The The weakened fight against cartels in Ecuador: Faded presumptions, unreachable proofs, and impossible violations

Abstract

Economic social welfare in free market is achieved by protecting competition. Despite this fact, cartels obstruct or replace it with illegal cooperation setting market conditions. Competition Law fights against them through tools of deterrence, detection and sanction. These mechanisms are part of a regime for the persecution of cartels and are effective when they are technically interpreted and applied. However, in the Ecuadorian administrative and judicial practice there are erroneous interpretations of the competition regulation, especially in what corresponds to cartel enforcement. This weakening of the regime occurs, at least, when enforcing restriction by object and by effect rules; about the test for concerted practices; and, on the possibility of cartels in public procurement. These erroneous interpretations have generated a structurally weakened fighting mechanism against cartels in Ecuador.