According to Colombian law (Decree 2153 issued in 1.992), the Superintendency of Industry and Commerce (SIC), is the authority empowered to enforce all rules and regulations regarding the promotion of the free competition and restricted commercial practices.
Acting accordingly SIC may take the following actions:
- a.Order preventive measures, suspend behavior and acts contrary to competition law.
- b.Begin investigations at its own initiative or through complaints filed by third parties in connection with possible violations of competition law.
- c.Order the transgressor to modify or end any action contrary to competition law.
- d.Impose fines worth up to 2.000 Colombian minimum monthly legal wages (Approximately US$300.000,00) for acts in violation of competition law.
- e.Impose fines on administrators, legal representatives, directors, auditors and any other individuals who tolerate, or authorize this type of conduct, worth up to 300 Colombian minimum monthly legal wages (Approximately US$45.000,00).
For 1999, the Superintendent of Industry and Commerce has announced that his objective is to ensure strict compliance with these rules, regardless of the importance of economic or industrial groups involved.
Therefore, in the following two months (February and March, 1999) SIC shall issue decisions on investigations initiated on the 3 must important beverage companies in the country; Bavaria (beer); Postobon (soft drinks); and, Panamco-Indega (bottling company for Coca-Cola).
SIC is investigating what apparently is the occurrence of: (i) creation of a cartel in order to fix prices; (ii) setting sales prices for their independent distributors; and, (iii) dividing markets of their agents into geographic areas, in breach of competition regulations.
We are expecting decisions on the above mentioned matters, whereby SIC shall take a new position with regards to the enforcement of competition law 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.