Competition Law at Andorra

Andorra has established a comprehensive legal framework to regulate competition and protect consumers, primarily through Law 13/2013, of June 13, known as the Law on Effective Competition and Consumer Protection. This legislation, effective from June 13, 2013, aims to promote fair competition, prevent unfair business practices, and safeguard consumer rights within the Principality.

🇦🇩 Key Provisions of Law 13/2013

1. Promotion of Effective Competition

Objective: To ensure that companies operate independently in the market, subjected to competitive pressures.

Scope: Applies to conduct that has effects in Andorra, regardless of where it occurs or the domicile of the actors.

Prohibited Practices:

Restrictive Agreements: Agreements, decisions, and concerted practices between firms that prevent, restrict, or distort competition.

Abuse of Dominant Position: Behaviors that constitute an abuse of a dominant market position, harming consumers or hindering market entry.

Exemptions: Certain agreements may be exempt if they contribute to improving production or distribution, promote technical or economic progress, and do not eliminate competition in a substantial part of the market.

2. Control of Economic Concentrations

Definition: Economic concentration occurs when there is a change of control over a company, such as through mergers, acquisitions, or the creation of joint ventures.

Notification Requirement: Concentrations that meet certain thresholds must be notified to the Ministry responsible for the economy.

Procedure: The Ministry assesses the concentration's impact on competition and may approve, conditionally approve, or prohibit the operation.

3. Unfair Competition

General Prohibition: All acts of unfair competition are prohibited.

Examples of Unfair Practices:

Misleading advertising.

Imitation of features leading to confusion.

Inducing employees or suppliers to violate contractual obligations.

Selling below cost to eliminate competition.

Harassment or undue influence altering consumer choice

4. Consumer Protection

Consumer Rights: Consumers are entitled to safe goods and services, fair information, and protection against unfair practices.

Obligations of Traders:

Provide clear and accurate information about products and services.

Respond to consumer complaints promptly.

Offer remedies such as repair, replacement, or refund for defective goods.

Administrative Oversight: The Government, through the competent administrative body in matters of consumption, oversees compliance with consumer protection regulations.

⚖️ Enforcement and Sanctions

Administrative Liability: Breaches of competition and consumer protection laws may result in administrative sanctions.

Judicial Actions: Consumers and other affected parties may seek judicial remedies, including compensation for damages.

Public Interest: The Public Prosecutor's Office may intervene in cases affecting the general interest

Ministry Responsible for the Economy: Oversees the implementation and enforcement of competition laws.

Competent Administrative Body in Matters of Consumption: Monitors and enforces consumer protection regulations.

Public Prosecutor's Office: Can initiate legal actions in cases of significant public interest.

For more detailed information, you can refer to the official translation of Law 13/2013

 

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