Competition Law at Dominican Republic
Here’s a detailed overview of Competition Law in the Dominican Republic:
🇩🇴 Competition Law in the Dominican Republic
1. Legal Framework
The main legislation is the Law No. 42-08 on the Defense of Competition (Ley No. 42-08 de Defensa de la Competencia), enacted in 2008.
The law aims to promote free and fair competition and prevent anti-competitive practices in the Dominican market.
It aligns with international best practices and is designed to protect consumers and businesses from monopolistic and unfair practices.
2. Regulatory Authority
The Superintendency of Industry and Commerce (SIC - Superintendencia de Industria y Comercio) is the primary enforcement body.
The SIC investigates, monitors, and sanctions violations of competition law.
It also reviews merger transactions and can impose fines and corrective measures.
3. Key Provisions
a. Prohibition of Anti-Competitive Agreements
Agreements or concerted practices that restrict, distort, or prevent competition are prohibited.
Includes price-fixing, market allocation, bid rigging, output restrictions.
b. Abuse of Dominant Position
Firms with significant market power cannot abuse it.
Prohibited behaviors include unfair pricing, refusal to supply, discriminatory practices, and tying.
c. Merger Control
Certain mergers and acquisitions require prior notification and approval from SIC.
Thresholds are based on turnover and market share.
SIC assesses if the merger could substantially reduce competition.
d. Unfair Competition and Consumer Protection
The law also protects against unfair commercial practices.
SIC enforces measures against deceptive advertising and unfair business conduct.
4. Enforcement and Penalties
SIC has investigatory powers including dawn raids and information requests.
Violations can lead to:
Administrative fines up to 10% of the annual turnover of the offending company,
Orders to cease anti-competitive conduct,
Nullification of anti-competitive contracts.
Appeals can be made to administrative courts.
5. International Cooperation
The Dominican Republic cooperates with regional bodies like the CARICOM Competition Commission and international organizations.
The law facilitates cooperation in cross-border competition enforcement.
Summary Table
| Aspect | Dominican Republic Competition Law |
|---|---|
| Main legislation | Law No. 42-08 on the Defense of Competition |
| Enforcement authority | Superintendency of Industry and Commerce (SIC) |
| Prohibited conduct | Anti-competitive agreements, abuse of dominance, merger control |
| Penalties | Fines, corrective orders, nullification of contracts |
| International links | Cooperation with regional and international bodies |
RELATED Blog
0 comments