Local Nexus Test Under The Moroccan Merger Control Regime

As merger control enforcement continues to evolve in Morocco, the ambiguities of the local nexus test introduced by the 2023 Moroccan Merger Guidelines (Guidelines) are being increasingly scrutinized. The Moroccan Competition Council (MCC) intentionally drafted the local nexus test somewhat ambiguous in the Guidelines. This approach—not specific to Morocco—allows enforcers flexibility in excreting jurisdiction over transaction. Still, on the flip side this ambiguity introduces uncertainty, which requires parties to conduct more comprehensive assessments. In practices, this will require parties to balance higher transaction costs through increased assessment and regulatory risks. Consequently, businesses are seeking clarity. A look back at the MCC's practice since the Guidelines were introduced in 2023, provides some answers.