SRS Legal Shots: Merger control Mozambique – temporary exemption from gun jumping fines by the CRA

The Mozambican Competition Authority (CRA) has published a Notice, with effect from 6 January 2025, granting an exemption from the penalties foreseen under Law no. 10/2023, of 11 April (or the Mozambican Competition Act) for cases of “gun jumping”.

The exemption is granted to interested parties who, within a period of 6 months from the date of the Notice (i.e., until 6 July 2025) voluntarily report to the CRA transactions concluded up to 31 December 2024 in breach of the mandatory filing and stand-still obligations (an infringement known as gun jumping).

Pursuant to the Mozambican Competition Act (articles 23 and 24) and the Competition Law Regulation, as amended by Decree 101/2021 of 31 December, relevant transactions are those in which participating companies reach certain turnover and/or market share thresholds in Mozambique and are thus subject to mandatory filing.

This is the second time the CRA has granted an exemption of this nature, the first in 2023.

It should be noted that the CRA has been very proactive in the field of merger control, and that gun jumping cases are among the CRA’s top priorities. In 2022, the Authority imposed its first-ever fine for gun jumping in the amount of 41.1 million meticais (approximately €624.000).

It is highly recommended that companies be alert and consider whether the statutory filing thresholds may have been met regarding transactions concluded less than five years ago, since such transactions may benefit from the gun jumping exemption just announced. Thus, avoiding exposure to the penalties foreseen for breaching the Competition Law.