Ecuador

Developing Framework

Organic Law of Market Power Regulation and Control (2011)

Authority: SCPM (Superintendencia de Control del Poder de Mercado) | Enforcement: Active

Overview

Ecuador enacted the Organic Law of Market Power Regulation and Control in 2011, establishing the SCPM as the primary competition authority. The law prohibits anti-competitive agreements, abuse of dominant position and market power, unfair practices, and provides for merger control. The SCPM has broad enforcement powers and also addresses unfair commercial practices. The SCPM has been active in enforcement, with significant cases in sectors including telecommunications, food retail, brewing, and pharmaceuticals. Ecuador's competition law has a distinctive focus on market power abuse and includes provisions addressing economic concentration and unfair practices that go beyond traditional competition law.

14-Topic Competition Coverage

Competition Authority

Fully Addressed

The SCPM is an independent technical body with investigative, decision-making, and sanctioning powers. It also handles unfair commercial practices.

Anti-Competitive Agreements (Horizontal)

Fully Addressed

Horizontal agreements that restrict, prevent, or distort competition are prohibited, including price-fixing, market allocation, and bid-rigging.

Anti-Competitive Agreements (Vertical)

Fully Addressed

Vertical agreements that restrict competition are prohibited, including resale price maintenance, exclusive dealing, and territorial restrictions.

Abuse of Dominance

Fully Addressed

Abuse of market power is prohibited, with a broader concept than traditional dominance. Covers exploitative and exclusionary conduct by firms with significant market power.

Merger Control

Fully Addressed

Mandatory pre-merger notification for economic concentrations exceeding prescribed thresholds. The SCPM reviews within defined timelines and may impose conditions.

Leniency Programme

Partially Addressed

The law provides for exemption from or reduction of sanctions for cooperation in cartel investigations. The programme is developing.

Settlement & Commitment

Partially Addressed

The SCPM may accept commitments to address competition concerns. The framework is developing alongside enforcement practice.

Penalties & Sanctions

Fully Addressed

Fines of up to 12% of total turnover for the most serious infringements. Additional sanctions include cease and desist orders and structural remedies.

Digital Markets Regulation

Not Addressed

No specific digital markets regulation. The SCPM applies the market power law to digital platforms and e-commerce.

Sector Regulators

Fully Addressed

ARCOTEL (telecoms), ARCERNNR (energy), and the Superintendencia de Bancos exercise concurrent regulatory powers in their sectors.

Dawn Raids & Investigations

Fully Addressed

The SCPM has investigation powers including inspections, document seizure, and compulsory information requests.

Private Enforcement

Partially Addressed

Affected parties may seek damages through the courts. Private competition litigation is uncommon but legally available.

International Cooperation

Fully Addressed

Active in Andean Community (CAN) competition cooperation. Participates in ICN and UNCTAD programmes. Cooperation with other Latin American authorities.