.
The amendment requires mandatory notification prior to consummation of a business acquisition or merger.
Ain said ICCC had proposed the mandatory notification regime due to the commission’s experience with a number of business mergers and acquisitions which had been consummated without the business(s) notifying or consulting the ICCC prior to the consummation and which had led to legal action taken by the ICCC against those businesses.
“With this new mandatory notification regime, the Independent Consumer and Competition Commission now can protect the interests of consumers in preventing acquisitions that could be detrimental to them as well as to the economy as a whole,” Ain said.