The Law And Economics Analysis Of Merger Control In Ethiopia

Abstract

This research conducts a doctrinal analysis of the legal framework for merger control in Ethiopia. The primary focus is on the Trade Competition and Consumers Protection Proclamation No. 813/2013 (Articles 5-13), which prohibits mergers that significantly harm competition and the new Ethiopian Commercial Code (NCC) Proclamation 1243/2021 (Articles 565-577), which outlines merger procedures. Additionally, Proclamation 1263/2021 (Article 22) is considered, highlighting the Ministry of Trade and Regional Integration's (MoTRI) role in implementing merger control measures. The analysis will examine how these legal instruments address key aspects of merger control. The research will explore how the NCC and relevant regulations define relevant markets for assessing the competitive impact of mergers. The analysis will delve into the criteria established by the legal framework for identifying dominant market positions and potential anti-competitive effects arising from mergers, it will scrutinize how Ethiopian law evaluates potential harms to competition, such as price increases or reduced innovation, following mergers, will investigate whether the legal framework considers potential efficiency gains from mergers that could benefit consumers in certain cases and examine the process for reviewing proposed mergers by the Ethiopian Trade Competition and Consumer Protection Authority (Authority), including the factors considered in its decisions. By conducting a comprehensive doctrinal analysis, this research aims to provide a clear understanding of the legal framework governing merger control in Ethiopia and its effectiveness in promoting a competitive market environment that safeguards consumer welfare.