On Friday 12 July certain provisions of the Competition Amendment Act were enacted via a published notice in the Government Gazette. Dealmakers are now subject to more rigorous merger rules and the Competition Commission can break up companies it deems too big. But that is just the beginning. More regulations are on the way and experts say they have the potential to distort the process of competition rather than enhance it.
The Competition Commission and the Department of Trade and Industry have just become a lot more powerful. Not only do they now dictate the rules of any new merger activity in the country, but they have extensive powers in launching inquiries into current corporate structures and deals concluded in the past.
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