The comesa competition regime provides that the commission must determine whether a transaction is likely to substantially prevent or lessen competition having regard to a range of competition factors set out in the rules. The role of competition law and policy in development. Jun 19, 20 the competition regulations of the common market for eastern and southern africa comesa, originally published in december 2004, were finally brought into effect in january 20. Study the information in the table below and answer the questions that follow. On april 8, 2015 following a meeting of the comesa council of ministers, the comesa competition ccc announced amendments to the commission the. Briefing may 2015 competition council of comesa introduces merger filing thresholds and reduces filing fees in 20, comesa 1 launched a merger control regime run by the competition council of comesa the ccc. It became operational on 14th january, 20 and is based in lilongwe, malawi, 2018. May 25, 2017 xiii competition from external players outside comesa due to their goods being cheaper than those from comesa. In light of the tripartite negotiations between sadceaccomesa as well as the negotiation of competition policy in terms of the african continental free trade agreement, it is imperative that the ccc develops an effective competition enforcement regime which assists and incentivizes free trade across the relevant markets. The commission promotes and encourages competition by preventing restrictive business practices and other restrictions that deter the efficient operation of. The new supranational comesa merger regime scope of the comesa merger control regime. Comesa competition commission welcome to comesa court of. In light of the tripartite negotiations between sadceac comesa as well as the negotiation of competition policy in terms of the african continental free trade agreement, it is imperative that the ccc develops an effective competition enforcement regime which assists and incentivizes free trade across the relevant markets. Members of the competition law department of cliffe dekker hofmeyr inc.
Comesa merger regime monetary thresholds established and filing fees lowered the comesa competition commission the commission informed the general public on 8th april, 2015 that the comesa council of ministers at its meeting held in. The comesa competition commission is an international organization established by comesa competition regulations which were issued in the comesa official gazette vol. National laws inadequate to deal with new issues brought about by international trade. Comesa new panafrican merger control regime on 14 january 20, the competition commission for the common market for eastern and southern africa comesa became operational. The comesa competition commission is intended to administer a supraregional competition and consumer protection regime, and its sudden appearance on the scene in january 20 is not without. In its early years of operation it has developed extensive experience in merger control, and is taking first steps in investigation and enforcement in. This development is of a significant importance as previously there. Sep 07, 20 the competition authority of kenya cak authority to act as the sole agency with the mandate to clear local mergers and acquisitions. Comesas 19 member states cut a swathe across the continent from libya and egypt in the north, through central and east africa as far south as zimbabwe and swaziland, and includes the islands of madagascar, mauritius, comoros and the seychelles. In 2004, the council adopted the comesa competition regulations the regulations establishing the ccc, which is based in lilongwe, malawi, setting up a merger control regime, and prohibiting restrictive business. In response to calls for greater clarity and legal certainty, comesa. To view this article you need a pdf viewer such as. Early experiences of the new comesa competition regime july.
New multinational comesa merger notification regime in. The cccs formal letter response to a contemporaneous. Changes to the comesa competition regime share page noting the various criticisms levelled against its competition regime, the common market of eastern and southern africa comesa competition commission commission recently adopted several amendments to its competition rules and regulations. It advises of help that can be provided by the cross border trader trade information desk. The rules of origin the steps a trader should take before setting out, and at the border. The commission promotes and encourages competition by preventing restrictive business practices and other restrictions that deter. The commissions core mandate is to enforce the provisions of the regulations with regard to trade and promote competition within the comesa common market through. Under that regime, mergers are notifiable where either or both the acquiring firm and the target firm operate in two or more comesa member states. The comesa competition commission ccc commenced operation on 14 january 20, enforcing a merger control and antitrust regime under the comesa competition rules rules and comesa competition. Comesa, eac and sadc encourage free trade between countries. Cliffe dekker hofmeyr changes to the comesa competition regime. The regulations represent the first attempt at crossborder competition regulation in africa.
