Competition Law at Ecuador
Here’s an overview of Competition Law in Ecuador:
Competition Law in Ecuador
1. Legal Framework
Ecuador regulates competition mainly through the Organic Law for the Regulation and Control of Market Power (Ley Orgánica de Regulación y Control del Poder de Mercado), enacted in 2011.
This law aims to promote fair competition, prevent monopolistic practices, and regulate market power abuse.
2. Key Institutions
Superintendence of Market Power Control (Superintendencia de Control del Poder de Mercado - SCPM): The primary regulatory authority responsible for enforcing competition law in Ecuador.
The SCPM investigates anti-competitive behavior, reviews mergers, and imposes sanctions.
3. Prohibited Practices
Anti-competitive Agreements: Cartels, collusion, price-fixing, market allocation, and other agreements that restrict competition are banned.
Abuse of Dominant Position: Firms holding dominant market positions cannot exploit their power to harm competitors or consumers.
Monopolistic Practices: The law prohibits monopolies and the misuse of market power.
Merger Control: Mergers and acquisitions that exceed certain thresholds require prior authorization by the SCPM to avoid harming competition.
4. Enforcement and Sanctions
The SCPM has investigative powers including conducting dawn raids and requesting documents.
Sanctions include fines, orders to cease anti-competitive conduct, and other corrective measures.
Private parties can file complaints and seek damages for anti-competitive behavior.
The law also provides for leniency programs to encourage cartel members to come forward.
5. Recent Developments
Ecuador has been improving its enforcement capacity with increased resources for the SCPM.
The government has promoted transparency and compliance programs among businesses.
Ecuador cooperates with other Latin American countries through regional competition networks.
Summary
Ecuador’s competition law is governed by the Organic Law for the Regulation and Control of Market Power and enforced by the Superintendence of Market Power Control (SCPM). It prohibits cartels, abuse of dominance, and controls mergers to protect competition and consumers. Ecuador continues to develop its competition policy with a focus on strengthening enforcement and regional cooperation.
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