ECA announces implementation of ex-ante merger control system starting from June 2024 – Egypt Today

ECA announces implementation of ex-ante merger control system starting from June 2024 – Egypt Today

CAIRO - 26 May 2024: The Egyptian Competition Authority (ECA) has announced the implementation of an ex-ante merger control system starting from June 2024. This was revealed by the Chairman of the ECA, Mahmoud Momtaz, during a press conference.

The primary objectives of this new system are to achieve legal certainty and maintain market stability.

 

The ex-ante merger control regime plays a crucial role in fostering domestic and foreign investments, eliminating obstacles to entering and expanding markets, and bolstering the competitiveness of market frameworks.

 

This announcement came after legal amendments were made to the Egyptian Competition Law (ECL) under the provisions of Law No. 175 of 2022, and the corresponding Executive Regulations issued by the Prime Minister's Decree No. 1120 of 2024. 

 

These recent amendments have expanded the ECA's responsibilities to include ex-ante control over economic concentrations, such as mergers and acquisitions.

 

The Executive Regulations provide clarity on important implementation details, including criteria for calculating turnover, notification requirements, and guidelines for assessing the competitive impact of economic concentrations. 

 

Momtaz emphasized that this law aims to diversify the production structures of the Egyptian economy, encourage small and medium-sized enterprises (SMEs), and enhance consumer welfare.

 

The ECA may authorize an economic concentration in certain cases, such as if it