a tripartite report - Unctad

54 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE
a rule of reason approach where the Commission
and “materially” restrain or reduce competition (in
-
merger and the Commission would have to simulate
ably
and materially restrain or reduce competition.
In addition, the Commission has to prove that the
merged entity’s share of the market exceeds 35 per
cent. In other words, even if the Commission would
-
to merit the rejection of the merger by the Commission.
The next step would be to show whether this
petition
has a market share exceeding 35 per cent.
Strictly speaking, subsection (a) should be consid-
in addition
35 per cent. The issue should rather be whether the
competition. What happens after the analysis shows
market share is 34 per cent? The law prevents the
FCC from prohibiting such a merger.
With respect to the substantive test provided by
Section 11(1) and Section 5(6) of the Act, the
Commission Merger Guidelines identify three scenarios
that will eventually dictate the verdict of the
merger application. 55 The scenarios are as follow:
(i) Post Merger Firm’s Market Share below 35 per
cent
Most of such merger applications are approved
working days, as they are unlikely to prevent, restrain
or distort competition, but to the contrary
Merger
guidelines, the FCC has recognized that there are
certain grounds that may raise substantial competition
concerns, which necessitate further request
for information and hence full analysis that takes
up to 90 days, the FCA does not allow to block
mergers where the combined post merger market
share is below 35 per cent.
(ii) Post Merger Firm’s Market Share above 35
per cent and Acting alone the Firm can not
substantially restrain Competition
share exceeds 35 per cent, the Commission can
still approve a merger provided that parties to the
merger demonstrate to the Commission that act-
and materially restrain or reduce competition in
sidering
approval of such a merger with regard to
cant
period of time, the Commission shall consider
the following factors:
(a) The Number and Size of Participants In
the Market
(b) Barriers to Entry
(c) Vertical Integration
(d) Availability of Alternatives to the Services
or Goods Provided by the Merging Firms
(lower taxation or input costs as a result of
improved bargaining power).
(f) Effect of the Proposed Merger to
Consumers, Competition and the
Economy (e.g. likelihood of sustained
price increases, the removal of adequate
alternative supplies, the protection of
(iii) Post Merger Firm’s Market Share above
35 per cent and Acting alone the Firm can
substantially restrain Competition
If the post merger market share exceeds 35 per
materially restrain or reduce competition in the
prohibited according to Section 11 (1). However,
the applicant may apply for an exemption according
to Section 13 in order to effect the merger.
under the FCA 56
turnover or assets above threshold amounts set by
the FCC. The gazetted threshold is of Tanzanian Shillings
800 million. 57 If within 14 days after receipt of a
proposed merger should be examined, the merger