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ANTITRUST & COMPETITION
Abuse of dominant position / law for the defence of the competition.
By Jacqueline Dhimes.
The Dominican Republic Beer market. First case decided by the National Commission for the Defense of Competition.
On January 31, 2017, through Resolution No. DE-001-2017, the Executive Council for the National Commission for the Defense of the Competition of the Dominican Republic-hereinafter known as “PROCOMPETENCIA”- ordered a formal investigation regards to the production, commercialization and distribution of beer in the Dominican Republic due to “the existence of facts that can reasonably point out to unlawful practices, a result of an abuse of power from a dominant or privileged market position as is the National Dominican Beer company (Cervecería Nacional Dominican, S.A.)”.
As a result of this investigation, on January 5 2018, the Executive Council of PROCOMPETENCIA presented its evidence to the President of the Directive Council of this same institution “Instruction of the Investigation initiated under Resolution No. No. 001-2018” soliciting the Directive Council to commence administrative sanctions against the National Dominican Beer Company for existing violations.
Article 6 on Law 42-08 on the Defense of the Competence shows violations on a), b) and d) as we will summarize below:
Article 6- “An abuse from a dominant market position. Conduct that constitute an abuse from a dominant market position are unlawful if they create unjustifiable barriers or boundaries upon competitors. Included under the category of abuse of power from a dominant market position are the following forms of conduct:
a) “To condition purchase or selling decisions reliant on the buyer abstaining from purchasing or distributing products or services from other competing entities”;
b) “suppliers unwarranted imposition of prices or other selling conditions to its distributors, without their being a commercial reason to justify this action”;
d) “the sale or any other transaction conditioned upon the receiver not doing business be it either purchasing selling or distributing any other product from another entity”.