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On January 15, 2026, the Office for Competition within the Malta Competition and Consumer Affairs Authority launched a long-awaited public consultation on proposed reforms to Malta's merger control regime.
Merger control prevents harmful deals that could create monopolies, suppress innovation and foreclose markets. Under current rules, certain transactions, mostly acquisitions, mergers, and joint ventures, must be notified and cleared by the Office before they proceed.
Malta's economy has changed significantly since the law was last touched in 2007 but the regime has remained largely unchanged for nearly two decades. The proposed amendments introduce important modernisations.
The Office proposes raising turnover thresholds from €2.3 million to €4.5 million. Additionally, at least two parties must each generate €800,000 in Malta turnover. This is meant to target transactions that can materially affect competition while cutting red tape on deals with little impact on Malta's economy.
Smaller deals will not necessarily escape scrutiny. Mirroring a growing EU trend, the Office proposes "call-in" powers to review below threshold transactions where competition may be affected. This should address concerns that higher thresholds could allow killer acquisitions or significant mid-sized deals to slip through.
The exception is where a transaction has already been completed. In any case, the Office retains power to investigate deals under traditional competition rules even if a transaction has been implemented.
The introduction of a call-in power subject to the Office's discretion might unsettle M&A participants and their advisors. The Office should provide clarity on exercising this power. It could set out objective criteria in the law or in published guidelines and should also allow parties to seek pre-clearance within defined timeframes.
The regime also receives important clarifications based on past cases and experience. The proposed amendments confirm that only joint ventures meeting applicable turnover thresholds will require notification. This departs from the Office's current practice, which requires all joint ventures to be notified regardless of turnover. The Office also proposes removing the mandatory notification deadline, reflecting existing practice where extensions were routinely granted.
A further proposal, the increase in fees, is likely attract attention. While the current €163.06 fee is undisputably low compared to other EU Member States, the new fees will be of €1,000 for simplified notifications, €6,000 for standard notifications and €20,000-€35,000 for in-depth reviews.
The increases may come across as substantial, but, in principle, they are justified because merger control is resource-intensive and time-sensitive for both the Office and parties. However, as fees rise, it will be important that such fees support the ongoing strengthening of the Office's capabilities, including additional resources and enhanced digital tools.
The consultation closes on 30 January 2026 and the Office is encouraging stakeholders to submit views by then. The proposed reforms address longstanding gaps in Malta's framework. However, some changes require careful analysis and due consideration for stakeholder input.
This article was first published in ‘the Corporate Times' on 25/01/2026.
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