Andean Community
(Last updated 28/04/09)

The Andean Community is a subregional organization endowed with an international legal status, which is made up of Bolivia, Colombia, Ecuador, Peru and Venezuela and the bodies and institutions comprising the Andean Integration System (AIS).

Located in South America, the five Andean countries together have 120 million inhabitants living in an area of 4 700 000 square kilometers, whose Gross Domestic Product in 2002 amounted to 260 billion dollars.

All integration processes pass through stages that can be differentiated according to the degree of commitment assumed by their member countries.

In a free trade area –considered the first stage— the only commitment is the reciprocal opening up of national markets, which is obtained by eliminating tariffs and trade restrictions; in a Customs Union, a uniform common external tariff applicable to imports from third countries is added; and in a common market, not only goods and services, but also factors of production (capital and labor) are liberalized.

Presidential Commitment

At their Eleventh meeting, in Cartagena, Colombia in May 1999, the Presidents of Bolivia, Colombia, Ecuador, Peru, and Venezuela assumed a commitment to "establish the Andean Common Market by the year 2005, at the latest, by creating the conditions for adding to the free circulation of goods, the unimpeded movement of services, capital, and people in the Subregion."

The Andean leaders, at the Twelfth Summit, in Lima in May 2000, ordered an agenda to be prepared, identifying the specific objectives and measures and subject to annual programming, in order to move toward the formation of the Common Market.

At their Thirteenth Meeting, held in Carabobo in June 2001, the CAN Presidents handed down precise instructions for speeding up efforts in that direction, referring to trade in both services, capital, and persons, and in goods. They ordered a working program to be prepared leading to the full and effective operation of the Customs Union through the adoption of a Common External Tariff and a Common Agricultural Policy, among other measures.

Competition

The Andean Community has a series of provisions for preventing or counteracting distortions in competition in the Subregion produced by dumping and subsidies, practices that restrict free competition, and others with a similar effect.

The representative of any national industry that is affected can make a complaint or submit one on behalf of that industry or member country through the national integration bodies.

Dumping

The Community provisions that are applicable to imports affected by dumping are Decisions 456, when the imports affected by dumping are native to an Andean Community Member Country and 283, when those products originated in a third country and affect the products exported from one Member Country to another, or when two or more Member Countries are affected by dumping practices and the product is subject to the Common External Tariff (CET).

Dumping is a price discrimination practice that occurs when a company exports its products to another country at prices lower than those at which the products are sold in its domestic market.

Dumping occurs when, in the course of normal trading operations, a product’s export price is lower than the domestic price of a similar product intended for consumption in the exporting country.

Community provisions stipulate that specific adjustments must be made to both the export price and the selling price in the domestic market of the exporting country, so that the two values can be compared fairly. These adjustments are needed because product prices vary in each operation due to differences in the selling conditions and terms in the domestic and export markets, such as applicable taxes and duties and different physical characteristics, among other things.

The dumping margin is the difference between the adjusted domestic price and the adjusted export price. A dumping margin of less than a 5 percent difference in export price in the trade of products native to a Member Country or of less than 2 percent in that of products originating in a third country, is considered insignificant.

Another condition that must be met in the case of imports affected by dumping is that the national production of the affected Member Country that is intended for the domestic market or for export, as the case may be, must also be seriously harmed or in danger of serious harm because of the dumping.

The measure to be taken in this case is the application of so-called "anti-dumping duties" to each one of the exporters investigated, but not necessarily to all of the products imported from the country of origin of the exporter investigated.

The investigation period is six months, which can be extended for a further two months in the case of complaints made under Decision 456 and four months, which can be extended for a further two months, in the case of complaints made pursuant to Decision 283.

Subsidies

Community provisions that are applicable to imports affected by subsidies are Decisions 457, when the imports affected by dumping are native to an Andean Community Member Country and 283, when those products originated in a third country and affect the products exported from one Member Country to another, or when two or more Member Countries are affected by subsidies and the product is subject to the Common External Tariff.

A subsidy exists if the recipient is benefited by a direct government or public transfer of funds, tax remission or failure to collect public taxes, furnishing of goods or services that are not a part of the general infrastructure, or procurement of goods at a cost higher than the market price, or the existence of some sort of income or price support.

The subsidy must also be "specific" –in other words, it must favor a given company, industry, or group of enterprises or industries above others.

The amount of the subsidy must be determined by quantifying the net benefit obtained per unit of measurement of a product, that is to say, by deducting the expenses incurred in order to enjoy the subsidy.

Another condition that must be met in the case of imports affected by subsidies is that the national production of the affected Member Country that is intended for the domestic market or for export, as the case may be, must be seriously harmed or in danger of serious harm because of the subsidy.

The investigation period is six months, which can be extended for a further two months, in the case of complaints made under Decision 457 and four months, which can be extended for a further two months, in the case of complaints made pursuant to Decision 283.

The measure to be taken in the case of subsidies is the application of so-called "compensatory measures" to all of the products imported from the exporting country that engages in that practice.

Free Competition

Practices that restrict free competition are the agreements, parallel behaviors, or practices coordinated between companies that cause or could cause competition to be restricted, impeded or falsified and the abusive exploitation by one of several enterprises of a dominant market position.

One or several enterprises enjoy a dominant market position when they are able to act independently, without considering their competitors, buyers or suppliers because of factors such as holding a significant share of respective markets, the supply and demand characteristics of given products, the degree of technological development of the products involved, and the competitors’ access to financing and supplies, as well as distribution networks.

Decision 285 is applicable when the restrictive practices originate in the Subregion or when a company that carries out its economic activities in a Member Country is involved. Subregional origin exists when the practices are carried out by enterprises whose economic activities are performed in one or more Member Countries. Involvement occurs when the practice is carried out between enterprises whose activities are performed in one or more Member Countries and companies located outside the Subregion.

Member Countries and enterprises with a legitimate interest are authorized to submit a request.

The investigation period runs for two months as of the publication date of the Resolution that launches the investigation.

The General Secretariat will hand down its decision through a declaration of prohibition if it determines the existence of a harmful or potentially harmful practice that restricts free competition. It can also decide to take measures to eliminate or alleviate the distortions that gave rise to the complaint. These measures can consist of authorizing the countries where the affected enterprises carry out their economic activities to apply preferential tariffs in relation to the subregional tariff commitments, to imports affected by practices that restrict free competition.

Information available at the Andean Community's website

Andean Subregional Integration Agreement "Cartagena Agreement"

Decision 632 of 2006, issued by The Andean Community Commission. Clarification of the second paragraph of Article 266 of Decision 486 (year 2000).

Decision 614 of 2005, issued by The Andean Council of Ministers of Foreign Affairs. Integral and Sustainable Alternative Development Andean Strategy.

Decision 616 of 2005, issued by The Andean Community Commission.
Enforcement of Decision 608 in the Republic of Ecuador.

Decision 602 of 2004, issued by The Andean Council of Ministers of Foreign Affairs, in an extended meeting with the Principal Representatives to the Andean Community Commission. Andean Regulation for the Control of chemical substances used in the illegal manufacture of narcotic drugs and psychotropic substances.

Decision 608 of 2005, issued by the Commission of the Cartagena Agreement concerning Normas para la protección y promoción de la libre competencia en la Comunidad Andina. (In Spanish)

Decision 562 of 2003, issued by the Commission of the Cartagena Agreement concerning Directives for the preparation, adoption and application of technical regulations in Andean Community member countries and at the community level.

Decision 501 of 2001, issued by the Commission of the Cartagena Agreement concerning
Border Integration Zones (BIZ) in the Andean Community.

Decision 506 of 2001, issued by the Commission of the Cartagena Agreement concerning
Recognition and acceptance of certificates of products sold within the Andean Community.

Decision 486 of 2000, (Andean Community's Industrial Property Regime), issued by the Commission of the Cartagena Agreement. Title XVI contains provisions concerning intellectual property-related unfair competition practices.

Decision 456 of 1999, issued by the Commission of the Cartagena Agreement, on anti-dumping practices in the Andean Community (CAN) countries. (in Spanish)

Decision 457 of 1999, issued by the Commission of the Cartagena Agreement, Normas para prevenir o corregir las distorsiones en la competencia generadas por prácticas de subvenciones en importaciones de productos originarios de Países Miembros de la Comunidad Andina. (in Spanish)

Decision 462 of 1999, issued by the Commission of the Cartagena Agreement concerning a
Provisions Regulating the Integration and Liberalization of the Trade in Telecommunications Services in the Andean Community.

Decision 439 of 1998, issued by the Commission of the Cartagena Agreement concerning a General Framework of Principles and Rules and for Liberalizing the Trade in Services in the Andean Community.

Decision 419 of 1997 ,issued by the Commission of the Cartagena Agreement concerning
Modification of Decision 376 (Andean System of Standarization, Accreditation, Testing, Certification, Technical Regulations and Monopoly).

Decision 283 of 1991, issued by the Commission of the Cartagena Agreement containing rules for preventing or correcting distortions in competition caused by dumping or subsidy practices.

Decision 284 of 1991, issued by the Commission of the Cartagena Agreement containing rules and regulations for preventing or correcting distortions in competition caused by restrictions on exports.

Decision 285 of 1991, issued by the Commission of the Cartagena Agreement, on rules and regulations for preventing or correcting distortions in competition caused by practices that restrict free competition.

Decision 291 of 1991 (Andean Community's Regime for the Common Treatment of Foreign Capital and Trademarks, Patents, Licensing Agreements and Royalties), issued by the Commission of the Cartagena Agreement. Includes competition rules for the registration of technology transfer and intellectual property licensing.

No information available

Decision 667
General framework for the negotiation of the Association Agreement between the Andean Community and the European Union

Decision 666
Participation of the Republic of Chile, as an Associate Member Country, in Andean Community bodies, mechanisms and measures

Decision 645
Granting of the status of Associate Member Country of the Andean Community to the Republic of Chile

Decision 641
Approval of the Memorandum of Understanding signed by the Member Countries of the Andean Community and the Bolivarian Republic of Venezuela

From April 21-25th 2008, the Andean Community Member Countries will be holding the Third Round of Negotiations for the establishment of an Association Agreement with the European Union.

