ANGOLAN COMPETITION AUTHORITY BECOMES ACTIVE
Angola has joined the list of African countries that have an active, independent competition regulator. This follows the recent appointment of members of the board of directors of the Competition Regulatory Authority of Angola (Autoridade Reguladora da Concorrência, or ARC). The ARC succeeds the former Institute of Competition and Prices.
The Competition Law, 5 of 2018 (Law) is now fully enforceable. The Law applies all economic activities carried out or having an effect in Angola.
The Law prohibits certain anti-competitive horizontal and vertical agreements as well as the abuse of a dominant position. Contraventions of the Law expose companies to penalties of up to 10% of annual turnover. A leniency policy will be developed by the ARC, to allow for reductions in penalties in certain circumstances.
All mergers having an effect in Angola and meeting the notification thresholds are subject to prior notification obligations. The thresholds for notification are:
- The acquisition, creation or reinforcement of a market share of 50% or more in the Angolan market or a substantial part of it; or
- The acquisition, creation or reinforcement of a market share of 30% to 50% in the Angolan market or a substantial part of it, if at least two of the undertakings concerned individually achieved turnover in Angola of more than AOA 450 million (approximately USD 1,45 million or EUR 1,26 million) in the last financial year; or
- The combined turnover in Angola of all undertakings participating in the merger exceeded AOA 3,5 billion (approximately USD 11,24 million or EUR 9,78 million) in the last financial year.
The law makes provision for penalties for failure to notify and for prior implementation of mergers.