Indicated in search of equity

The regulation of markets in goods and services, the promotion of the entrepreneurship and the Elimination of trade barriers are key aspects to ensure that business operations are carried out within a framework of practical loyal.

The Commission for the defence of competition (indicated), which on Tuesday of this week presented his credentials as body responsible for ensuring compliance with law 42-08 on the competition in country, will have among its functions the promotion and advocacy of free market share. This follow-on mission arises from the understanding that the implementation of the law is associated with a change in mentality both businesses and consumers.

Reported that the Chairman of the Board of Directors of the entity, Luis Reyes, this type of regulator exists in most countries and in Latin America only Guatemala and Paraguay do not have this u000ainstitution.

The official stressed that the implementation of regulations often generate much controversy because it's breaking with business habitual practices, that the law prohibits any price agreement between undertakings and the distribution of market shares.

Says it Leyda Reyes, Member of the Board of Directors, one of the main aspects of the competition act is the abuse of dominant possession, that is, when a company has a privileged position in the market, either because of their size or on the basis of the share of market that counts, that puts the other firms at a disadvantage to compete.

"For developing countries, the legislation regulating these markets that operate imperfectly is very important because it democratizes the participation and encourages all companies to compete regardless of its size", u000asaid.

Consumer
Reyes stressed that the implementation of the trade regulations favour consumers because competition encourages innovation and quality, which creates more choice of products and prices to choose from.

"Many companies are in the market and are not economically viable, so the consumer is that pays its permanence, but when there is a competition authority which fulfils its role these companies have to exit the market because they will not have possibility to compete", said.

The President pointed out that it is complemented with defence of the rights of consumers, although they use different methods of regulation are not substitutes.

As mentioned, research in the problem - scams years reflects a close relationship between the implementation of a competition law, the productivity of markets and growth economic.

Luis Reyes said that the law u000aempowering the Commission to revise the regulations of institutions specializing in certain markets and to make public recommendations for correction. Also calls for development after serving two years of its entry into force of a regulation in coordination with the responsible entities of sectoral regulations, which included all superintendences.

Entrepreneurship
Antonio Rodríguez Masfield, Member of the Council, stressed that the regulation of competition brings with it the promotion of innovation and entrepreneurship, aspects that have been fundamental in the countries that have been successful in terms of economic growth, technological development and improvement of the quality of products and offers.

Considered that the main constraints to undertake entrepreneurial projects are the barriers to entry and exit of markets, access to resources and analysis of the u000aventure capital mechanisms to operate. "In an economy in which competition is limited transactional costs are very high," he explained.

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