Joint Committee EU-CAN Final Declaration Brussels, January 21, 2005

General Secretariat

Resolutions

Press Releases 1998-2009

Brazil, June, 2006
Interview by Roberto Pereira and editing staff of La ONDA digital of scientific politician Luis Moniz Bandeira
What does Brazil want with South America? (In Spanish)

Bogota-Colombia, January 30, 2006
Andean Market: Special segment of the daily newspaper La República of Colombia related to the Andean Community (In Spanish)

Lima-Peru, April 11, 2005
Competencia transparente en la Comunidad Andina (in Spanish)

Caracas-Venezuela, April 11, 2005
Comunidad Andina moderniza marco legal antimonopolio (in Spanish)

Lima-Peru, March 21, 2003
Modernization of Competition Law within CAN (in Spanish)

Lima-Peru, March 3, 2003
CAN country rules of competition to be harmonized
with European Union assistance

Lima-Peru, June 8, 2001
European cooperation for harmonizing rules
on free competition in the Andean region

No information available

Documents and Publications available at the Andean Competition Website

Publicaciones(In Spanish)

Andean Trade Pillar spokesman underscores progress of CAN-EU negotiations

Lima, April 11, 2008 - The spokesman for the Andean countries in the Trade Pillar of the negotiation of an Association Agreement between the Andean Community and the European Union, Eduardo Brandes, today reported that the first two rounds of those negotiations have progressed satisfactorily and that the Third Round, scheduled to take place in Quito, Ecuador on April 21 to 25, is expected to do also. For more information, refer to the Andean Competition Website

Andean countries enter final phase of preparations for the Third Round of Negotiations with the European Union

Lima, April 10, 2008.- Meetings of the Negotiating Groups on Political Dialogue and on Cooperation marked the beginning of the final phase of preparations by the Andean Community countries for the Third Round of Negotiations to reach an Association Agreement between the CAN and the EU that are slated to take place from April 21 to 25 in Quito, Ecuador. For more information, refer to the Andean Competition Website

CAN Secretary General points up the Latin American unity demonstrated in the Rio Group

Lima, March 7, 2008.- The Secretary General of the CAN, Freddy Ehlers, drew attention to the success of the Rio Group Summit where Colombia and Ecuador overcame their differences and the first step was taken toward their reconciliation through a handshake, in which Venezuela and Nicaragua joined. For more information, refer to the Andean Competition Website

CAN Secretary General hails OAS Resolution

Lima, March 6, 2008.- The Secretary General of the CAN, Freddy Ehlers, hailed the Resolution adopted yesterday by the Organization of American States (OAS) that opens the way to a settlement of the conflict between two “sister countries,” Colombia and Ecuador, and called it a positive advance. For more information, refer to the Andean Competition Website

Andean countries prepare for virtual Presidential Summit

Bogotá, Feb 14 (SP*). The Andean Community countries are seeking to hold a virtual Presidential Summit in which to undertake a major reform of the regional group, Freddy Ehlers, CAN Secretary General, reported at the conclusion of a meeting with the President of Colombia, Álvaro Uribe Vélez. For more information, refer to the Andean Competition Website

CAN-UE negotiations are analyzed from the viewpoint of the workers

Lima, Feb. 4, 08 - Representatives of more than a dozen trade union organizations of Bolivia, Colombia, Ecuador and Peru started today, during an international seminar, to examine the advances made in negotiating an Association Agreement between the Andean Community and the European Union and the different mechanisms for participation in it by the CAN’s Advisory Councils. For more information, refer to the Andean Competition Website

CAN economic and social indicators show positive performance in recent years

Lima, Jan. 21 08.- The economic and social performance of the Andean Community has been positive in recent years, according to a preliminary report on the principal indicators of the CAN countries over the 2004-2007 period. For more information, refer to the Andean Competition Website

CAN Statistics Officers direct efforts towards harmonizing social and environmental statistics

Lima, Jan. 21 08.- The Heads of the Statistics Institutes of the Andean Community countries announced that efforts at the Community level, which up to the moment have centered on economic issues, will henceforth be directed toward more comprehensive harmonization that will take in social, environmental and food security matters also. For more information, refer to the Andean Competition Website

Andean Business Council speaks out about the CAN crisis

Lima, April 27, 2006 - The Andean Business Advisory Council (CCEA),which groups together the five Andean countries’ most important business organizations and associations, today called upon the governments of the Member Countries to seek solutions to the current crisis in the Andean Community and backed the initiative to urgently convene a Presidential Summit. The call was made by Andean Business Advisory Council Chairman, José Luis Betancourt, from Venezuela, who held a press conference at the General Secretariat headquarters in Lima to reveal the Andean businessmen’s declaration about the present state of the Andean integration process. (5 May 2005). For more information, refer to the Andean Competition Website

CAN General Secretariat receives official communication of Venezuela’s withdrawal

Lima, April 22, 2006 - The General Secretariat of the Andean Community received a communication today at its Lima headquarters from Venezuelan Foreign Minister Alí Rodríguez Araque, formally reporting the country’s decision to repudiate the Cartagena Agreement, a fact that was confirmed by the Secretary General of that organization, Ambassador Allan Wagner Tizón. For more information, refer to the Andean Competition Website

The Andean Economic Community has founded a 'sub-regional competition authority (5 May 2005)

The Andean Competition Website reports all the main communication and member countries' news related to competition law (in Spanish).

Comunidad Andina de Naciones, Secretaría General
Eco. Graciela Ortiz
Gerente de Proyectos de Competencia
Paseo de la República 3895, Esq. Aramburú, San Isidro Lima 27 - Perú
Tel: (511) 41114 00
Fax: (511) 2213329
http://www.comunidadandina.org
gortiz@comunidadandina.org

Andean Community, General Secretariat

Andean Community, Tribunal of Justice

Andean Community, Competition Website

Breve análisis económico de la ley argentina de defensa de la competencia (In Spanish)

A brief economic analysis of law argentina up competition

Laws (In Spanish)

Ley 25.156

Decrees (In Spanish)

Decreto 89/2001, Reglamentación de la Ley No.25.156

Decreto 396/2001, Modificación de la Ley 25.156

Resolutions (In Spanish)

Legislacion on the Comisión Nacional de Defensa de la Competencia Website (In Spanish)

Resolucion 40/2001, Guia para la Notificación de Operaciones de Concentracion Economica (In Spanish)

Resolución 164/2001: Guidelines for economic concetrations

"Under the Argentina-Brazil Economic Integration and Cooperation Program, the governments of the two countries formalize their intent to establish a Program of Cooperation in Defense of Competition, in order to join national forces for their common benefit and to contribute to the effectiveness of competition policy within the context of MERCOSUR.

The type of cooperation that is the subject of this Memorandum will be coordinated, proposed, decided, and effected by CADE, for Brazil, and by the Argentine National Commission on the Defense of Competition.

In order to enjoy the benefits stemming from this Cooperation Program, the parties agree to:

1. Promote an exchange of information and experiences in the field of defense of competition.
2. Include the following in this Program:
(a) Exchanges of specific legislation, case law, and documentation;
(b) Human resources training programs;
(c) Exchange of information on topics related to competition policy;
(d) Creation of reciprocal cooperation mechanisms, including the seminars, courses, and exchanges of technical personnel;
(e) Bilateral meetings for discussion and decisions on topics related to the implementation of this Program."

Brazil: Report on Developments and Enforcement of Competition Policy and Laws (1994 - 1996)

Fusiones (Mergers)

Important Decisions

Conductas

Decisions

2006: "Argentina: The CNDC has an active year." Jorge Otamendi. Competition & antitrust review 2006, 8th ed., p. 36-40.

May 2005: Mendoza Courts Halt Second M&A Transaction contributed by Marval O'Farrell & Mairal

March 2005: Court Subordinates Transaction Approval to Creation of Antitrust Tribunal
by Marval O'Farrell & Mairal

Memoria 2006

Memoria 2005

Memoria Trianual 2002/2003/2004 (In Spanish)

Annual Report 2003 (In English and in Spanish)

Annual Report 1999-2000-2001 (In Spanish)

Annual Report 1998 (In Spanish)

Annual Report 1997 (In Spanish)

Report on Development and enforcement of Competition Policy and Laws- FTAA(Free Trade Area of Americas)- January/2003

Marcelo den Toom, "Antitrust as Industrial Policy Tool? The case of Argentina",
M. & M. Bomchil, Buenos Aires

Competition Law and Policy in Latin America: Peer Reviews of Argentina, Brazil, Chile, Mexico and Peru: Argentina

Competition problems in the distribution of television programs in Argentina, February 2007

OECD Competition Law and Policy in Argentina, October 2006

Fourth Latin American Competition Forum, El Salvador (San Salvador) from 11-Jul-2006 to 12-Jul-2006

The Forum held in El Salvador on 11 and 12 July. The agenda included discussions on: i) the relationships between competition authorities and sectoral regulators in Latin America; ii) competition policy and the financial sector in Latin America; iii) using competition to lower the costs of remittances; and iv) a peer review of Argentina.

Comisión Nacional de Defensa de la Competencia
Ministerio de la Producción
Av. Julio A. Roca 651
4 Piso, CP: 1322
Buenos Aires
ARGENTINA

Tel: (5411) 4349-3480/4097, 4349-4104/4107
Fax: +5411 4349-4125
Email: cndc@minecon.gov.ar

Secretaría de la Competencia, la Desregulación y la Defensa del Consumidor
E-mail: scdydc@mecon.gov.ar

Sistema Nacional De Arbitraje De Consumo
Av. Julio A. Roca 651, planta baja, Sector 8
Buenos Aires C1067AAB
Argentina
Tel: +5411 4349-4170 / 71 / 72 / 75
E-mail: snac@minproduccion.gov.ar

Comisión Nacional de Defensa de la Competencia

Secretaría de la Competencia, la Desregulación y la Defensa del Consumidor del Ministerio de Economia y Produccion

In Bolivia the adoption of a competition law for all sectors is a major concern.

The regulation of five specific sectors of economic activity (essential services, electricity, hydrocarbons, transport, and telecommunications) is undertaken by separate superintendencies, overseen by the agency SIRESE (Sistema de Regulación Sectorial). Each Superintendence has multiple legal mandates, of which promoting and protecting competition is one. In particular, the law covering SIRESE contains a single paragraph on competition-related matters, and regulations implementing the latter have yet to be elaborated.

Moreover, even though some of the transportation-related sectors are regulated by SIRESE, the perceived degree of competition is no more intense than in the rest of the economy. The likely obstacles to the promotion of competition are:

The absence of an economy-wide competition law (which itself reflects a lack of appreciation of the benefits of competition within Bolivian society as a whole);
Little capacity to enforce the existing competition-related provisions in SIRESE's law.
Previous attempts in 1997, 2000 and 2003 to draft an economy-wide competition law were not successful. This may be due to the costs and bureaucratic implications of adopting such a law and the political conditions in recent years.

