Georgia merger control
Produced in partnership with Mgaloblishvili Kipiani Dzidziguri
Georgia merger control

The following Competition practice note Produced in partnership with Mgaloblishvili Kipiani Dzidziguri provides comprehensive and up to date legal information covering:

  • Georgia merger control
  • 1. Have there been any recent developments regarding the Georgia merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Georgia?
  • 2. Under Georgia merger control law, is the control test the same as the EU concept of ‘decisive influence’? If not, how does it differ and what is the position in relation to ‘minority (non-controlling) shareholdings’?
  • 3. Are joint ventures caught by the national merger control provisions (including non-structural, cooperative joint ventures)?
  • 4. What are the merger control thresholds and would a purely foreign-to-foreign transaction be caught (commenting on any ‘effects’ doctrine/policy if relevant)?
  • 5. Are there any specific issues parties should be aware of when compiling and calculating the relevant turnover for applying the jurisdictional thresholds?
  • 6. Where the jurisdictional thresholds are met, is notification mandatory and must closing be suspended pending clearance?
  • 7. Is there any discretion to review transactions that fall below the notification thresholds?
  • 8. Is it possible to close the deal globally prior to local clearance?
  • 9. Is there a deadline for filing a notifiable transaction and what is the timetable thereafter for review by the Competition Agency?
  • More...

A conversation with Baqar Palavandishvili lawyer at Georgian law firm Mgaloblishvili Kipiani Dzidziguri (MKD), on the key issues on merger control in Georgia.

NOTE–to see whether notification thresholds in Georgia and throughout the world are met, see Where to Notify.

1. Have there been any recent developments regarding the Georgia merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Georgia?

 On 8 May 2012, Georgia adopted the Law of Georgia on Competition (the Law). In March 2014 substantial changes were made to the Law, with regards to its scope, the definition of dominant position and agreements restricting competition, concentration (which includes mergers), bad faith, conducts of economic agents and sanctions for failure to comply with the Law. Also, in September 2014, specific rules on mergers were approved.

The Law established the Competition Agency (the Agency) as the supervising body for competition policy. The head of the Agency was appointed in April 2014. The Agency has been relatively active examining various topics, including dominant position, agreements restricting competition, State aid and concentrations.

We are not aware of any expected developments for the coming year.

In terms of 'hot' issues, in 2017 the Agency approved the acquisition by pharmaceutical company GPC of 100% stock in ABC Pharmacia. The Agency, in determining, whether the concentration restricted effective competition, stressed, among others,

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