Overview Of The Algerian Merger Control Regime

Algeria operates a mandatory merger control regime that has become increasingly significant for companies active in the country or with sales into the Algerian market. Historically, enforcement was limited, but the reactivation of the Algerian Competition Council (ACC) in 2025 has marked the beginning of a more rigorous application of the rules. This means that transactions that may previously have flown under the radar now carry real compliance risk. The regime is built around a single market share threshold, which makes it relatively straightforward to trigger but potentially far‑reaching in its application. Because it is suspensory, deals cannot be implemented until clearance is granted.

Notification thresholds

The Algerian regime is triggered when a transaction results in a market share above 40 percent or further increases a market share of 40 percent or more in Algeria. Unlike other MENA jurisdictions that have recently moved to revenue based thresholds, Algeria continues to solely on market share. The regime applies to mergers, acquisitions of control, and the creation of joint ventures that perform the functions of an independent business. Control is understood broadly and does not require a majority stake. Control may be established through contractual rights, veto powers, or other arrangements that allow one party to exercise decisive influence. Because clearance is suspensory, parties must ensure they do not close the deal or take any irreversible steps until approval is received.

Local nexus test

The Algerian regime is notable for its broad reach. It applies not only to purely domestic transactions but also to foreign‑to‑foreign deals where Algeria is affected. The local nexus test focuses on whether the relevant product and geographic market includes Algeria. This means that even companies without subsidiaries or branches in the country may face a filing obligation if their products or services are sold in Algeria and their combined market share crosses the 40 percent threshold. For example, two global suppliers of industrial equipment could be required to notify if their combined Algerian sales account for a dominant position locally. This wide jurisdictional scope makes Algeria a potentially unexpected filing jurisdiction in cross‑border transactions.

Review timeline

Notifications are filed with the ACC. Once the ACC confirmed that complete filing has been submitted, the Council has 3 months to issue its decision. In practice, this timeline can be extended by requests for additional information, which effectively stop the clock. During this period, parties must maintain the status quo: they cannot integrate operations, transfer assets, or take steps that would make the transaction irreversible.

The Council may:

• grant unconditional clearance, allowing the parties to proceed without restrictions;
• clear the deal subject to commitments, which can include structural measures such as divesting parts of the business or behavioral commitments such as maintaining supply or granting access on fair terms. These conditions are designed to address competition concerns while still permitting the transaction; or
• prohibit the deal outright if the ACC concludes that no commitments could sufficiently remedy the anticompetitive effects. In such cases, the transaction cannot be implemented in unless the prohibition is overturned on appeal or authorized by the government on public‑interest grounds. Prohibitions may be challenged before the State Council.

Substantive test

The substantive assessment focuses on whether the concentration would harm competition, particularly by creating or strengthening a dominant position. The ACC examines factors such as the level of market concentration, the existence of barriers to entry for new competitors, the ability of customers to exercise countervailing power, and the potential for dynamic competition and innovation. Efficiencies may also be considered, but the burden is on the parties to show clear, verifiable benefits to consumers. Where concerns arise, the ACC may require remedies. These can take the form of structural measures, such as divestments, or behavioral remedies, such as commitments not to discriminate, to maintain supply, or to grant access on fair terms. Remedies may be proposed by the parties or imposed by the Council as a condition of approval.

Sanctions

The sanctions for non‑compliance are significant. Implementing a concentration without prior clearance can result in fines of up to 7 percent of revenue achieved in Algeria. Breach of commitments imposed by the ACC may lead to fines of up to 5 percent of Algerian revenue. Providing the ACC with incomplete, false, or misleading information can also result in penalties and daily fines until the failure is remedied. In addition, the ACC has powers to impose interim measures during review to prevent irreparable harm to competition. Taken together, these provisions mean that merger control in Algeria should be treated as a material compliance risk, with the potential to disrupt deals and expose companies to serious financial penalties.

Recent developments

The Algerian competition regime had been inactive for some time. However, on 18 February 2025, Algeria reactivated its ACC by appointing a new president and members. This marks the end of a long period of inactivity and signals that merger control will now be actively enforced. The government has also indicated its intention to modernize the regime by moving closer to international best practice. Potential reforms under discussion include replacing the market share threshold with turnover thresholds, introducing clearer filing procedures, and strengthening institutional capacity. For companies, the practical implication is that Algerian merger filings should now be taken seriously. Clearance should be factored into deal planning, and the risk of in‑depth review or remedies should not be underestimated.

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