What is Antitrust Law and what does it has to do with merger control rules?
Competition Law sets the rules governing the exchange of goods and services in the free market. It protects market freedom, the balance between supply and demand and encourages economic efficiency. Also, it helps to promote and regulate strong competition between different market players, to guide the action of the different competitors and to protect consumers. Those rules seek to protect the interests of consumers and to promote competition in a specific market by prohibiting individual or collective acts and/ or behaviors that can restrict competition by imposing barriers to entry to the market, by allowing the establishment of monopolies, by discriminating other actors of the market or by the establishment or abuse of a dominant position, among others.
Finally, Competition Law includes the regulation regarding (a) merger control, (b) anti-competitive and restrictive practices, (c) unfair competition and (d) consumer rights.
In the following paragraphs we are going to make a brief description of Merger Control regulation.
Colombian Antitrust Authority and applicable legal framework on Merger Control?
Legal Framework Law 1340 of 2009 and Resolution 10930 of 2015. Antitrust Authority According to Law 1340 of 2009, the Superintendence of Industry and Commerce ("SIC") is the only authority entitled to review a Merger in order to determine if it restraints competition in a relevant market. Exceptions:
(i) Superintendence of Finance of Colombia ("SFC") reviews mergers which take place between two or more companies or institutions supervised by the SFC.
(ii) Civil Aviation Authority: this entity supervises all business operations taking place in the aviation sector, such as code sharing agreements, joint exploitation, charter agreements, among others.
Legal Framework: Law 155 of 1959, Decree 1302 of 1964, Law 1340 of 2009 and Resolution 10930 of 2015. III. Analysis Criteria: Objective and Subjective Standards and Thresholds
According to the relevant regulations on merger control, specifically the provisions of Article 9 of Law 1340 of 2009 and in accordance with article first of Resolution 10930 of 2015, any transaction that results in the merger, consolidation, integration or acquisition of control has to be informed, as long as the following conditions are met:
(i) When considered individually or collectively, the parties had during the fiscal year previous to the proposed transaction,...
Business In A Nutshell Antitrust 2016
|Author:||Gomez-Pinzon Zuleta Abogados S.A.S.|
|Profession:||Gomez-Pinzon Zuleta Abogados S.A.S.|
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