Regulation of Merger under the Ethiopian Competition Law

Abstract

This article examines Ethiopia’s competition and consumer protection laws, and focuses on merger regulation. It compares the merger regulations of the United States of America, European Union, United Kingdom and South Africa, and highlights lessons this comparison has for Ethiopia.

The article aims to answer the following questions:
1) What are the different types of mergers and what are their effects on competition?
2) How should merger regulation address threshold limits, pre-merger notification, and substantive tests for reviewing mergers?
3) How does competition law deal with joint ventures?
4) What are Ethiopia’s merger regulation’s major strengths and weaknesses?
5) What lessons could Ethiopia draw from international experiences to improve its merger regime?

It is organized into six sections. The first section reviews Ethiopian competition law, and explores the FDRE Constitution, Codes and recent Proclamations. The second and third sections explain different types of mergers, and elaborate on their effects and consequences. The fourth section discusses Ethiopian and international merger regulation, focusing on threshold limits, merger notification, tests used for merger assessment and the factors competition authorities consider when reviewing mergers. The fifth section looks into joint venture control. Finally, the article concludes with suggestions to improve Ethiopian merger regulation.

Keywords: competition law, merger, regulation, Ethiopia