However, there is continued will on the part of the Bolivian authorities to undertake reforms in the field of competition law and policy.

On 16 April 2008, Bolivia adopted a competition law for all sectors. The Superintendency of Enterprises is currently the competition authority dealing with the implementation of the competition law.

The regulation of five specific sectors of economic activity (essential services, electricity, hydrocarbons, transport, and telecommunications) is undertaken by separate superintendencies, overseen by the agency SIRESE (Sistema de Regulación Sectorial). Each Superintendence has multiple legal mandates, of which promoting and protecting competition is one. In particular, the law covering SIRESE contains a single paragraph on competition-related matters, and regulations implementing the latter have yet to be elaborated.

Moreover, even though some of the transportation-related sectors are regulated by SIRESE, the perceived degree of competition is no more intense than in the rest of the economy. The likely obstacles to the promotion of competition are:

No competition law yet in force. However the government is considering a Competition Law project. (in Spanish):
At present, draft Laws on competition and consumer protection are being prepared. Moreover, under the Andean Community Treaty, Bolivia is obliged to enact a competition law. However, given the uncertain political situation, the prospects that the new law will be adopted in such a short time cannot be guaranteed.

Legal Framework:

Political Constitution. Articles 134, 142 and 233

Investment Law

Sectoral Regulation Systems Law (Sirese). This Law provides an innovative and comprehensive approach toward competition for firms operating in the telecommunications, electricity, transportation, hydrocarbon, and water sectors. In these sectors, firms must operate according to principles of free competition and economic efficiency and, as in other competition laws of the region, conduct and merger transactions likely to restrict or distort competition are prohibited (OAS 1997b).

Andean Community

1. Decision 284 of 1991, issued by the Commission of the Cartagena Agreement containing rules and regulations for preventing or correcting distortions in competition caused by restrictions on exports.

2. Decision 285 of 1991, issued by the Commission of the Cartagena Agreement, on anti-competitive practices in the Andean Community (CAN) countries.

3. Decision 291 of 1991 (Andean Community's Regime for the Common Treatment of Foreign Capital and Trademarks, Patents, Licensing Agreements and Royalties), issued by the Commission of the Cartagena Agreement. Includes competition rules for the registration of technology transfer and intellectual property licensing.

4. Decision 486 of 2000, (Andean Community's Industrial Property Regime), issued by the Commission of the Cartagena Agreement. Title XVI contains provisions concerning intellectual property-related unfair competition practices.

For the Andean Community Competition Law Website, please click here

Bolivia - MERCOSUR

Bolivia - Mexico

COMPAL Global Annual Report 2005, COMPAL Programme: Projects for Bolivia, Costa Rica, El Salvador, Nicaragua and Peru (01/05/06)

Inventory of Domestic Laws and Regulations relating to Competition Policy in the Western Hemisphere- FTAA- Negotiating Group on Competition Policy- 2002

2009 Investment Climate Statement -Bolivia

Competition and Consumer Protection Policies in Latin America: New UNCTAD Publication (In Spanish)

COMPAL in Bolivia:
In Bolivia the adoption of a Competition Law for all sectors is a major concern. The COMPAL programme is a three-year Phase II Technical Assistance Programme on Competition and Consumer Protection Policies for Latin America supported by SECO (Switzerland). This programme will assist Nicaragua, Costa Rica, El Salvador, Peru and Bolivia. For more information, refer to UNCTAD COMPAL Website

The COMPAL Programme Project for Bolivia will concentrate its efforts on strengthening the enforcement capacities of the five Superintendencies (which constitute SIRESE) with a view to challenging existing anticompetitive practices. It is understood that the proposed measures will contribute to raising awareness of the benefits of adopting a comprehensive competition law and will complement efforts carried out through technical assistance.

It is worth noting that the Project for Bolivia foresees the possibility of supporting some activities once the Competition Law comes into existence.

Ministerio de Desarollo Económico
Viceministerio de Industria y Comercio Interno
Avda. Camacho 1488
Casila Postal 4430
La Paz
BOLIVIA

Tel: (5912) 372042/3/4
Fax: (5912) 370936

No information available

Text book of the Administrative Council for Economic Defense - CADE

Cartilha do Conselho Administrativo de Defesa Econômica - CADE (In Portuguese)

Introduction to the Competition Law in Brazil by Vicente Bagnoli, Lawyer, Master in Political and Economical Law by the Presbyterian University Mackenzie and Teacher of the Masters Degree in Law of the Presbyterian University Mackenzie, São Paulo, Brazil, e-mail: bagnoli@mackenzie.com.br

2005 draft Competition Law (-forthcoming-). President Lula presented the bill, officially, on 1 September, 2005. Its changes could be in place by next year. For a comparison of current provisions with proposed amendments, please click here.

Laws (In Portuguese)

Resolutions (In Portuguese)

Law No. 11.482, 31 May 2007 (In Portugese)

Law No. 8884, 11 June 1994 (Please note that this law was modified by Law NO.10149/2000)

Law No. 10149 of 21st December, 2000
(Law introducing amendments to the original Law)

Brazilian Antitrust Law

Amendment made to the Antitrust Law to introduce the Brazilian Settlement Program in May 2007

Regulation of Leniency Program

CADE Resolution 15/98, which regulates CADE procedures and formalities applicable to
concentration acts.

CADE Resolution 18/98, which regulates CADE procedures and formalities on competition issues.

Seae - SDE Merger Guidelines

Summary of Merger Control Regulations in Brazil. Guidelines on the abbreviated proceedings that have been adopted by the Brazilian Antitrust Agencies (In Portuguese)

Horizontal Merger Guidelines

Leniency Policy Interpretation Guidelines

ICN Anti-Cartel Enforcement Template 2009

ICN Anti-Cartel Enforcement Template 2005

Merger Notification and Procedures Template

Canada

Cooperation Arrangement Between the Commissioner of Competition, Competition Bureau of the Government of Canada, and the Council for Economic Defense, the Secretariat of Economic Law of the Ministry of Justice, and the Secretariat for Economic Monitoring of the Ministry of Finance of the Government of the Federative Republic of Brazil Regarding the Application of their Competition Laws.

United States of America

U.S. - Brazil Cooperation Agreement (26/10/99)

"...The mere enactment of a competition law is not enough to assure that markets will function well. World trade and welfare will only increase if national laws are implemented observing the principles of transparency and nondiscrimination among nations. This is why technical assistance should focus on institution building. It is less important to write new laws than to promote new, modern, independent, and transparent competition agencies. This is in line with the Panama Declaration, which resulted from the meeting of all competition agencies of the Americas in October 1998. The document expresses the participants' intention to "cooperate with one another, consistently with their respective laws, to maximize the efficacy and the efficiency of the enforcement of each country's laws, and to help disseminate the best practices for the implementation of competition policies, with emphasis on institutional transparency..."

The Group on Trade and Competition of the World Trade Organization (WTO) has also proved to be very useful for benchmarking and disseminating competition policy among the developing countries.

(Antitrust Policy in Brazil: Recent Trends and challenges Ahead: By Gesner Oliveira, Professor, Getulio Vargas Foundation in São Paulo, and President of CADE)

"Under the Argentina-Brazil Economic Integration and Cooperation Program, the governments of the two countries formalize their intent to establish a Program of Cooperation in Defense of Competition, in order to join national forces for their common benefit and to contribute to the effectiveness of competition policy within the context of MERCOSUR.

The type of cooperation that is the subject of this Memorandum will be coordinated, proposed, decided, and effected by CADE, for Brazil, and by the Argentine National Commission on the Defense of Competition.

In order to enjoy the benefits stemming from this Cooperation Program, the parties agree to:
1. Promote an exchange of information and experiences in the field of defense of competition.
2. Include the following in this Program:
(a) Exchanges of specific legislation, case law, and documentation;
(b) Human resources training programs;
(c) Exchange of information on topics related to competition policy;
(d) Creation of reciprocal cooperation mechanisms, including the seminars, courses, and exchanges of technical personnel;
(e) Bilateral meetings for discussion and decisions on topics related to the implementation of this Program."

Brazil: Report on Developments and Enforcement of Competition Policy and Laws (1994 - 1996)

Russia

Bilateral Agreement Between Russia and Brazil

Decisions
CADE’s decisions are subject to judicial review. However, limited competition experience and slowness on the part of Brazilian courts have meant that few CADE decisions have been referred to the courts. Thus, an overwhelming majority of recent merger cases have been approved after the first stage review (approx. 95%). In reality, only mergers resulting in a market share close to 100% have been subject to conditions. In fact, CADE has never completely blocked any merger.

Procedures
The competition authorities have 120 days to issue a decision. If CADE does not issue an opinion within this time, unless it requests additional information, the transaction is considered tacitly approved. In practice, a simple transaction may be approved within four months, but a complex submission will usually take more than six months.

In 1998, CADE introduced a two-stage system whereby straightforward cases are identified and resolved quickly . Efficiency defenses have to be considered only if harm to competition is deemed likely as a result of the transaction. If a transaction is neutral in terms of competition, it is approved without further considerations. Consequently, only a minority of more complex cases will require a second request for more detailed information. This, and other measures, has reduced the average waiting period significantly.

Failure to adhere to CADE’s guidelines for the submission of a notification of a transaction could result in a fine ranging from BRR 60,000.00 to BRR 6 million (approx. US$ 15,000 to US$ 3,000,000).

