It is now mandatory for companies who wish to merge to notify the Independent Consumer and Competition Commission (ICCC).
Parliament passed the amendments last week.
A very happy ICCC team today welcomed the new law that now gives the competition watch dog some power to prosecute.
The amendments are for section 81 and 82 of the Independent Consumer and Competition Commission Act 2002, provisions for voluntary merger notification.
Section 81 and 82 of the ICCC Act respectively provide for clearance and authorisation processes that allow the ICCC to review potentially anti-competitive business mergers and acquisitions and determine whether or not to allow the parties to proceed with the proposed transactions.
In welcoming the amendments to Section 81 and 82 of the ICCC Act, ICCC Commissioner Paulus Ain said it relieves the ICCC from chasing the business community for mergers and acquisitions under the voluntary notification regime.
He said having a voluntary system of premerger notification for the last 16 years has not worked well for the economy.
The amendments now give the ICCC a greater regulatory control of potentially anti-competitive business mergers and acquisitions in PNG.
However, not all acquisitions will pose serious competition concerns, therefore, the amendment provides for thresholds to filter and concentrate more on those acquisitions that will raise serious anti-competitive concerns.
There are two main thresholds for notification. They are:
- If the value of the proposed transaction is K50 million or more, or,
- The market share of the acquirer is likely to be 50 percent or more after the acquisition.
If a proposed business acquisition falls within either of these thresholds, they are required by law to give notice to the ICCC by applying for a clearance or authorisation.