Introduction
Competition Report
Other policies
Comment
Over the last few years the National Commission for the Defence of Competition has been engaged in competition advocacy. Each year the commission executes a number of measures that aim to promote awareness of the Antitrust Law and the concept of free competition.
The commission has a wide range of alternative ways to implement competition advocacy policies. One of the most important is the issuance of a periodical publication entitled the Competition Report. This document is addressed to the general public and provides a brief overview of the commission's day-to-day activities. The report is valuable document for those professionals who specialise in competition matters.(1)
Section 24 of the Antitrust Law empowers the commission to implement competition advocacy policies by:
- performing market analysis and investigations;
- encouraging studies and investigations on competition matters;
- issuing opinions regarding competition matters and free concurrence with respect to laws, regulations, communications and administrative acts;
- issuing general or sector recommendations on the types of competition in the markets; and
- collaborating with relevant entities in the negotiation of treaties or international agreements in connection with the regulation of free competition.
The report is a way to convey publicly what the commission is doing. It provides a descriptive and statistical analysis of the merger control cases that were subject to mandatory notification before the commission. The report also provides charts that detail which local economy markets (eg, telecommunications, pay-per-view television, oil and gas) saw the most relevant mergers and acquisitions throughout a certain year. The outcome of the competition analysis made by the commission (approval, rejection or imposition of conditions) is also included.
The last report issued by the commission covered the period 2007 to 2009. For the purposes of the report, the commission analysed 35, 47 and 46 merger cases in 2007, 2008 and 2009, respectively. During this period the commission rejected only two mergers and made conditional only four.
The report additionally informs the public of anti-competitive conduct, market investigations and preventive measures. The commission's workload regarding such measures is high because they can be initiated either ex officio or upon a third-party request. This part of the report demonstrates the commission's prosecuting attitude and addresses any possible restrictions to competition based on exclusory practices or collusive conduct among competitors.
During 2007, 2008 and 2009 the commission analysed 48, 16 and 18 anti-competitive conduct cases, respectively. A high percentage of such cases consisted of allegations of abuse of dominant position and exclusory practices. The commission was also involved in four market investigations and issued four preventive measures.
The report also informs the public of the institutional and cooperation agreements executed by the commission. From 2007 to 2009 the commission participated in competition committees, seminars and forums within the World Trade Organisation and the Organisation for Economic Cooperation and Development. It was also involved in cooperation agreements with the other Mercosur countries (Brazil, Paraguay and Uruguay) and Canada.
The commission's policies for competition advocacy also include the issuance of pro-competitive recommendations within certain markets. Such recommendations are very useful for those regulatory agencies that have competition concerns within a market that is under their regulatory scope.
During 2010 the commission issued a valuable pro-competitive recommendation on the national telecommunications plan, entitled "Argentina Connected". The main goal of the plan was to set up fibre-optic services throughout all provinces in Argentina. The recommendation stated that the plan was highly pro-competitive for the telecommunications industry. It argued that the development of a neutral transportation network would allow for the regional proliferation of new players and indirectly stimulate private investments in those markets.
The role of the commission in the implementation of competition advocacy policies is important for the evolution of antitrust practices in Argentina. The institutional and cooperation agreements that the commission is executing with other competition agencies on a regional and international level are extremely useful for improving Argentina's antitrust regime, and thus market competition conditions.
The report evidences the efforts that the commission is making to implement the competition advocacy policies set forth in Section 24 of the Antitrust Law.
For further information on this topic please contact Alfredo M O'Farrell or Miguel del Pino at Marval O'Farrell & Mairal by telephone (+54 11 4310 0100), fax (+54 11 4310 0200) or email ([email protected] or [email protected]). The Marval O'Farrell & Mairal website can be accessed at www.marval.com.ar.
Endnotes
(1) Competition Report for 2007/2009 and competition information available at www.cndc.gov.ar.