Competition Policy and Inequality: The Role of Mergers and Acquisition Adjudications in South Africa

ABSTRACT This study aligns with Sustainable Development Goal (SDG) 10 by addressing income inequality in South Africa through competition policy, particularly mergers and acquisitions (M&A). While prior literature has focused on the corporate and market power effects of M&As, the socioeconomic implications for inequality remain underexplored. This study fills this gap by analyzing the impact of M&A adjudications on income distribution in South Africa, using household‐level and cross‐provincial data. The main methodology involves the Method of Moments Quantile Regression (MMQR), allowing for a nuanced analysis across different income groups. At the micro level, the study finds that cumulative mergers (LMA) positively impact household expenditures, particularly for lower‐ and middle‐income groups. At the same time, the interaction between LMA and regulatory conditions (SMC) suggests that well‐designed regulations can enhance consumer benefits. At the macro level, LMA disproportionately benefits wealthier households, exacerbating inequality, though regulatory interventions mitigate this effect. For South Africa, the findings suggest that M&A policies should enhance market efficiency while ensuring equitable benefits across income groups. The key policy takeaway is that regulatory frameworks must balance competition and consumer welfare to prevent wealth concentration and promote inclusive economic growth.