Competition Law in Brazil
By Johan A. Åkerud
Boccuzzi e Duarte Advogados Associados

Important cases by the Brazilian Competition Website

Pareceres 2005

Pareceres 2004

Pareceres 2003

Clipping 04 sept 2003

Brazil Peer Review of Competition Law and Policy (OECD) 2005

Annual Report on Competition Policy Developments in Brazil (OECD) 2005

Annual Report on Competition Policy Developments in Brazil (OECD) 2004

Annual Report on Competition Policy Developments in Brazil (OECD) 2003

Annual Report on Competition Policy Developments in Brazil (OECD) 2002

Annual Report on Competition Policy Developments in Brazil (OECD) 2001

Annual Report on Competition Policy Developments in Brazil (OECD) 2000

Annual Report on Competition Policy Developments in Brazil (OECD) 1999

Annual Report 2001-2006

Report on Development and enforcement of Competition Policy and Laws- FTAA (Free Trade Area of Americas)- January/2003

Inventory of Domestic Laws and Regulations relating to Competition Policy in the Western Hemisphere- FTAA- Negotiating Group on Competition Policy- 2002

Competition Law and Policy in Latin America (OECD) November 2006

Policy Brief: Competition Law and Policy in Brazil (OECD) September 2005

Antitrust Policy in Brazil: Recent trends and challenges ahead: By Gesner Oliveira, Professor, Getulio Vargas Foundation in São Paulo, and President of CADE

Report on developments and enforcement of Competition policy and laws in the Western hemisphere

OECD: Competition Law and Policy in Brazil -The substantive provisions of Brazil’s competition law appear in three articles (September 2005)

Improvement on Brazilian Antitrust Practice by Alessandro Marius Oliveira Martins, Associado, Antitruste e Imigração, Trench, Rossi e Watanabe Advogados

Brazilian Competition Website Website:

Papers

Working Papers 2000-2008

SEAE (Secretariat for Economic Monitoring)

Papers

Working Papers

News Releases

SDE launches Leniency Policy Interpretation Guidelines, 18 February 2008

SDE and the Federal Police signs cooperation agreement to crack cartels, 3 January 2008

President Lula Presents the Bill of the New Competition Law
President Lula presented the new bill that reforms the Brazilian Competition Policy System (BCPS) For more information, refer to the Secretaria de Acompanhamento Econômico (SEAE) Website

Conselho Administrativo de Defesa Econômica (CADE)
Ministério da Justica
Setor Comercial Norte-SCN
Quadra 2, Projecão C
CEP 70712-9020 Brasília DF
BRAZIL

Tel.: (5561) 426 8599
Fax: (5561) 328 5523
E-mail: cade@cade.gov.br
Website: www.cade.gove.br

Secretaria de Dereito Economico
(Secretariat of Economic Law)
Esplanada dos Ministérios, Bloco "T", 5 andar
CEP 70064-900 Brasilia DF
BRAZIL

Tel.: (5561) 429 3112/3409
E-mail: sde@mj.gov.br
Website: www.mj.gov.br/sde

Secretaria de Acompanhamento Econômico (SEAE)
(Secretariat for Economic Monitoring)
Ministry of Finance
Esplanada dos Ministérios, Bloco "P", sala 307
CEP 70048-900 Brasilia DF
BRAZIL

Tel.: (5561) 412 2360
Fax: (5561) 225 0971
E-mail: seae@fazenda.gov.br
Website: www.fazenda.gov.br/seae

Conselho Administrativo de Defesa Econômica - CADE

Secretaria de Direito Econômico - SDE

Secretaria de Acompanhamento Econômico - SEAE

The Chilean system of protection of Competition in markets is integrated by The Tribunal for the Defense of Free Competition and The Economic National Prosecutor's Office. The Government, through such institutions, execute the role of prevention, investigation and sanction of the conducts against the legislation of defence of Competition. The Decree-Law 211 of 1973,which text has been revised, coordinated and systematized by DFL n.1 of 2005, is the legal framework of this system.

The Chilean Congress approved some major reforms to its competition law in April 2009. A text of the proposed changes is available here (In Spanish).

Constitution. Article 19 (21) and (22) (In Spanish)

DFL N°1 del año 2005 del Ministerio de Economía, Fomento y Reconstrucción que fija el texto refundido, coordinado y sistematizado del DL N° 211 de 1973 (DFL n.1 of 2005 issued by the Ministry of Economy which establishes the revised, coordinated and systematized text of DL n. 211 of 1973) (in Spanish)

Agreements/Treaties

Acuerdo entre la Comisión Federal de Competencia de los Estados Unidos Mexicanos y la Fiscalía Nacional Económica de Chile sobre la aplicación de su legislación en materia de competencia (Agreement between the Federal Competence Commission of Mexico and the Economic National Prosecutor Office of Chile regarding the application of their competition laws) (14-06-04)

Memorándum de Entendimiento en materia de defensa de la competencia entre el Ministerio de Economía, Industria y Comercio de la República de Costa Rica y la Fiscalía Nacional Económica de Chile. (Memorandum of Understanding between the Ministery of Economy, Industry and Commerce of the Republic of Costa Rica and the Economic National Prosecutor Office of Chile regarding issues of defence of competition) (06-08-2003)

Memorándum de Entendimiento entre el Comisionado de Competencia (Canadá) y el Fiscal Nacional Económico (Chile) relativo a la aplicación de sus respectivas leyes de competencia (17-12-2001) (in Spanish)

Memorandum of Understanding between the Commissioner of Competition (Canada) and the Fiscal Naiconal Economico regarding the application of their competition laws (17-12-2001) (in English)

Free Trade Agreement with the US, Chapter 16, Competition Policy, Designated Monopolies and State Enterprises

Free Trade Agreement with Korea, Chapter 14, Competition Policy

Free Trade Agreement with the European Union, Chapter VII, Competition (In Spanish)

Free Trade Agreement with Mexico, Chapter 14. Competition policy, monopolies and state enterprises (In Spanish)

Free Trade Agreement with Canada , Chapter J, Competition Policy, Monopolies and State Enterprises

Free Trade Agreement with Japan, Chapter 14, Competition

Free Trade Agreement with Chile, Chapter VI, Competition Policy

Tribunal de Defensa de la Libre Competencia (Tribunal for the Defense of Free Competition)

Sentencias

Resoluciones

Informes de Ley de Prensa (in Spanish)

Report on Development and enforcement of Competition Policy and Laws- FTAA(Free Trade Area of Americas)- January/2003

Inventory of Domestic Laws and Regulations relating to Competition Policy in the Western Hemisphere- FTAA- Negotiating Group on Competition Policy- 2002

Chilean System for the Defence of Free Competition: Is there a need for previous authorisation for approval of mergers? By Rodrigo Ferrada and Nicole Nehme, published in Gaceta Jurídica No. 240, 2005 www.gacetajuridica.com (In Spanish)

Competition Law and Policy in Chile: A Peer Review 21-Jan-2004 This report, which provides an overview of competition law and policy in Chile, was the basis of an in-depth peer review at the first meeting of the OECD/IDB Latin American Competition Forum on 7-8 April 2003.

Loreto Bresky, Associate of Albagli, Zaliasnik & Cïa, Chile Un Avance Importante published in El Mercurio, September 2005 (In Spanish).

Ferrada Nehme Newsletter CoRe (Competition and Regulation).

18 December 2007:The lower house of the Chilean Congress approved and passed to the Senate a bill that reforms the Anti-trust law (taken from Practical Law Company)

February 2007: A new Chilean law on unfair competition has come into effect which expressly defines what should be understood as 'unfair competition acts' (taken from Practical Law Company)Further information on the new law can be found at Biblioteca del Congresso Nacional del Chile (in Spanish)

President Bachelet's announces proposal to amend the Competition Law in Chile, June 7, 2006 (In Spanish).

Tribunal de Defensa de la Libre Competencia News - Noticias

Fiscalia Nacional Economica News

Biblioteca del Congreso Nacional de Chile News

Fiscalia Nacional Economica
(Economic National Procecutor's Office)
Agustinas 853, Pisos 2 y 12
Santiago
CHILE

Tel: (562) 753 56 00
Fax: (562) 753 56 07/08
E-mail: MSalamanca@fne.cl

Tribunal de Defensa de la Libre Competencia (Tribunal for the Defense of Free Competition)
Agustinas 640, Piso 19
Santiago
CHILE

Tel: (562) 753 83 00
Fax: (562) 753 83 03

Ministry of Economy (Ministerio de Economia) Gobierno del Chile

National Congress Library (Biblioteca del Congresso Nacional del Chile)

Fiscalia Nacional Economica (Economic National Prosecutor's Office)

Tribunal de Defensa de la Libre Competencia

Free economic competition in Colombia enjoys constitutional status. Established for the first time in 1991 Colombia's Political Constitution as an specific economic right , free economic competition grants everyone the right to participate in the markets in equal conditions, and confers on consumers the right to opt for goods and services in conditions of free competition. The Colombian State has the constitutional obligation to prevent the obstruction or restriction of economic freedom, and to impede or control individuals or companies from abusing their dominant position in the national market.

At present, consumer welfare improvement is considered the main objective of Colombia's competition policy. Hence, with the enforcement of free competition provisions the State seeks the improvement of national production, the free participation of enterprises in the national market, and a greater variety of prices and qualities of goods and services for consumers.

Notwithstanding competition legislation in Colombia dates back to 1959, the fundamental application of competition policy was not truly initiated until the 1991 Constitution incorporated the right to free competition and the Government issued the Decree 2153 of 1992, by which pro-competition legislation was updated and the Superintendence of Industry and Commerce (SIC) was restructured.

The Superintendence of Industry and Commerce (SIC) is a high administrative authority in charge of the protection of economic public order and the preservation of free and loyal competition. SIC has also judicial authority to examine and apply unfair trade practices .

Accordingly, SIC aims its activities towards the investigation and sanction of anti-competitive and unfair trade conducts. SIC applies the "General Competition Regime" to all economic sectors without a special free competition rules. Special competition regimes and additional authorities have been created for sectors of the economy such as: Public Residential Services, Telecommunications, Television, Financial and Insurance Systems, Health, Maritime Transport and Aeronautical Sectors.

By Nelson Urrego-Maldonado, Parra, Rodriguez & Cavelier

Ley 1340 de 2009: Sancionada la reforma a la ley de competencia en Colombia (July 2009)

Constitution Articles 333 and 334 (In Spanish)

Laws (In Spanish)

Proyecto de Ley No. 108 / 05 Cámara “Por medio del cual se compilan las normas en materia de integraciones comerciales, practicas restrictivas de la competencia, promoción de la competencia y competencia desleal, y se dictan otras normas”.TEXTO APROBADO EN PRIMER DEBATE POR LA COMISION TERCERA CONSTITUCIONAL PERMANENTE DE LA HONORABLE CAMARA DE REPRESENTANTES EN SESION DEL DIA MIERCOLES 3 DE MAYO DE 2006. EL PROYECTO PASARA A LA PLENARIA DE LA CAMARA PARA SURTIR EL SEGUNDO DEBATE.

