Originally from:
Doing Business in Colombia - 2nd Edition - Hardcover
Doing Business in Colombia - 2nd Edition - Electronic
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Chapter 13
Competition Law
The Political Constitution, Law 155 of 1959, Decree 2153 of 1992, Law
256 of 1996, Law 446 of 1998, Law 510 of 1999, Decree 1130 of 1999,
amongst other legislative pieces, constitute the legal framework in matters
of competition in Colombia.
I. THE CONSTITUTIONAL RIGHT TO COMPETE
Article 333 of the Political Constitution establishes as directing
principles of the Social State of Law prevailing in Colombia, the freedom of
enterprise and the freedom to compete, supported by Article 334 that
assigns the general direction of the economy to the State.
By virtue of the above stated principles, all individuals have the right to
concur into the market within a general framework of freedom of
competition in which each and all participants endeavors to attract as many
possible customers and, if successful, its competitors realize a decrease in
demand for those mercantile services they offer.
If in development of such endeavor to attract consumers, solely legal
efforts are used, those who find themselves on the losing side of the game of
demand and supply, have no alternative but to accept such fact. However, when
the endeavor incorporates unfair or restrictive means of competition that distort
the realities of the market, such conduct becomes subject to restraint.
The right to enjoy free competition is divided into two large branches:
protection against unfair competition and the right to challenge restrictive
commercial practices.
II. RESTRICTIVE COMMERCIAL PRACTICES
Dispositions in Article 1 of Law 155 of 1959 establish that:
it is forbidden to engage in any agreement or convention that—
directly or indirectly—have the intention to limit the production,
supply, distribution or consumption of raw materials, finished
products, merchandise or services of domestic or foreign origin and,
in general in any practices, procedures or systems seeking to limit
free competition and uphold inequitable price levels.
About the Firm:
Cavelier Abogados, a Colombian law firm established in 1953 that combines experience and innovation and stands out as a leading advisor in Latin America in several fields of the law. Using the most modern legal infrastructure and technology, the firm offers clients a strategic partnership for business development with legal services in Colombia and overseas countries. The strength of Cavelier Abogados lies in its Intellectual Property Law and Business Law areas, but the firm is also strong in Corporate Law, Financial Law, Foreign Investment Law, Tax Law and Mining and Hydrocarbons Law. Besides occupying prominent places in the top rankings of law publishers, the firm employs several university professors and authors of books on the practice areas of the firm. Cavelier Abogados also has a network of 469 correspondents in 143 countries. It was also one of the first Colombian law firms to have its own Code of Ethics, which contains higher standards of conduct compared to local legislation. The firm uses a multidisciplinary approach to find creative, prudent and value generating business solutions that optimize clients' return on investment while minimizing risks.
About the Contributors:
Natalia Tobón-Franco is a Lawyer from Universidad de los Andes
(Bogota, Colombia) with an L.L.M. in Intellectual Property Law from
Franklin Pierce Law Center (New Hampshire, U.S.A.); a Professor and
Author of several books and articles on Copyright Law, Freedom of Speech
and Entertainment Law; and an Associate Attorney at Cavelier Abogados.
Eduardo Varela-Pezzano is a Lawyer and Specialist in Intellectual
Property Law from Universidad del Rosario (Bogota, Colombia); an
Intellectual Property Law Professor at Universidad del Rosario; an Author
of several books and articles on Freedom of Speech, Patent, Trademark,
Copyright and Entertainment Law; and an Associate Attorney at Cavelier
Abogados.
