Defense of competition in Dominican Republic.

By Jacqueline Dhimes

General Law on Defense of Competition in the Dominican Republic (“Law 42-08”), established the 16th of January of 2008 has as its objective to promote and defend free competition in order to increase economic efficiencies in both product and service-based markets. The law has as its main focus to generate benefits and value for consumers in the Dominican Republic.

The law on Defense of Competition regulates and prohibits certain market behaviors and anti-competitive conduct.

The law creates the National Authority for Defense of Competition which is also known as The National Commission for Defense of Competition.

This Commission has two levels of authority which are: The Directive Council that decide and determine which issues are submitted for review and the Executive Branch which is tasked with the due process and investigation of the issues.

Although the Directive Council of the Commission was determined some years ago, it is only until the 5th of January of 2017 that Executive Power, in accordance with the law named its Executive Director, and hence it is at this date that the Commission was empowered to investigate and deliberate upon any anticompetitive acts and behaviors or any infringement of the law.

Under Resolution No. DE-001-2017 on the 31st of January of 2017, the Executive Branch of the National Commission for Defense of Competition (PROCOMPETENCIA) ordered the first investigation “due to the presence (an observance) of factors that reasonably point towards the existence of contrary practices in accordance with Law No. 42-08 General Law for Defense of Competition in the local beer market in Dominican Republic”. It is important to note that the rules concerning the application of the General Law for Defense of Competition has yet to be approved. These rules have been debated by diverse sectors and are currently pending approval by the Executive Power.