Proyect 108/05 - Pending Third Debate (In Spanish)

Ley 689 2001 "Por la cual se modifica parcialmente la ley 142 de 1994"

Ley 640 2001 "Por la cual se modifican normas relativas a la conciliación y se dictan otras disposiciones"

Ley 633 2000 "Por la cual se expiden normas en materia tributaria, se dictan disposiciones sobre el tratamiento a los fondos obligatorios para la vivienda de interés social y se introducen normas para fortalecer las finanzas de la Rama Judicial"

Ley 510 1999 "Por la cual se dictan disposiciones en relacion con el sistema financiero y asegurador, el mercado público de valores, las superintendencias bancaria y de valores y se conceden unas facultades"

Ley 472 1998 "Por la cual se desarrolla el artículo 88 de la Constitución Política de Colombia en relación con el ejercicio de las acciones populares y de grupo y se dictan otras disposiciones"

Ley 446 1998 Titulo IV, Capítulo 2, Sobre Protección al Consumidor. Artículo 145º

Ley 256 1996 "Por la cual se dictan normas sobre competencia desleal"

Ley 155 1959 "Por la cual se dictan algunas disposiciones sobre prácticas comerciales restrictivas"

Decrees (In Spanish)

Listado de Decretos

Decreto 2672 2003 por medio del cual se designa un Superintendente Delegado para la Promoción de la Competencia ad-hoc en la Superintendencia de Industria y Comercio.

Decreto 780 2003 por el cual se modifica parcialmente el Decreto 3212 del 27 de diciembre de 2002.

Decreto 594 2003 por el cual se aclara el inciso primero del artículo 1° del Decreto 3212 del 27 de diciembre de 2002, por el cual se modifica parcialmente el Decreto 1126 del 27 de mayo del 2002

Decreto 1126 2002 Por el cual se modifica parcialmente el Decreto 393 del 4 de marzo de 2002.

Decreto 393 2002 Por el cual se modifican parcialmente los decretos 856 de 1994 y 92 de 1998, por medio de los cuales se reglamenta el funcionamiento del registro de proponentes en las cámaras de comercio y se fijan las relativas a los registros de proponentes y mercantil.

Decreto 1747 2000 "Por el cual se reglamenta parcialmente la Ley 527 de 1999, en lo relacionado con las entidades de certificación, los certificados y las firmas digitales"

Decreto 2651 1991 Por el cual se expiden normas transitorias para descongestionar los despachos judiciales. Promoción de la Competencia

Decreto 3466 1982 "Por el cual se dictan normas relativas a la idoneidad, la calidad, las garantías, las marcas, las leyendas, las propagandas y la fijación pública de precios de bienes y servicios, la responsabilidad de sus productores, expendedores y proveedores, y se dictan otras disposiciones"

Decreto 1302 1964 "Por la cual se reglamenta la ley 155 de 1959, en armonía con los Decretos 1653 de 1960 y 3307 de 1963"

Colombian Special Competition Regimes:

1. Public Residential Services Sector

Law 142 of 1994 (Law of Public Residential Services) and its amending Law 286 of 1996. Include a special competition regime applicable to entities rendering public residential services of gas, electricity, water and sewer, and telecommunications. Competition authority is the Superintendence of Residential Services.

2. Telecommunications Sector

Decree Law 1900 of 1990, which regulated Law 72 of 1989 on telecommunications services. Includes special rules on competition and unfair trade practices in the telecommunications sector.

Decree 2122 of 1992, which created the Telecommunications Regulating Commission as the authority with competence to regulate competition in the telecommunications sector.

Competition authority in the basic telephony sector is the Superintendence of Residential Services, since basic telephony is a residential public service subject to Law 142 of 1994.

Competition authority in mobile telephony, truncking, added value, radio and other services is the Superintendence of Industry and Commerce.

3. Television Sector

Law 182 of 1995 (Television Broadcast Law). Contains anti-competition and unfair practices provisions concerning the use of the electromagnetic spectrum and the concentration of control in the television sector.

Competition authority is the National Television Commission.

4. Health Sector

Law 100 of 1993 and Decree 1663 of 1994, which contain special provisions for preventing and restraining abuses of dominant positions in health services. (in Spanish)

Competition authority is the Superintendence of Industry and Commerce.

5. Maritime Transport Sector

Decree 3111 of 1997 (Maritime Transport National Regime). Regulates competition and unfair trade practices in the maritime transport sector. (in Spanish)

Competition authority is the Superintendence of Ports.

6. Aeronautical Sector

Manual of Aeronautical Regulations. Contains special competition provisions applicable to aeronautical services.

Restrictive trade practices authority is the Special Administrative Department of Civil Aeronautics.

Unfair competition authority is the Superintendence of Industry and Commerce.

7. Financial and Insurance Sector

Decree Law 663 (Financial System's Organic Statute). Contains special provisions against anti-competitive and unfair trade practices in the financial and insurance sector. (in Spanish)

Competition authority is the Superintendence of Banks.

Competition Guidelines for Technology Transfer in Colombia. By Parra, Rodriguez & Cavalier

Concepto previo sobre concentraciones juridico economico

Denuncias por actos de competencia desleal

Denuncias por practicas comerciales restrictivas

Liquidacion de perjuicios en competencia desleal - facultades jurisdiccionales

Co-operation Agreements and Treaties - International Competition Framework

1. Colombia - United States of America.

Free Trade Agreement with Colombia (Draft FTA)

22 November 2006: The United States has signed a free-trade agreement (FTA) with Colombia. Both countries now will submit the agreement to their legislatures for approval.

The comprehensive agreement promises to strengthen economic ties between the United States and Colombia by eliminating tariffs and other barriers to goods and services and expanding trade between the two countries, according to U.S. Trade Representative Susan Schwab.

According to a USTR fact sheet, under the agreement, more than 80 percent of U.S. exports to Colombia -- including high-quality beef, cotton, wheat, soybeans and soy meal, key fruits and vegetables and some processed foods -- immediately would become duty-free, and duties for the remainder of exports would be phased out over 10 years. (Source: USINFO).

For complete article, click here

2. World Trade Organization

Colombia was a signatory member to the GATT since the mid-80s and at present is formally a member of the WTO. Colombia has implemented legislation on safeguards, countervailing and anti-dumping duties consistent with its WTO obligations.

3. Paris Convention for the Protection of Industrial Property

Colombia is formally member to the Convention since September 3, 1996. The Convention obligations include to provide to nationals of member countries efficient protection against unfair competition practices.

4.Andean Community

Decision 284 of 1991, issued by the Commission of the Cartagena Agreement containing rules and regulations for preventing or correcting distortions in competition caused by restrictions on exports

Decision 285 of 1991, issued by the Commission of the Cartagena Agreement, on anti-competitive practices in the Andean Community (CAN) countries.

Decision 291 of 1991 (Andean Community's Regime for the Common Treatment of Foreign Capital and Trademarks, Patents, Licensing Agreements and Royalties), issued by the Commission of the Cartagena Agreement. Includes competition rules for the registration of technology transfer and intellectual property licensing.

Decision 486 of 2000, (Andean Community's Industrial Property Regime), issued by the Commission of the Cartagena Agreement. Title XVI contains provisions concerning intellectual property-related unfair competition practices.

For the Andean Community Competition Law Website, please click here

5. G-3 Treaty - Colombia, México and Venezuela.

Chapter IX on Unfair Practices in International Trade (In Spanish) contains provisions aimed to promote conditions of fair competition in trade relations between G-3 countries.

6. Colombia- CARICOM (Caribbean Common Market: Antigua, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis-Anguilla, St. Lucia, St. Vincent, and Trinidad and Tobago.)

Partial Scope Agreement No. 31, Article 17, Unfair Trade Practices (In Spanish)

7. Colombia- CACM (Central American Common Market: Costa Rica, El Salvador, Nicaragua, Honduras and Guatemala).

Partial Scope Agreements with each CACM member country. Each agreement includes clauses regarding safeguards.

8. Colombia - Argentina.

Economic Complementation Agreement N°48. Chapter VI contains clauses concerning anti-dumping and countervailing measures.

9. Colombia - Brazil.

Partial Scope Agreement of Economic Complementation N° 39. Chapter VI contains anti-dumping and countervailing clauses.

10. Colombia-Chile.

Economic Complementation Agreement N° 24. Chapter VI on Unfair Practices in Foreign Trade. (In Spanish)

11 Colombia-Cuba.

Partial Scope Agreement of Economic Complementation N° 49. Chapter V on Unfair Practices in Foreign Trade. (In Spanish)

12. Colombia-Panama.

Partial Scope Agreement 29. Chapter V on Unfair Practices in Foreign Trade. (In Spanish)

13. Colombia-Paraguay.

Partial Scope Agreement N° 18. Chapter V contains clauses on safeguards. (In Spanish)

14. Colombia-MERCOSUR

Economic Complementation Agreement, Chapter VI, Competition (In Spanish)

Two Recent Antitrust Decisions: The Beer Manufacturers Case and the Airlines Case by Ernesto Cavelier and José Elías Del Hierro of Parra, Rodríguez & Cavelier.

FTAA

Report on Development and enforcement of Competition Policy and Laws- FTAA(Free Trade Area of Americas)- January/2003

Inventory of Domestic Laws and Regulations relating to Competition Policy in the Western Hemisphere- FTAA- Negotiating Group on Competition Policy- 2002

Inventory of the Competition Policy Agreements, Treaties and other Arrangements Existing in the Western Hemisphere


Superintendence of Industry and Commerce

Speeches

Papers on Competition Law, by José Elías del Hierro of Parra, Rodríguez & Cavelier:

(i) Competencia desleal en Colombia (In Spanish)
(ii) Aerocivil o Superintendencia de Industria y Comercio, he ahí el dilema (In Spanish)
(iii) Del Convenio de París de 1883 a la Decisión 486 de 2000 (In Spanish)
(iv) Acts Against Free Competition in Colombia (In English and in Spanish)

Superintendencia de Industria y Comercio:

(i) Experiencia Colombiana en Competencia Desleal, November 2004 (In Spanish)
(ii) Bulletins 2009 (In Spanish)

Presidente Uribe sancionó Ley de Protección de la Competencia (July 2009)

Superintendencia de Industria y Comercio - SIC. News (In Spanish)

July 2005 SIC - Se aclara el procedimiento aplicable en procesos de competencia desleal

Superintendencia de Industria y Comercio
Carrera 1/3 27-00 2 Piso mezzanine
Bogotá, Colombia
Tel: +57 1 3820840 / 3822672
Fax: +57 1 3505220 / 3822698
E-mail: info@sic.gov.co

Superintendencia de Industria y Comercio

Ecuador is in process of adopting a competition law. A first draft was approved by the National Congress but then rejected by the President. A second draft was completed in 2004 and it is now under revision of the Presidency of the Republic of Ecuador.

On 16 March 2004 the Red Interinstitucional de Competencia was created. The main purpose of this institution is to promote the new draft and a competition policy in Ecuador.

However, as a member of the Andean Community, the regional laws enacted by this group apply automatically in this jurisdiction.

