Inventory of Domestic Laws and Regulations Relating to
Competition Policy in the Western Hemisphere
Submitted by the OAS Trade Unit to the FTAA Working Group on Competition Policies
V. General Prohibitions
Argentina
Acts and behaviors related to the production of trade of goods and services limiting, restricting or distorting competition or constituting abuse of a dominant position in a market, in a manner such, which may result in a damage to the general economic interest are prohibited and will be penalized pursuant to the rules of this law. (Article 1).
Acts and behaviors listed in Article 41are particularly included in Article 1, provided the conditions stated in it, occur. (Article 3).
Bolivia
Private economic power shall not be allowed to accumulate to the extent that it endangers the economic independence of the state. No form of private monopoly is recognized. When public service concessions are granted, as an exception to this policy, they shall not be for longer than 40 years. (Constitution, Article 134).
As provided in the Constitution, no form of private monopoly is recognized. Activities of production, domestic marketing, export, import, and financial services cannot seek protected status from the government. They must operate in a framework of economic efficiency and competition. (Investment Law, Article 14).
Except as provided in the applicable sectoral legal provisions, corporations and other entities engaged in telecommunications, electricity, energy, transportation, or water sectors and others that come under the scope of this law shall operate in a manner that ensures free competition, avoiding actions that prevent, restrict, or distort competition. (Sectoral Regulation System Law, Article 15).
Brazil
Brazilian legislation prohibits any practice aimed at restricting, limiting, or prejudicial to free competition, dominating the relevant market of goods or services, arbitrarily increasing profits, or abusively exercising dominant market position.
Canada
Prohibitions contained in the Competition Act take two different forms: criminal offenses and civil reviewable matters set out under Prohibited Conducts.
Colombia
Article 1 of Law 155, as amended by Article 10 of Decree 3307 of 1963: It is illegal to enter into any agreement that directly or indirectly tends to limit production, supply, distribution, or consumption of national or foreign raw materials, products, merchandise, or services; and, in general, to engage in any practices, procedures, or systems that tend to limit free competition and to maintain or fix unfair prices.
According to Article 46 of Decree No. 2153 of 1992: Within the terms of Law 155 of 1959, all conducts affecting free competition in the markets which pursuant to the terms of the Civil Code are considered to have an illicit purpose, are prohibited.
Costa Rica
(...) this law prohibit and penalize public and private monopolies and monopolistic practices that impede or restrain competition, access of competitors to markets or removal of competitors from markets (...) (Article 10).
Chile
Anyone executing or going into, individually or collectively, any fact, act or convention tending to impede the free-competition within the country in economic activities, both in that of internal character and concerning external trade activities, shall be punished with petty imprisonment in any of its degrees.
When the offense affects essential articles or services, such as those corresponding to feeding, clothes, housing, medicine or health, the punishment will be increased in one degree. (Article 1). Monopolies are prohibited, as is any practice, as defined in this Act, which diminishes, harms or impedes competition in the production, processing, distribution or marketing of goods and services. (Article 8).
Pursuant to the provisions of this law, acts or behavior involving economic activities that constitute abuse of a dominant market position or limit, restrain, or distort free competition in a manner that injures the common economic interest in national territory are prohibited and shall be punished. (Article 3).
Dominican Republic
Setting of artificial prices, spreading of false rumors, and collusion among business executives are prohibited. (Criminal Code, Articles 419 and 420).
Arrangements or conspiracy to set false prices on certain articles and services deemed to be basic necessities are prohibited. (Law No. 13 of 1963).
Guatemala
Practices that lead to excessive concentration in the provision of goods and means of production. National Constitution
Monopolies and privileged relationships. National Constitution.
Illegal acts that pose a threat to the national economy; monopolistic and speculative practices. Criminal Code.
Any acts or deeds undertaken in bad faith or contrary to normal and accepted business practices shall be deemed instances of unfair competition, and therefore prohibited. (Article 362 of the Commercial Code).
Jamaica
Monopolies and measures to exclude competitors are prohibited, as are any practices that, under the terms of this law, tend to diminish, harm or impede competition and the freedom to produce, process, distribute or market goods and services. (Article 8).
Mexico
Monopolies and measures to exclude competitors are prohibited, as are any practices that, under the terms of this law, tend to diminish, harm or impede competition and the freedom to produce, process, distribute or market goods and services. (Article 8).
Panama
This Law prohibits any action, contract or practice which restricts, diminishes, damages, impedes or in any other way harms free economic competition and free competition in the production, processing, distribution, supply or marketing of goods and services. (Article 5).
Peru
Pursuant to the provisions of this law, acts or behavior involving economic activities that constitute abuse of a dominant market position or limit, restrain, or distort free competition in a manner that injures the common economic interest in national territory are prohibited and shall be punished.
United States
"Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations, is declared to be illegal". (Sherman Act, Section 1).
It is unlawful to "monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several states, or with foreign nations". (Sherman Act , Section 2).
"[U]nfair methods of competition in or affecting commerce" are prohibited. (Federal Trade Commission Act, Section 5).
Venezuela
Conduct, practices, agreements, conventions, contracts, or decisions that impede, restrict, falsify, or limit free competition are prohibited. (Article 5).
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