Competition Law at Panama
Here’s an overview of Competition Law in Panama:
Competition Law in Panama
1. Legal Framework:
Panama’s competition law is primarily governed by Law No. 45 of 2007 (also known as the Competition Law).
This law establishes the rules to prevent and sanction anti-competitive practices and promote free competition in the Panamanian market.
2. Objectives:
To maintain, protect, and promote free competition.
To prevent practices that restrict, distort, or limit competition.
To safeguard consumer welfare and market efficiency.
3. Regulatory Authority:
The Authority for Consumer Protection and Defense of Competition (ACODECO) is the government agency responsible for enforcing competition law.
ACODECO investigates complaints, conducts market studies, and imposes sanctions on anti-competitive conduct.
4. Key Provisions:
Anti-competitive agreements: Agreements or concerted practices that restrict competition (such as price-fixing, market sharing, bid-rigging) are prohibited.
Abuse of dominant position: Firms holding a dominant market position must not abuse it by imposing unfair prices or trading conditions, limiting production, or excluding competitors.
Merger control: Panama requires notification of mergers and acquisitions when they exceed certain thresholds to prevent substantial reduction of competition.
Unfair competition: The law also addresses acts of unfair competition that harm other businesses or consumers.
5. Enforcement and Penalties:
ACODECO has investigative powers including dawn raids and can request information.
Violations can result in fines up to 10% of the infringing company’s annual turnover.
The authority can order cessation of anti-competitive behavior and other corrective measures.
Appeals against ACODECO’s decisions can be made to the judiciary.
6. Recent Developments:
ACODECO has been active in investigating cartel behavior, abuse of dominance, and scrutinizing mergers especially in sectors like telecommunications, construction, and retail.
Panama continues efforts to strengthen competition enforcement and increase awareness among businesses.
Summary
Panama’s Law No. 45 of 2007 provides a comprehensive competition law framework enforced by ACODECO. The law focuses on preventing anti-competitive agreements, abuse of dominance, and controlling mergers to foster competitive markets and protect consumers.
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