Colombia: Understanding The Scope Of The Superintendence Of Industry And Commerce Regarding Actions That Affect Free Competition

Last Updated: 9 November 2016
Article by Enrique Álvarez

2015 will be remembered, among other things, as one of the years that free competition was most defended, at least in regards to investigations. According to the Superintendence of Industry and Commerce (SIC), in November of 2015, there were more than 500 market agents being investigated by the SIC for possible collusion. Among these, 358 were public contract disputes. This was the year that several important measures were taken against "cartelización" (monopolistic competition) in various sectors of the Colombian economy.

The best-known recent example was that of sugar. In this probe, after a five year SIC investigation, it was uncovered that the national sugar producers had reached an agreement to prevent other brands from entering the country, an act known as an exclusionary agreement. This entails the involved parties establishing their own rules and preventing other entities from competing under equal conditions. This practice, directly against free competition, led to the SIC imposing one of the highest fines in the history of Colombia.

Free competition has, indeed, been regulated for several years in our country. The 1991 Constitution, however, secured and strengthened market regulation with Law 1480, passed in 2011. In recent times, the Superintendence of Industry and Commerce has been in charge of ensuring that free competition becomes a more and more transparent practice.

The SIC has played a fundamental role in guaranteeing that free competition in Colombia remains free from manipulation, as in the aforementioned examples. Their work as a regulatory entity has led to a situation in which companies are playing fairly in the national market.

Despite these advances, companies are far from free of manipulative actions that employees, executives, and people within their organizations may take against free competition. For this reason, law firms with expertise in this area, like Lloreda Camacho, recommend that companies know the scope of the SIC and how to protect themselves from these situations which may affect them.

What the SIC Can and Cannot Do

Since Law 1480 was passed in 2011, the SIC has possessed new tools to defend the right to free competition. One example is the increase in fines to companies or individuals that do not obey this law. The SIC is now able to impose fines of up to 100,000 minimum salaries (approximately 68.9 billion pesos) for companies and up to 2,000 minimum salaries (approximately 1.379 billion pesos) for individuals, enough to potentially cause bankruptcy for either entity.

The SIC does not play the role of judge in these cases; but they can initiate an investigation that could lead to fines. They have a wide range of tools in these instances including information gathering from all of the employees, searching all of the company computers, gaining access to the company server, and receiving testimony from any third party that may have knowledge of suspicious acts. Based upon the information collected, they can begin to construct a body of evidence, which will determine if the sanction will be imposed.

The SIC has another tool at its disposal: a program in which people who wish to incriminate or report unusual or suspicious acts have the opportunity to acquire personal benefits, including the reduction or annulment of the fine. This all depends upon the information supplied and its relevance to the case in question. These capabilities have strengthened the SIC's ability to regulate the Colombian market and promote free competition.

In addition to understanding the scope of the SIC, Lloreda Camacho recommends that companies develop the capacity to manage fulfillment and auditing programs related to competition. The aim of said programs would be to reduce the possibility of the company committing acts that impede free competition.

These programs are successful worldwide for various reasons. First, the company is demonstrating its diligence in monitoring itself to prevent these kinds of actions. Second, if the company eventually does come under investigation for said acts, the best way to prove that the company is complying with the law is proving that it has a well-established monitoring program. In this way, the company will have solid defense mechanisms and could implement a faster and more efficient denouncement process in the presence of the SIC that would be favorable to the company.

The programs require a high level of training that will help the businessman make crucial decisions in the best interest of the company. These decisions may relate to price setting, promotions, and/or follow-up on fulfillment of the aforementioned protocols. In case something suspicious does arise, the necessary alarms would sound, and they can regain control to avoid succumbing to illegal situations.

Understanding the scope of the SIC regarding this topic and knowing that there are mechanisms to prevent sanctions, it is time for companies to take matters into their own hands, seek advice, and continue to strengthen free competition in Colombia.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.