Enhancing merger control to support economic growth in South Africa

Policy Paper 44

Abstract

Competition policy – and merger control in particular – is an important policy to support productivity and innovation, investment, and long-run economic growth. This paper argues that merger control, when compared to anti-cartel enforcement, has become dominated by discretionary policy preferences fuelled by the expansive ‘public interest’ provisions of the amended Competition Act. Drawing on theoretical and empirical evidence, the paper identifies ministerial discretion, an outsized and opaque role for public interest concerns and the introduction of “vulnerability” as factors that limit the focus of merger control on competition matters.