CAMEROON LAW AND PRACTICE Contributed by: Serges Martin Zangue, Brandon Ntahdui, Joel Noussie, Julienne Happi, Mathias Choudjem, Maeva Pokem, Winy Felifack and Synthia Pamela Dounking Amfouo, Zangue & Partners
General Overview of the Requirements and Process All investments should be made in accordance with the applicable legal and regulatory provisions. The competent authorities may, under their monitoring powers or upon denunciation by any interested party, examine any investment transaction in order to ensure that it complies with the applicable legal and regula - tory provisions. If, in the course of their investigations, they identify breaches of the regulations in force, the person concerned shall be invited to provide explana - tions in accordance with the applicable procedure and in full respect of the rights of defence. As regards the authorities that ultimately decide to challenge an FDI transaction, some of them have gen - eral jurisdiction, while others have specific jurisdic - tion in relation to the sector of activity concerned. The authorities with general jurisdiction include, notably, the National Competition Commission, the CEMAC Commission through the Community Competition Council and the BEAC. Sectoral authorities notably include COBAC in the banking sector. The foreign investor has the ability to appeal any deci - sion from the relevant authorities before the compe - tent courts. Consequences of Making an Investment Without Prior Approval of the Relevant Authority Making a foreign investment without the prior authori - sation of the competent authority may result in pecu - niary penalties or non-pecuniary penalties. Pecuniary penalties are fines that generally represent a percentage of the turnover or the amount of the transaction. Non-pecuniary sanctions may include: • various injunctions to the parties to dissolve the transaction, dispose of a number of assets or shares, separate the combined business or assets, etc; or • withdrawal of authorisation or prohibition of all or part of certain transactions or activities.
• the structure of all relevant markets; • the market position of the companies concerned and their economic and financial strength; • the interests of intermediate and final consumers; • the evolution of technological progress insofar as this is to the advantage of consumers; and • the competitiveness of the companies concerned in the face of international competition. 6.3 Remedies and Commitments In Cameroon, the relevant authorities may request or require various types of remedies or commitments to address potential competition concerns. The competent authorities may in particular effect structural remedies by: • ordering the parties to divest themselves of a cer - tain number of assets or shares so as to eliminate the harmful effect on competition; • ordering the parties involved in the proposed oper - ation not to proceed therewith, or to divest part of their assets or shares in such a way as to respect the level of competition in the market, where it is established that a proposed merger or acquisition will appreciably reduce competition; or • ordering the cessation of joint control. The competent authorities may also decide on any other appropriate interim measures to restore effective competition, where necessary. These remedies aim to ensure that the merger does not significantly impede effective competition in the market, protecting consumer interests and maintain - ing a healthy economic environment. 6.4 Antitrust/Competition Enforcement Ability of the Relevant Authority to Block or Challenge FDI Before or After the Investment is Made In Cameroon, the regulations in force confer to the relevant authority the ability to block or otherwise challenge FDI, either before or after the investment is made, notably when the transaction is not in compli - ance with the applicable laws.
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