Administrative Discretion in GCC Merger Control

What is it about?

This article examines administrative agencies' influential yet discretionary role in merger control within the Gulf Cooperation Countries (GCC) context. Administrative authorities in charge of merger control, such as competition agencies, recognize the potential impact of mergers on the market and society and exercise their discretionary powers to balance merger enforcement. This is challenging in countries with nascent competition agencies like the GCC due to economic priorities, informal economies, lack of awareness and advocacy, etc. As companies merge, the market undergoes several alterations. Mergers can increase market concentration, leading to distortion and impediment of competitive markets. Conversely, mergers can lead to greater efficiencies, cost savings, and optimized use of resources. Therefore, addressing the discretionary powers of administrative agencies in merger control is of utmost importance, and in doing so, this article tackles and bridges a significant gap in the current scholarly literature on the matter in the GCC.

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