OECD kpcdb

1. Scope

Section 5 of the Act stipulates that no enterprise that produces or distributes any goods or services shall, with intent to maintain monopoly or restrictive trade practices in the market, merge or amalgamate with another enterprise that produces or distributes the similar or identical goods or services or purchase, either singly or jointly with its subsidiary enterprise, fifty percent or more of the shares of such enterprise or take over the business of such enterprise.

2. Assessment

Intent to control competition: Section 4 explains that where a merger, etc. results in more than 40% of the production or distribution of the total production or distribution of such goods or services within the State of Nepal, such merger, shall be deemed to have been made with intent to control competition.

3. Procedural rules

There are no procedural rules in place, nor an obligation to notify any transaction.

4. Remedies and sanctions

Anti-competitive merger or amalgamation shall be void, and such person or enterprise shall be subject to a fine not exceeding NPR 500,000. The Court may issue an order to stop such activity immediately.

 

 

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