2017 Latin American and Caribbean Competition Forum

The 15th meeting of the Latin American Competition Forum took place in Managua, Nicaragua on 4-5 April 2017.  It was hosted by Nicaragua's Competition Authority, PROCOMPETENCIA.

PROGRAMME AND DOCUMENTS:

» AGENDA

» ORDEN DEL DÍA

» PRESENTATIONS ON SLIDESHARE

» SUMMARY RECORD

SESSION I. CARTELS: ESTIMATION OF HARM IN PUBLIC ENFORCEMENT ACTIONS

Competition authorities typically impose fines on companies for participating in a cartel. Sometimes they are criticised for setting large fines when the actual harm from the cartel is very low. To address this concern, some competition authorities are required also to calculate estimated harm from cartels, as a criterion for setting the fine, which builds on the economic effect of the conduct and not on a predefines formula based on turnovers. A major question then becomes whether fines should be more related to a formula based on affected revenues or whether fines should at least be pre-conditioned or built up from estimates of either harm to consumers or illegitimate profits derived by cartel participants. The roundtable tried to identify and discuss techniques for estimating harm or illegitimate benefits from cartels.

Session Chair:   Frédéric JENNY (Chairman, OECD Competition Committee) 

View some of our previous discussions in relation to the topic:

• Competition and Sanctions in antitrust cases, 2016 Global Forum on Competition Discussion
  
• Quantification of Harm to Competition by National Courts and Competition Agencies, 2011
• Third report on the Implementation of the 1998 Council Recommendation, 2005 
• Recommendation of the Council concerning Effective Action against Hard Core Cartels, 1998

SESSION II. MERGER CONTROL IN LATIN AMERICA AND THE CARIBBEAN - RECENT DEVELOPMENTS AND TRENDS

When faced with a notified merger, competition authorities need to be able to assess any potential anti-competition effects, the magnitude of these effects and their relationship to the potential benefits that the merger could produce.  Merger control raises complex challenges related to the legal standard applied by agencies, to the economic tools they need to master to predict the effects of the transactions and to the remedies– behavioural, structural or a combination of both – they need to devise in case of conditional clearances. 

A number of jurisdictions in the region have recently adopted, or are in the process of adopting a new merger control system; others have amended their regimes to improve their ability to catch, review and remedy potentially anti-competitive transactions. This three part session discussed i) recent developments in the Latin American and Caribbean region on merger control; ii) factors to take into account when considering structural and/or behavioural remedies; iii) and, agency decision making in prohibitions and conditional clearances.

Session Chairs:   Luis Humberto GUZMÁN (President, Procompetencia, Nicaragua) and Mario UMAÑA (Lead Trade and Competition Specialist Integration and Trade Sector, IDB) 

Speakers:

View some of our previous discussions in relation to the topic:

Recommandations and Country related experiences:

• Recommendation concerning International Co-operation on Competition Investigations and Proceedings, 2014
• Country experiences with the 2005 OECD Recommendation on Merger Review, 2013 
• OECD Recommendation on Merger Review, 2005

SESSION III.   ADDRESSING COMPETITION CHALLENGES IN FINANCIAL MARKETS

Competition agencies face a number of sector specific challenges in financial markets. Policy considerations such as market stability and consumer protection are often important for governments and effective co-operation with sector regulators and central banks is frequently required when advocating for policy solutions that take into account efficiency concerns in addition to these other objectives. This session discussed agencies' co-operation with regulators and central banks, while offering an opportunity for agencies to share their experiences and the challenges they have faced when conducting studies of financial markets. 

Session chair:   Marcela GÓMEZ MASÍS (President, COPROCOM, Costa Rica)

Speakers:

View some of our previous discussions in relation to the topic:

• The role of market studies as a tool to promote competition, 2016 Global Forum on Competition Discussion
• Promoting Competition Market Studies in Latin America, 2015
• Role of Competition in Financial Consumer Protection, 2014
• Competition Issues in the Financial Sector, 2011
• Competition, Concentration and Stability in the Banking Sector, 2010
• Strategies for Competition Advocacy, 2010 Latin American Discussion
• Competition and Financial Markets, 2009
• Market Studies, 2008