- How does the Authority Evaluate and Examine Merger and Acquisition Requests?

To ensure Economic Concentration (M&A) processes do not negatively affect the market, the General Authority for Competition conducts a comprehensive evaluation process based on broad powers and precise criteria.

Information Gathering and Investigation Mechanisms

The Authority has the right to use several means to collect data necessary for the study (Articles 19-21):

1. Requesting Data: From deal parties or any other relevant parties.
2. Field Visits: Visiting business premises to review documents and interview employees.
3. Public Consultation: Publishing deal information and inviting the public and interested parties to express their views on it.

Technical Evaluation Criteria

According to Article Twenty-Two, the Authority considers several factors to estimate the impact on competition, including:

• Market Structure: Level of actual and potential competition locally and internationally.
• Product Substitutes: Availability of substitutes for consumers and ease of switching to them.
• Consumer Interest: Impact on prices, quality, variety, and innovation.
• Barriers: Difficulty of entry for new competitors or expansion of current ones.
• Financial Positions: Financial solvency of deal parties.
• Dominance Probability: Will the deal lead to creating or strengthening a dominant position?

This process aims to balance the economic benefits of the deal with maintaining a fair competitive environment serving the economy and consumer.

Reference: Implementing Regulations of the Competition Law (Articles 19-22) - General Authority for Competition