South Africa: Implemented Revised Guideline on Small Merger Notification including digital or technology markets

On 1 December 2022, the Revised Guideline on Small Merger Notification came into effect. The Revised Guideline empowers the South African Competition Commission to require that it be informed of all small mergers and share acquisitions under the normal turnover or asset value. The revision responds to the concerns that potentially anti-competitive acquisitions in digital or technology markets are escaping regulatory scrutiny due to the acquisitions taking place at an early stage in the life of the target before they have generated sufficient turnover or accumulated capital and physical assets that would trigger mandatory merger notification. This is particularly the case where the target firm valuation is high due to the prospective future value of the concept, technology, intellectual property or skills of the target firm.