Does the Ecuadorian Competition Authority Lack focus?

September 6, 2016

Does the Ecuadorian Competition Authority Lack focus? – Xavier Andrade & Estefanía Fierro (Andrade Velóz)

Edited by Iratxe Gurpegui (OECD, Competition Expert)².

The Ecuadorian competition authority (Superintendencia de Control del Poder de Mercado – hereinafter “Competition Authority”) has devoted great effort to activities that have little connection to its main role (i.e. “to ensure the transparency and efficiency of markets and to encourage competition” ) or to activities that, although certainly related to this role, have little relevance for the competitive process.

We do not question the Competition Authority’s good intentions, but we do question its power to undertake certain activities and the dispersion that carrying out a wide variety of activities – some of them of little significance for the economy – may cause.

For the debate, below we briefly explain some of the activities carried out by the Competition Authority whose purpose is questionable:

Good Practices Manuals

The Competition Authority has produced a large number of “manuals” aimed at regulating various industries, including agriculture, pharmaceuticals, palm oil, textiles, vehicles and insurance, independent retailers, land transportation, advertising, public procurement and citizen monitoring, among others.

From the point of view of administrative law, according to the prerogatives provided for by the Competition Act, the Competition Authority is not empow