OECD kpcdb

1.Scope

 

Under Section 30, the following acts are included under the merger control provisions: (a) merger of businesses, (b) consolidation of businesses, (c) purchasing or acquisition of other business by a business, (d) joint-venture of businesses, (e) performing other means of collaboration among businesses specified by the Commission. 

 

As per Section 31, mergers will be prohibited where it would result (i) in a market share that would exceed a level determined by the MmCC; (ii) intended to result in excessive market dominance; (iii) intend to reduce competition in the market to only a few competitors.

 

Section 32 of the Competition Law stipulates that no collaboration of business shall be carried out if the combined market share of business collaboration is exceeded to the market share as will be specified by the MmCC.

 

Exemption: Under Section 33, any prohibited collaboration of business or prohibition under section 31 may be exempted in the following circumstances;

 

a)  where the business, after collaboration as per Section 30, is still in the size of SMEs specified under any existing law;

b)  where one or more of businesses involved in business collaboration is or are at the risk of collapsing or of becoming bankrupt;

c)  where collaboration among businesses promotes exports or supports the development of technique and technology or establishes an entrepreneurial business.

2. Notification

The Commission is empowered under the Competition Law to determine the form, the procedures and the conditions for merger control. For the time being, mergers do not need to be notified and such rules have not been issued yet.

3. Assessment

The MmCC has not issued any guidelines on whether it will apply a substantial lessening-of competition test and which criteria it will use to determine whether a merger should be prohibited.

4. Remedies and Sanctions

Remedies and administrative sanctions: See SectionI.4 on Remedies and administrative sanctions.

 

Criminal sanctions: Any person who violates the prohibitions contained in Section 31 or Section 32 shall, on conviction, be punished with imprisonment for a term not exceeding two years or with fine not exceeding Kyat one hundred lakhs or with both.

 

 

* This information is based on Competition Law in Asia-Pacific: A Guide to Selected Jurisdictions (2018).