Ecuador has a new competition regime, utilizing the Andean Community's competition policy Decision 608

Constitucion Politica de la Republica del Ecuador (Constitution of Ecuador),

"Art. 244: Dentro del sistema de economía social de mercado al Estado le corresponderá:

3. Promover el desarrollo de actividades y mercados competitivos. Impulsar la libre competencia y sancionar, conforme a la ley, las prácticas monopólicas y otras que la impidan y distorsionen."

Proyecto de Ley de Proteccion de la Libertades Economicas (First draft)

Andean Community

1. Decision 284 of 1991, issued by the Commission of the Cartagena Agreement containing rules and regulations for preventing or correcting distortions in competition caused by restrictions on exports

2. Decision 285 of 1991, issued by the Commission of the Cartagena Agreement, on anti-competitive practices in the Andean Community (CAN) countries.

3. Decision 291 of 1991 (Andean Community's Regime for the Common Treatment of Foreign Capital and Trademarks, Patents, Licensing Agreements and Royalties), issued by the Commission of the Cartagena Agreement. Includes competition rules for the registration of technology transfer and intellectual property licensing.

4. Decision 486 of 2000, (Andean Community's Industrial Property Regime), issued by the Commission of the Cartagena Agreement. Title XVI contains provisions concerning intellectual property-related unfair competition practices.

For the Andean Community Competition Law Website, please click here

La politica de competencia en Ecuador, un proyecto necesario para una economia en vias de desarrollo, by Fausto Alvarado

Aspectos de politica economica a considerarse en una Ley de Competancia, by Patricio Diaz

La Competencia: un manual practico para los consumidores, by Secretaria Ad Hoc / REICO

Hace falta una ley que promocione y proteja la competencia economica, by Santiago Andrade

Essential Elements of an Effective Institution, by Russell W. Damtoft

Red Interinstitutcional de Competencia (REICO)

Luis Cordero, 1154, entre Reina Victoria y Juan Leon Mera
Edif. Gabriela Mistral
Piso 7, Dept. 704
Tel: 593-2-2500147 / 593-2-2528430
Fax: 593-2-2507507
Email: tribuna@hoy.net

Competition and Fair Trading Bill

Ministry of Tourism, Industry and Commerce
229 South Road, Lacytown
Georgetown, Guyana
Tel: (592) 226 2505
Fax: (592) 225 9898

French Guiana enforces the French Legal system as an overseas department of France.

The new economic regulations act. The provisions regarding competition law contained in the New Economic Regulations Act of 15 May 2001 have called for an amendment to Book IV of the Code of Commercial Law.

Code of Commercial Law (In English)

This version of the code of commercial law (code de commerce) does not take into account changes introduced by :

Ordinance n° 2004-274 of 25th March 2004
Ordinance n° 2004-1173 of 4th November 2004
Law n° 2004-1343 of 9th December 2004
Law n° 2005-882 of 2nd August 2005

Conseil de la Concurrence
11, rue de l'Echelle
75 001 PARIS, France
Tel: +33 1 55 04 00 00
Fax: +33 1 55 04 00 33

Direction Generale de la Concurrence de la Consommation et de la Repression des Fraudes
Director General Mr. Benoit Parlos
59, blv, Vincent Auriol 75703 Paris
dirgen@dgccrf.financs.gouv.fr

French competition law is enforced by two administrative bodies and by courts.

The Ministry of Economy, Finance and Industry (the Ministry) and the Directorate General for Competition, Consumer Policy and Repression of Fraud (Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes, the DGCCRF)

Conseil de la Concurrence. The Competition Council

Criminal, civil, commercial, and administrative courts have jurisdiction to apply both EC and French competition rules relating to anti-competitive practices. Restrictive trade practices are enforced by courts only, as the Council does not have jurisdiction to rule on such practices.

No competition law yet in force.

Proyecto de Ley de Defensa de la Competencia. (Draft for a Law on the Defence of Competition, which is being dicussed by the Senate) (In Spanish)

Agreement of Asuncion- MERCOSUR The Common Market of the Southern Cone (Mercosur) was created by the Agreement of Asuncion on March 16, 1991. Mercosur´s member countries are Argentina, Brazil, Paraguay and Uruguay. The main provisions related to competition policy are in the Decision 18/96 of December 17, 1996 containing the Protocol of the Defense of Competition in Mercosur. This Protocol is pending congressional approval by each member country to be enforceable as national law.

Inventory of Domestic Laws and Regulations relating to
Competition Policy in the Western Hemisphere

Inventory of the Competition Policy Agreements, Treaties and Other Arrangements existing in the Western Hemisphere

ALCA – Paraguay: Perfil de Proyecto Especifico dentro del marco del programa de cooperación hemisférica – relaciocionado con política de competencia

For more information, please refer to the SICE Website

Bruno H. de Belmont
Coordinador Nacional
Defensa de la Competencia
MERCOSUR-ALCA

The Commission for the Protection of Competition (forthcoming)

The 1990s saw the Peruvian Government take significant measures to strengthen competition law and associated disciplines in a wide range of sectors. In 1992 a competition law was adopted that prohibits the abuse of dominant position and cartel-like business practices. However, some sectoral exceptions were allowed, and no general merger review provisions were adopted.

The implementation of this law was reinforced by the creation of the National Institute for the Defence of Competition and Protection of Intellectual Property (INDECOPI). INDECOPI, however, needs to be strengthened through the revision of certain aspects of its regulatory framework, as well as enhancing its activities and role in the field of consumer protection. In particular, INDECOPI has to further develop its collaboration with sectoral regulatory bodies by promoting more awareness on the benefits of introducing more competition in regulated sectors and supporting them in their efforts to do so.

In December 2005, INDECOPI published its fourth draft of a legislative proposal to seek the enactment of a new competition law. In May 2006, the Consumer Protection Commission of the Peruvian Congress green lighted the legislative proposal and it is set to be debated in the Peruvian Congress.

In order to come into force, the draft legislation must first be debated and approved by the Peruvian Congress. If approved, the Executive has the prerogative to enact or veto the draft legislation. In the latter case, the Congress may modify the bill, discard it or enact it.
A time frame for the discussion and voting of the proposed legislation has not yet been announced.

Several important changes have been proposed, among which are:

• The inclusion of several new anti-competitive practices auch as predatory pricing, retail price maintenance and abusive pricing.
• A rule of reason criteria for evaluating all anti-competitive conduct, including price fixing arrangement.
• The ability for INDECOPI to impose structural remedies as it currently can only impose pecuniary fines.
• The expansion of notification and prior control requirements to concentrations occuring in all sectors of economic activity and not just the electricity sector.

(Source: Practical Law Company)

Overview of Commission on Competition

Legal Acts

Decreto Legislativo No 701 - Disponen la eliminación de las prácticas monopólicas, controlistas y restrictivas de la libre competencia (In Spanish). The purpose of Legislative Decree 701 is to eliminate monopolistic, controlling, and restrictive practices vis-à-vis free competition in the production and marketing of goods and the provision of services, allowing free private enterprise to develop so as to maximize the benefits for users and consumers.

Legislative Decree N°701 Elimination of Monopolistic, Controlling and Restrictive Practices Affecting Free Competition is Ordered. Against Monopolistic Practices, Controls, and Restraints on Free Competition. "El Peruano" Federal Register, November 7, 1991. (In English)

Ley No 26876 Ley Antimonopolio y Antioligopolio del Sector Eléctrico (In Spanish)

Law N° 26876 Antitrust and Antioligopoly Law for the Electricity Sector. Power Sector Antitrust Law. Official gazette El Peruano, November 19, 1997. (In English)

Decreto Supremo No 017-98-ITINCI Reglamento de la ley que establece el control de concentraciones empresariales en el sector eléctrico: procedimiento de notificación (In Spanish)

Supreme Decree N°017-98-ITINCI Regulation Made Under the Law Prescribing Merger Operations in the Electric Sector: Notification Process.Official gazette El Peruano, October 16, 1998 (In English)

Decreto Supremo N° 087-2002-EF Establecen disposiciones reglamentarias de la Ley Nº 26876, Ley Antimonopolio y Antioligopolio del Sector Eléctrico, respecto a operaciones de concentración en el sector eléctrico

Resolutions (In Spanish)

Resolución Nº 003-2006- INDECOPI/CLC

Resolución Nº 020-2002-INDECOPI/CLC: Solicitud de autorización de concentración presentada por la empresa Tractebel S.A. para la adquisición de las empresas EGASA y EGESUR.

Resolución N° 016-2002-INDECOPI/CLC: Solicitud de autorización de concentración presentada por la empresa Interconexión Eléctrica S.A. para la la concesión de las empresas de transmisión eléctrica ETECEN - ETESUR. Anexo 1 y Anexo 2.

Resolución N° 031-01-INDECOPI/CLC: Solicitud de autorización de concentración presentada por la empresa PSEG Global Inc. en adelante, PSEG para la adquisición de la empresa de generación de electricidad Empresa de Electricidad de los Andes S.A.

Resolución N° 030-01-INDECOPI/CLC: Solicitud de autorización de concentración presentada por la empresa Tractebel S.A. en adelante, Tractebel - para la adquisición de la empresa de generación de electricidad Empresa de Electricidad de los Andes S.A.

Resolución N° 012-99-INDECOPI/CLC: Operación de concentración generadas por la adquisición de acciones de Enersis S.A. por parte de Endesa de España y por la adquisición de acciones de Endesa de Chile por parte de Enersis S.A.

Resolución N° 002-98-INDECOPI/CLC: Solicitud de autorización previa de la operación de concentración empresarial constituida por la conformación del Consorcio Transmantaro S.A., presentada por la Empresa de Transmisión Eléctrica Centro Norte S.A. - ETECEN.

Resolución N° 015-98-INDECOPI/CLC: Solicitud de autorización previa de la adquisición de acciones de Generandes Perú S.A., presentada por la Compañía Eléctrica Cono Sur S.A.

Resolución Nº 206-97-TDC

Resolución Nº 229-97-TDC

Resolución Nº 276-97-TDC


Constitución Política del Perú - 1993

Article N° 61: (in Spanish)

"El Estado facilita y vigila la libre competencia. Combate toda práctica que la limite y el abuso de posiciones dominantes o monopólicas. Ninguna Ley ni concertación puede autorizar ni establecer monopolios.
La presa, la radio, la televisión y los demás medios de comunicación social y en general, las empresas, los bienes y servicios relacionados con la libertad de expresión y de comunicación no pueden ser objeto de exclusividad, monopolio ni acaparamiento, directa ni indirectamente, por parte del Estado ni de particulares".

