THE Competition and Consumer Affairs Commission (CCAC) has advertised an invitation for public and private sector stakeholders and members of civil society to review the draft Merger Control and Review Bill for Guyana, and submit feedback for consideration.

A merger of companies, as opposed to takeovers, is effected by the undertakings of two or more companies of approximately the same size consolidating into one of those companies, or into a completely new company.

Legislation to control the merger and acquisition of companies is imperative, as the consolidating enterprises may significantly reduce, or even eliminate market competition. The most obvious way of preventing companies from gaining too much market power, which may be to the detriment of consumers, is to prohibit mergers which seem likely to result in a substantial lessening of competition.

A short title of the draft Merger Control and Review Bill for Guyana states, if enacted, that the Act will provide for the review and control of mergers for the purpose of promoting, maintaining and encouraging competition.

A free market that is competitive significantly benefits consumers, and is also good for business. Competition between enterprises encourages innovation among firms, resulting in quality products, efficient processes and cheaper prices of goods and services, as consumers will ultimately have the benefit to choose from an array of choices produced and offered by competing enterprises.

Section 3 of the draft Merger Control and Review Bill lists the ‘objects of the act’ as being to regulate mergers which could result in, harm to competition and adverse effects to the interest of consumers and the economy and to create a business environment which promotes, maintains and encourages competition and enhances economic efficiency in production, trade and commerce.

Section 10 of the draft bill lists the ‘general powers of the Commission’ as being able to order an enterprise to provide the CCAC with information necessary to assist it in its investigations. Additionally, the Commission shall have the power to summon and examine witnesses and take evidence relevant to investigations.

Further, as Section 28 of the draft bill notes, the CCAC finds that a proposed merger is likely to result in unfair competition or adverse effects to the interests of consumers or the economy, it may apply to the High Court for various orders, including but not limited to an order to prevent the merger.

The draft bill also equips the CCAC to revoke its decision to authorise a merger, if an enterprise that is a party to the merger appears to have breached an obligation or condition that was the basis upon which the Commission’s approval was granted, pursuant to Section 31, a breach of which will result in an offence.

Persons interested in scrutinising the draft bill may access it on the CCAC website at ccac.gov.gy and those desirous of offering written feedback may email the Commission at cpu@ccac.gov.gy. The deadline for submission of comments is June 21, 2021.

The CCAC will also hold virtual consultations on June 11 and 18, 2021 via Zoom. The meeting ID is list as 898 151 1226 and passcode g7JRRr.