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Guideline for the investigation of abuse of dominant conducts

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The Superintendency for Market Power Control is the authority for the defence of free competition in Ecuador, which works toward achieving efficiency on the markets, general welfare of consumers and users, and fair trade.

National competition law, as well as other international laws, contains the prohibition of abusively exercising market power, also known as abuse of dominance, through the prohibition of conducts that tend to reduce or eliminate competition in markets.

As a consequence of the commitment of such conducts, there may be harm, on one side to current or potential competitors to whom this abusive conduct tends to displace, or difficult their entry or expansion; and, on the other hand, the lack of competition in markets may also affect consumer and suppliers. These conducts can strengthen the position of the undertaking in the market, enabling abusive behaviours regarding other actors. The lack of competition can generate a raise in sale prices and a reduction in the variety and quality of the offered goods and services.

The lawmaker, by typifying the infraction of abuse of dominance, pretends to protect competition, general welfare and economic efficiency. Such protection benefits the different stakeholders within the different markets that can directly or indirectly be affected by these conducts.

With the aim of increasing the effectivity and quality of the investigations of abuse of dominance, the Superintendency for Market Power Control (SCPM) looks to develop tools that enable the strengthening of the enforcement of the administrative and investigative faculties regarding these kind of conducts.