Decreto Supremo N° 013- 93-TCC. Texto Unico Ordenado de la Ley de Telecomunicaciones Artículo 77°

Decreto Supremo N° 017-1998-ITINCI

Resolución de Consejo Directivo N° 003-2000-CD/OSIPTEL. Aprueban Lineamientos Generales para la Aplicación de las Normas de Libre Competencia en el Ambito de las Telecomunicaciones. (Publicado 08.02.2000)

Ley N° 27336- Ley de Desarrollo de las Funciones y Facultades del Organismo Supervisor de Inversión Privada en Telecomunicaciones- OSIPTEL (publicada 05.08.2000)Artículo 26°: Régimen de infracciones relacionadas con competencia y sanciones personales. (In spanish)

26.2 OSOPTEL podrá sancionar a las personas naturales o jurídicas que no tengan la condición de operadoras de servicios públicos de telecomunicaciones, por incumplimiento de las normas de libre y leal competencia, en los casos en que se refiere el último párrafo del artículo 36° de la presente ley, así como por incumplimiento de las resoluciones emitidas en el procedimiento correspondiente.
26.3 Asimismo, serán aplicables los artículos 20° y 23 del Decreto Legislativo 701, modificados por el Decreto Legislativo 807, en lo referido a la participación y sanciones a los representantes legales o las personas que integran los órganos directivos de las empresas o entidades sancionadas. Estas disposiciones no solo serán aplicables cuando se trate de infracciones relacionadas con la libre competencia, sino también con la interconexión y con negativas directas o indirectas a acceder a información.

Texto Único de Procedimientos Administrativos de la Comisión de Libre
Competencia (In Spanish)

Guidelines Economic Studies Division Reports

Useful reports and information can be obtained from the following link of Indecopi's website

No information available

Andean Community

1. Decision 284 of 1991, issued by the Commission of the Cartagena Agreement containing rules and regulations for preventing or correcting distortions in competition caused by restrictions on exports

2. Decision 285 of 1991, issued by the Commission of the Cartagena Agreement, on anti-competitive practices in the Andean Community (CAN) countries.

3. Decision 291 of 1991 (Andean Community's Regime for the Common Treatment of Foreign Capital and Trademarks, Patents, Licensing Agreements and Royalties), issued by the Commission of the Cartagena Agreement. Includes competition rules for the registration of technology transfer and intellectual property licensing.

4. Decision 486 of 2000, (Andean Community's Industrial Property Regime), issued by the Commission of the Cartagena Agreement. Title XVI contains provisions concerning intellectual property-related unfair competition practices.

For the Andean Community Competition Law Website, please click here

Tribunal del Indecopi

Sala de Defensa de la Competencia

Defensa de la competencia, 27 de marzo de 2006: El Comercio Peru.com

COMPAL Global Annual Report 2005, COMPAL Programme: Projects for Bolivia, Costa Rica, El Salvador, Nicaragua and Peru (01/05/06)

Annual Reports (In Spanish)

Inventory of Domestic Laws and Regulations relating to Competition Policy in the Western Hemisphere- FTAA- Negotiating Group on Competition Policy- 2002

Annual Report 1999

Annual Report 1998

Annual Report 1997

Annual Report 1996

Annual Report 1995

Annual Report 1994

Annual Report 1993

Publications (In Spanish)

Lineamientos sobre Información Confidencial Comisión de Libre Competencia
(Comentario: Defensoría del Pueblo)

Cálculo de la participación en el desarrollo de actividades eléctricas a efectos de la notificación de conformidad con la Ley N° 26876

Informes De Competencia

Consultas Copri

Consultas Externas

Memorias De La Comisión

Informes De Competencia Para El Fondo Nacional De Financiamiento De La Actividad Del Eestado - FONAFE

Informes Sobre Operaciones De Concentración Empresarial En El Sector Eléctrico

Informes de Competencia

Informe de Supervisión Especial N° 01-2000/DTIT/PUERTOS elaborado por el Organismo Supervisor de la Inversión en Infraestructura de Transporte de Uso Público (OSITRAN) con relación a supuestas prácticas de abuso de posición dominante por parte de la empresa TISUR, actual concesionario del Terminal Portuario de Matarani
(Abr 2002)

Informe sobre las condiciones de competencia en la prestación del servicio de transporte turístico en la ruta Aguas Calientes - Puente Ruinas - Ciudadela Inca de Machupicchu
(Dic 2001)

Impacto del Impuesto Selectivo al Consumo sobre la Competencia en los Mercados de Cervezas y Rones
(Dic 2000) (Comentario: Backus)

Impacto del Sistema Impositivo sobre la Competencia en el Mercado de Cigarrillos
(Dic 2000)
(Comentario: Tabacalera Nacional S.A.)

Efectos de la Ley N° 27239 sobre la Competencia en el Sector Eléctrico
(Dic 2000)

Efectos de la Ley de la Amazonía en la Comercialización Mayorista de Combustibles en la Selva
(Set 2000)
(Comentario: Maple)

Estructura y Funcionamiento del COES del Sector Eléctrico
(Set 2000)

Informe sobre las condiciones de competencia en la ruta ferroviaría Sur-Oriente
(Ago 2000)

Competencia en el Mercado de Clientes Finales de Energía Eléctrica no sujetos a Regulación de Precios
(Nov 1999)

Competencia en el Mercado de Clientes Finales de Energía Eléctrica no sujetos a Regulación de Precios
(Abr 1999)

Situación y Perspectivas de la Competencia en el Mercado de Hidrocarburos.

Consultas COPRI

Consulta de la Comisión de la Promoción de la Inversión Privada (COPRI) sobre la posible posición monopólica que ostentaría la empresa que desarrolle el servicio de transporte de concentrados de mineral desde los almacenes hacia el muelle del Puerto del Callao 11 de diciembre de 2000

Consulta de la Comisión de Promoción de la Inversión Privada (COPRI) respecto de si el proyecto para la construcción y operación de un terminal de almacenamiento de productos químicos líquidos podría tener características monopólicas22 de noviembre de 2000

Informes - FONAFE

Evaluación de las condiciones para el desarrollo de actividad empresarial del Estado: Corporación Financiera de Desarrollo S.A. - COFIDE.

Conclusiones

Informe N°024-2002/GEE

Anexo

Evaluación de las condiciones para el desarrollo de actividad empresarial del Estado: Perupetro S.A.

Conclusiones

Informe N°023-2002/GEE

Evaluación de la actividad empresarial del estado en el mercado de Servicios Postales : Caso Serpost

Conclusiones

Informe N°037-2001/GEE

Evaluación de la actividad empresarial del estado en el sector de Transporte Aéreo: Caso TANS

Conclusiones

Informe N°038-2001/GEE

Evaluación de las condiciones para el desarrollo de la actividad empresarial del estado en la publicación de anuncios y normas legales, así como en la actividad informativa en medios de comunicación: Caso Editora Perú

Conclusiones

Informe N°039-2001/GEE

Evaluación de las condiciones para el desarrollo de la actividad empresarial del estado en la construcción y reparación naval, así como en la industria metalmecánica: Caso Sima Perú S.A.

Conclusiones

Informe N°040-2001/GEE

Informes - Sector Eléctrico
Solicitud de autorización de Tractebel S.A.

Informe N° 010-2001/CLC/INDECOPI

Solicitud de autorización de PSEG Global Inc.

Informe N°011-2001/CLC

Peru: Peruvian Unfair Competition Law, by Teresa Tovar

On June 26, 2008 the Peruvian government enacted Legislative Decree 1044 , Unfair Competition Law (hereinafter, the UCL). The UCL unifies in one single normative body the regulation on unfair competition and commercial advertising: (i) Law Decree 26122 - Unfair Competition Law and; (ii) Legislative Decree 691- Regulations regarding Commercial Advertising. This change has been positive because in the past these two Laws have been in conflict due to the almost identical nature of the acts involved in unfair competition and unfair advertising practices (for example, acts of deceit, denigration, among others).

What's New (In Spanish)

Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual
Calle de la Prosa 138
San Borja, Peru
Tel: +51 1 224-7800 - +51 1 224-7777
Fax: +51 1 - 224-0348

Sala de Defensa de la Competencia del Tribunal de Ind.

Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual /Indecopi

Sala de Defensa de la Competencia del Tribunal de Ind.

All South American countries

Unfair Competition:
Articles 390 and 400 Penal Code

No Competition Law yet in force

Supervisory Ministry
Ministry of Justice and Police ha Ministerial
Gravenstraat 1
PO BOX 291
Paramaribo
597-47.30.33 / 597-47.38-41 / 597-47.58.05
Fax 597- 41.21.09

The Court of Justice
Onafhankelijkheidplein 6
Paramaribo
597- 47.35.30

Civil Court
Paramaribo
597- 43.03.00

No information available

To prohibit agreement and coordination between economic agents, joint decisions by business associations, and the abuse of a dominant position by one or more economic agents, serving to impede, restrict or distort competition and free access to the markets of production, processing, distribution and trade of goods and services (Article 14 of Law No. 17.243)

There is no specialised enforcement institution, therefore the General Bureau of Commerce, within the Ministry of Economy and Finance enforces competition law. The Bureau may investigate claims, open arbitration centres, and impose penalties.

Ley Nº 18.159 Promocion y Defensa de la Competencia (In Spanish)

Ley No 17.243 sobre Servicios Públicos y Privados, Seguridad Pública y Condiciones en las que se desarrollan las actividades productivas, Capítulo IV. Diario Oficial de 6 de julio de 2000 (In Spanish)

Ley No. 17.296, articulos 157 y 158 (In Spanish)

Decreto 86/2001 sobre Defensa de la Competencia de 15 de marzo de 2001 (In Spanish)

Ley 17598 - Unidad Reguladora Servicios Energia y Agua. Creacion.

Manual de analisis de conductas anticompetitivas

Uruguay has no cross border agreements concerning competition. The "Protocolo de Fortateza del Mercosur" has not yet been incorporated into Uruguyan legislation.

Articles (In Spanish)

Analisis de la Legislacion de Defensa de la Competencia

New antitrust law in Uruguay, Juan Manuel Mercant:

At the end of July 2007, the Uruguayan government enacted the Ley de Libertad de Comercio y Preservación de la Libre Competencia or Trade Freedom and Free Competition Preservation Act, which came into effect in early August and marked the beginning of a new era for antitrust in Uruguay.
As it is still in its infancy, the antitrust act may yet be regulated and refined through decrees and regulations issued by the government, which has 120 days from 20 July to produce the regulations. At the time of writing, no regulations have been released.
The antitrust act repeals almost all previous regulations related to anti-competition matters and will cover all persons (legal entities and individuals, public or private, national or foreign) except for the limitations established by law owing to reasons of general interest.

