Competition Law at Peru
Here’s a detailed overview of Competition Law in Peru:
Competition Law in Peru
Peru has a comprehensive competition law framework designed to promote free competition, prevent anti-competitive practices, and protect consumer welfare. The system is modern and aligned with international standards.
Legal Framework
1. Legislative Decree No. 1034 (Competition Law)
Enacted in 2008, this is the main statute regulating competition.
It prohibits anti-competitive agreements, abuse of dominant position, and controls mergers.
The law is enforced by the National Institute for the Defense of Competition and the Protection of Intellectual Property (INDECOPI).
2. INDECOPI – Commission for the Defense of Competition
INDECOPI is the national competition authority.
It investigates violations, reviews mergers, conducts market studies, and enforces sanctions.
Key Provisions
a. Anti-competitive Agreements
Agreements between competitors that restrict competition are prohibited (e.g., price-fixing, market sharing).
Exemptions are possible if the agreement improves efficiency without eliminating competition.
b. Abuse of Dominance
Firms holding a dominant position may not abuse it.
Abuse includes predatory pricing, exclusive dealing, refusal to supply, and discriminatory practices.
c. Merger Control
Transactions exceeding thresholds must be notified to INDECOPI.
The authority assesses whether a merger would substantially lessen competition and may block or condition it.
Enforcement and Sanctions
INDECOPI has investigative powers, including inspections (dawn raids).
It can impose significant fines and order corrective measures.
Decisions can be appealed to the judiciary.
Peru also provides for leniency programs to encourage cartel reporting.
Recent Trends and Focus
Strong enforcement in sectors like telecommunications, mining, retail, and banking.
Active cartel investigations and mergers scrutiny.
Increasing use of economic analysis in competition assessments.
Cooperation with other Latin American countries and international bodies.
Summary
Peru’s competition law is robust, modern, and aligned with international standards.
INDECOPI plays a central role in enforcement.
Emphasis on combating cartels, abuse of dominance, and ensuring fair mergers.
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