In january 20, a supranational organization of 19 african states known as comesa implemented a new and potentially burdensome merger notification. This development is of a significant importance as previously there was no antitrust enforcement in the comesa. This comesa regime introduces new supranational merger control and business conduct rules which must now be complied with and which are enforced by the comesa. Comesa secretariat fair trading commission seychelles kenya competition authority competition. Jun 14, 2016 the comesa competition commission ccc commenced operation on 14 january 20, enforcing a merger control and antitrust regime under the comesa competition rules rules and comesa competition. A competition regime for the common market for eastern and southern africa 1 1. On 14 january 20, a new regional competition law regime came into operation across the 19 african countries that constitute comesa. In order to ensure fair competition and transparency among economic operators in the region, comesa enacted the regional competition law and policy to. On 14 january 20, a new regional competition law regime came into operation across the 19 eastern and southern african countries that are members of the common market for eastern and southern africa comesa. On 14 january 20, a new regional competition law regime came into operation across the 19 african. Previously, the comesa regimes thresholds were set at zero, 5. George lipimile, director and chief executive officer of the comesa competition commission, talks to clifford chance about the commissions approach to implementing the new supranational competition regime and intended future reforms.
The comesa competition commission the ccc commenced operations on 14 january 20 and implements a supranational merger control regime under the comesa competition rules and comesa competition regulations 2004 the regulations. The competition regulations of the common market for. Comesa competition law now in force a new merger control regime for firms operating in africa on 14 january 20, a new regional competition law regime came into operation across the 19 eastern and southern african countries that are members of the common market for eastern and southern africa comesa. The competition regulations of the common market for eastern. Cliffe dekker hofmeyr changes to the comesa competition. However, the legislation is expressed as applying to conduct that has an appreciable effect on trade between member states and which restricts competition in the common market. This creates a new supranational merger control regime in africa which companies will now have to navigate. In order to ensure fair competition and transparency among economic operators in the region, comesa enacted the regional competition. New dawn for business in africa as calculation comesa merger. Prospects and challenges for regional trade integration prepared by padamja khandelwal1 authorized for distribution by hans peter lankes december 2004 abstract this working paper should not be reported as representing the views of the imf. Comesa competition lawa new regional merger regime for. The competition regime for the common market for southern and eastern africa comesa was launched in january 20. Guidelines have subsequently been issued for the practical implementation of the regulations. The comesa competition commission ccc is a regional body established under article 6 of.
Comesa merger regime monetary thresholds established and filing fees lowered the comesa competition commission the commission informed the general public on 8th april, 2015 that the comesa council of ministers at its meeting held in addis ababa on 26th march, 2015 adopted the following. South african merger regulation regime and compare it with that of common market for eastern and southern africa comesa. Regulations and competition rules were adopted to prohibit anticompetitive practices within the region, to establish a. Comesa competition commission gives update on merger regime. In its early years of operation it has developed extensive experience in merger control, and is taking first steps in investigation and enforcement in its other areas of competence. Number of countries participating in the comesa fta set to. Commission means the comesa competition commission established by article 6 of. Part i preliminary rule 1 name of rules these rules are the comesa competition rules. Benefits of competition for businesses the common market.
Comesa competition regulations article 3 scope of application 1. This regime had filing thresholds set at zero and very high merger filing fees. Competition in comesa comesa is a supranational organisation of nineteen member states. Early experiences of the new comesa competition regime. Comesa competition law now in force a new merger control. This national legislation is underpinned by a european framework, with competition authorities across the eu having similar laws and. Comesa s 19 member states cut a swathe across the continent from libya and egypt in the north, through central and east africa as far south as zimbabwe and swaziland, and includes the islands of madagascar, mauritius, comoros and the seychelles. Comesa competition commission the comesa competition commission commenced its operations on the 14th of january 20 and is a regional body corporate established under article 6 of the comesa competition regulations. The comesa competition commission is intended to administer a supraregional competition and consumer protection regime and its sudden. Although the comesa competition regulations were adopted in 2004, the comesa competition commission only became operational on 14 january 20.
A competition regime for the common market for eastern and southern africa 3 4. Requires advance planning for a wide range of international merger transactions. New multinational comesa merger notification regime in africa. Discussions centered on the implementation of the free trade area, comesa trade facilitation instruments, market access, the comesa competition regime, the regional payment and settlement system repss and the comesa standards and quality assurance sqmt programme. These regulations apply to all economic activities whether conducted by private or public persons within, or having an effect within, the common market, except for those activities as set forth under article 4.
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