Competition Act, 1998 (Act No. 89 of 1998)Competition Commission RulesPart 6 - Merger Procedures34. Breach of merger approval conditions or obligations |
| 1) | If a firm appears to have breached an obligation that was part of an approval or conditional approval of its merger, the Commission must deliver to that firm a Notice of Apparent Breach in Form CC 19, before taking any action— |
| a) | in terms of section 14(5) to revoke that approval or conditional approval; or |
| b) | in terms of section 61 or 62. |
| 2) | Within 10 days after receiving a Notice of Apparent Breach, a firm referred to in sub-rule (1) may— |
| a) | submit to the Commission a plan to remedy the breach; or |
| b) | request the Competition Tribunal to review the Notice of Apparent Breach on the grounds that the firm has substantially complied with its obligations with respect to the approval or conditional approval of the merger. |
| 3) | If a firm submits a plan to the Commission in terms of sub-rule (2)(a), the Commission may either— |
| a) | accept the proposed plan; or |
| b) | reject the proposed plan, and invite the firm to consult with the Commission concerning the apparent breach, with the aim of establishing a plan satisfactory to the commission by which all of the firm's obligations with respect to the approval or conditional approval may be satisfied. |
| 4) | If the Commission accepts a proposed plan, in terms of either sub-rule (3)(a) or (b), the Commission must monitor the firm's compliance with the plan. |
| 5) | The Commission may act in terms of section 14(5) to revoke the approval or conditional approval of a merger referred to in sub-rule (1), or in terms of section 61 or 62, only if— |
| a) | the firm concerned does not respond to the Notice of Apparent Breach within 10 days after receiving it, in the manner anticipated in sub-rule (2); |
| b) | the firm concerned does not agree to meet, or fails to meet as agreed, with the Commission, as required by sub-rule (3)(b); |
| c) | the firm and the Commission are unable to agree a plan as contemplated in sub-rule (3)(b); |
| d) | the firm acts in a manner calculated to frustrate the Commission's efforts to monitor compliance with a plan, as required by sub-rule (4)(a); or |
| e) | the firm fails to employ its best efforts to substantially comply with a plan established in terms of sub-rule (3). |