Small Merger Notification In Digital Markets

On 7 May 2021, the Competition Commission ("Commission") issued Draft Guidelines on Small Merger Notification ("the Guidelines") for public comment. The draft Guidelines reinforce the existing approach of the Commission to the notification of small mergers that may result in anti-competitive effects as well as introducing new requirements for parties entering into transactions in the digital markets.

A small merger is classified as one which does not meet the prescribed monetary thresholds which trigger compulsory merger notification and approval. The current monetary thresholds for compulsory notification are where the combined value of the merging parties' annual South African turnover and/or assets (in any combination) equals or exceeds R600 million and the annual South African turnover or the asset value of the target firm is at least R100 million. Where these thresholds have not been met, it is not compulsory for the parties to notify the Commission of their