We briefly outline recent competition advocacy news aiming to highlight the trends and developments that your business should be aware of.
Colombia
The Superintendence of Industry and Commerce (“SIC”) CANNOT conduct dawn raids without a court order
By means of Ruling C-165 of 2019, the Constitutional Court declared Constitutional Article 59 (partial) of Law 1480, 2011 (Consumer Statute) under which the SIC is vested with powers to carry out dawn raids, taking evidence and questioning witnesses. This power may be used by the SIC with prior approval of a judge. The decision has not been published, but by analogy this interpretation of the SIC´s powers is also applicable to antitrust matters. The landmark decision is set to control “fishing expedition” conducted by the SIC following precedents in the EU, where competition authorities decisions have been annulled for violation of due process.
Peru
Merger control law issued
The Peruvian congress approved the issuance of a law regarding merger control in this country. This law is still pending for enactment by the executive and it is expected to enter into force as of May of 2020,.
The jurisdictional thresholds for Peru are as follows:
- The total sum of the sales or gross income of the agents in the country of the companies involved in the transaction has reached in the last fiscal year prior to that in which the transaction is notified, is equal to or greater than USD $150 million.
- That at least two of the agents to be merged have generated sales that are equal to or greater than USD $31 million.
Chile
New standards for merger review procedure
The Economic General Attorney´s Office announced that as of August 9th, 2019 new standards will be implemented in the merger review procedure in order to determine whether mergers must be previously notified before this authority. The new threshold are as follows:
- The sum of the sales of the agents to be merged is equal to or greater than USD $ 107.6 million, and
- That at least two of the agents to be merged have generated sales that exceed of USD $ 19.4 million individually.
Argentina
A new decree regarding commercial fariness was issued
On April 22, 2019 a new “commercial fairness” regulation was issued Decree No. 274/2019, was published in the Official Gazette of the Republic of Argentina repealing the earlier law, Law of Commercial Fairness No. 22.802.
Titles I, II, III, IV, V, VI y VIII have the specific purpose to ensure fairness and transparency in the commercial relations and to guarantee the access of essential information in regard with the products and services marketed in this country.
This decree prohibits the exercise of an unfair competition, whatever its form, whenever it is destined and its objective suitable to affect the competitive position of a person or the suitable functioning of the competitive process.
European Union
Companies may be sanctioned with a double fine
The EU General Court issued a ruling by which national competition authorities can impose fines for the violation of both national and supranational regulations, as long as the total sum of the fines is proportional to the violation.
South Africa
Guidelines for calculating fines in cases of Gun-Jumping
The South African Competition Commission issued new guidelines to calculate fines for Gun-Jumping. The previous method was based on the volume of sales. The new method will be based on registration fees and filing fees.
To read about the most recent mergers in the market, click here.