Pre Merger Control Approval Under The Uruguayan Antitrust Act, Juan Manuel Mercant:

Representatives of the Government of the United States of America and of the Government of Uruguay met in Washington, D.C. on April 3-4, 2006, to prioritize a Work Program for 2006 of the Joint Commission on Trade and Investment ("Commission"). Assistant United States Trade Representative Everett Eissenstat headed the U.S. delegation, while Minister of Industry, Energy and Mining, Jorge Lepra, headed the Uruguayan delegation.

Direccion General de Comercio. Ministerio de Economia.
Calle Colonia 1206 piso 2, Montevideo
tel. + (598) 2 900.71.95 y 901.41.15 y 902 0319
fax. + (598) 2 902.17.26
Email: hargain@adinet.com.uy

FTAA Negotiating Themes- Uruguay

Comisión de Promoción y Defensa de la Competencia (-forthcoming-)

In August 2006, a draft of the new anti-monopoly law was being discussed in the Venezuelan National Assembly and it was expected that the new law would be passed within a couple of weeks upon its second discussion.

The current competition authority, Procompetencia, would be replaced by the new national anti-monopoly Institute (Instituto Nacional Antimonopolio y Antioligopolio) (INANTI).

(Source: Practical Law Company)

Venezuela's Free Competition System

The free competition regime in Venezuela started in 1992 when the government settled a group of new policies in order to prepare the country to face globalisation process, including to the Law to Promote and Protect the Exercise of Free Competition. The objective of the law is to promote and protect the free competition and the efficiency that benefits the producers and the consumers; and to prohibit monopolistic and oligopolistic practices and other means that could impede, restrict, falsify, or limit the enjoyment economic freedom. In this sense, the normal subjects of law are natural or juristic persons, public or private, engaged in profitable or non-profitable economic activities within the country, or groups of agents engaged in such activities.

The Venezuelan System of Free Competition prohibits in general all the conducts, practices, agreements, etc. that impede, restrict, falsify or limit the free competion. In particular our legislation prohibits boycotts, cartels and other horizontal agreements, bid-rigging, vertical agreements that contains vertical retraints and the abuse of dominant position. The law has also a prohibition for all the mergers - horizontal, vertical or other-that are restrictive of the market or could generate or reinforce a dominant position in a relevant market. Finally, the law prohibits unfair competition in terms of misleading or false advertising, bribery in commerce, violation of industrial secrects, etc. and other commercial policies, which tend to eliminate competitors.

Cartels and bid-rigging, boycotts, abuse of dominant position and unfair competition are per se violations of the law. The other anti competitive practices should be analysed by the Office by the rule of reason theory in order to establish if there is or not a violations of the law or if the practice should be authorised by the Office because the efficiency that it provide. In order to develop the case, the Office use the methodology of the relevant market.

In the case of mergers, there are two ways to review them. One is to authorised them (ex ante) and that is voluntary for the parties, that is, the pre merger notification procedure is not obligatory. The other is by an administrative procedure of prosecution of an ati competitive practice, which is ex post and it is to determine if the merger has violate the law, because is anti competitive or restrictive of the competition.

This document was submitted by Venezuela as a contribution to the OECD Global Forum on Competition (17-18 October 2001). (full document)

Informe sobre la Politica de Competencia en Venezuela - Report on Competition Policy in Venezuela (in Spanish)

Legislation (In Spanish)

Ley para Promover y Proteger el Ejercicio de la Libre Competencia
Gaceta Oficial Nº 34.880 del 13 de Enero de 1992

Law to Promote and Protect the Exercise of Free Competition
Official Gazette Nº 34.880 as of January 13, 1992

Constitución de la República Bolivariana de Venezuela, article 96
Gaceta Oficial Extraordinaria Nº 5.453 del 24 de Marzo de 2000

Lineamientos de Evaluación de los Contratos de Franquicia
Gaceta Oficial Extraordinaria Nº 5.431 del 7 de Enero de 2000

Lineamientos para la Evaluación de las Operaciones de Concentración Económica
Gaceta Oficial Nº 36.819 del 1º de Noviembre de 1999

Reglamento Interno de la Superintendencia para la Promoción y Protección de la Libre Competencia
Gaceta Oficial Nº 36.329 del 7 de Noviembre de 1997

Instructivo Nº 3 - Instructivo sobre Operaciones de Concentración Económica
Gaceta Oficial Nº 36.209 del 20 de Mayo de 1997

Reglamento Nº 2 de la Ley para Promover y Proteger el Ejercicio de la Libre Competencia
Gaceta Oficial Nº 35.963 del 21 de Mayo de 1996

Resolución Nº SPPLC/14-96 del 24 de mayo de 1996
Gaceta Oficial Nº 36.000 del 15 de julio de 1996

Resolución Nº SPPLC/036-95 del 28 de agosto de 1996
Gaceta Oficial Nº 36.000 del 21 de septiembre de 1995

Instructivo Nº 1 - Formulario para la Solicitud de Autorización de Prácticas Restrictivas de la Competencia Gaceta Oficial Nº 32.257 del 21 de Julio de 1993

Resolución Nº 0004-93 del 18 de junio de 1993
Gaceta Oficial Nº 4.601 Extraordinario del 1º de julio de 1993 (forthcoming)

Resolución Nº 0005-93 del 18 de junio de 1993
Gaceta Oficial Nº 4.601 Extraordinario del 1º de julio de 1993 (forthcoming)

Reglamento Nº 1 de la Ley para Promover y Proteger el Ejercicio de la Libre Competencia
Gaceta Oficial Nº 35.202 del 3 de Mayo de 1993

Constitución de la República de Venezuela. Enmiendas Nº 1 y 2. Disposiciones Transitorias
Gaceta Oficial Nº 3.357 Extraordinario del 2 de Marzo de 1984

* CAN and Venezuela agree to keep trade advantages
fully and reciprocally effective

Lima, Peru, August 9, 2005

The Andean Community and Venezuela today signed a Memorandum of Understanding whereby the trade advantages received and granted to the parties pursuant to the Andean Liberalization Program will remain fully effective despite Venezuela’s denunciation of the Cartagena Agreement this past April 22, 2006.

For the complete articgle, go to the Andean Community website

Andean Community

1. Decision 284 of 1991, issued by the Commission of the Cartagena Agreement containing rules and regulations for preventing or correcting distortions in competition caused by restrictions on exports

2. Decision 285 of 1991, issued by the Commission of the Cartagena Agreement, on anti-competitive practices in the Andean Community (CAN) countries.

3. Decision 291 of 1991 (Andean Community's Regime for the Common Treatment of Foreign Capital and Trademarks, Patents, Licensing Agreements and Royalties), issued by the Commission of the Cartagena Agreement. Includes competition rules for the registration of technology transfer and intellectual property licensing.

4. Decision 486 of 2000, (Andean Community's Industrial Property Regime), issued by the Commission of the Cartagena Agreement. Title XVI contains provisions concerning intellectual property-related unfair competition practices.

5.Decision 641 of 2006
Approval of the Memorandum of Understanding signed by the Member Countries of the Andean Community and the Bolivarian Republic of Venezuela

For the Andean Community Competition Law Website, please click here

Resolutions (In Spanish)

Press Releases (In Spanish)

Annual Reports (In Spanish)

Procompetencia. Annual Report 2003

Procompetencia. Annual Report 2002

Procompetencia. Annual Report 2001

Inventory of Domestic Laws and Regulations relating to Competition Policy in the Western Hemisphere- FTAA- Negotiating Group on Competition Policy- 2002

Report on Development and enforcement of Competition Policy and Laws- FTAA(Free Trade Area of Americas)- January/2003

Publications (In Spanish)

The Antitrust Review of the Americas 2009, Jose Gregorio Torrealba (Venezuela)

Folleto Informativo sobre el Régimen de Libre Competencia en Venezuela

Publications (General)

Informes de Políticas Públicas

Informes Especiales de Privatización

Colección Temas de Competencia

Estudios Generales

Prácticas Horizontales

Prácticas Verticales

Competencia Desleal

Fusiones y Adquisiciones

Temas Conexos

Estudios Sectoriales

Otros Estudios sobre Competencia

Otras Publicaciones de Interés

Bulletins (En Breve)

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de marzo de 2004. Año 5. Nº 50

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de febrero de 2004. Año 5. Nº 49

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de diciembre de 2003. Año 4. Nº 47

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de noviembre de 2003. Año 4. Nº 46

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de octubre de 2003. Año 4. Nº 45

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de septiembre de 2003. Año 4. Nº 44

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de agosto de 2003. Año 4. Nº 43

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de julio de 2003. Año 4. Nº 42

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de junio de 2003. Año 4. Nº 41

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de mayo de 2003. Año 4. Nº 40

Boletín Informativo de la Superintendencia para la Promoción y Protección
de la Libre Competencia, Pro-Competencia. 15 de abril de 2003. Año 4. Nº 39


Articles

Estructura de Mercado y Dinámica de la Competencia en la Producción y Comercialización de Resinas Plásticas, elaborado por la Dirección de Investigación y Fomento

Politica de Competencia y Legislación Antimonopolio en Japón: Estudio Comparativo elaborado por María Antonieta Magaldi

What's New (Please refer to Procompetencia Website)

MERCOSUR admits Venezuela from Latinlawyer.com
Published 13 July 2006

Venezuela has joined South American trading block Mercosur. The country formally became a member at a summit in Caracas on July 4. Mercosur, established in 1991, has until now comprised Brazil, Argentina, Uruguay and Paraguay. The addition of Venezuela, the world's fifth largest oil exporter, means that Mercosur's regional gross product totals over US$1 trillion, or 75 per cent of South America's economic activity.

In April, Venezuela withdrew from the Andean Community partly in protest against bilateral trade agreements signed by members Peru and Colombia with the US.

Members of Mercosur are barred from negotiating individual bilateral agreements, although the bloc as a whole has had discussions about a free trade agreement of the Americas.

In a recently published interview, President Lula da Silva of Brazil said Venezuela's membership was important. He said it would cure the misconception that Mercosur only encompasses "the Southern Cone" and show that it in fact it links Patagonia and the Caribbean. He said that the countries already share close economic ties, as Brazil's exports to Venezuela are worth US$2.5 billion.

Superintendencia Pro-Competencia
Torre Este, Piso 19, Parque Central,
Caracas, Venezuela
Teléfonos/Fax: +58 212 509 0955 - 0954 0952

Procompetencia, Superintendencia para la Promoción y Protección de la Libre Competencia