Regulation of Antitrust Law
In 2013, law No. 4956 regarding a new regime on competition in Paraguay was enacted and the principles that rule free competition, prohibited acts, practices and conducts as well as the corresponding penalties were established. Additionally, it set out the creation of a National Antitrust Commission (CONACOM) for the administration of the measures contained therein.
In April 2014, Decree No. 1490 that rules Law No. 4956 was approved. The main provisions determine the basis for the application of penalties stated in the law and the creation and functioning of CONACOM. It also regulates the creation of economic concentrations in Paraguay, which will have to be previously authorized.
Some of the prohibited conducts stated in Decree 1490 are the agreements restrictive of competition and collusive tendering. Additionally, it establishes the characteristics of predatory pricing and the calculation of the market share.
It is worth mentioning that the Decree establishes that a conduct or practice that could be considered anti-competitive in accordance with the provisions of the law, might not be prohibitive and punishable per se. The CONACOM may, after analyzing whether said practice generates an increase in economic efficiency and consequently a benefit to consumers, authorize it, provided that such profits counteract the negative effects of the practice itself.
It is estimated that, by the beginning of 2015, the necessary legal body for the correct implementation and application of the corresponding legal provisions, will be ready.