Recently, the National Competition Commission (CONACOM) has taken a couple of actions demonstrating the initiation of formal investigations under Law No. 4956/2013 on Defense of Competition in Paraguay:

1. Last June 11, CONACOM ordered the opening of its first investigation file for possible practice of prohibited agreement (art. 8). The companies under investigation are Insumos Médicos S.A., Eurotec S.A., and Medical Pharma S.A., in the framework of public bidding processes for the acquisition of medicines and goods related to health services (Expte. 1/2020; link below to download CONACOM's resolution).
2. Last June 19, the Investigation Directorate of the National Competition Commission (CONACOM) initiated preliminary investigation proceedings in order to identify possible infringements to the Competition Law by GRUPO ATHENA FOODS (Minerva S.A.) related to Frigorífico FRIGONORTE. Within the framework of such investigation, a merger transaction between Frigomerc S.A. and Frigorífico Norte S.A. was subsequently notified on June 26, 2020.

These proceedings constitute the first steps taken by CONACOM in the use of its investigative powers and its power to initiate ex officio proceedings, which is a change that forces local players to strengthen their internal competition policies, particularly those companies with a dominant position, acting in markets with a small number of players or entering into commercial agreements with competitors. The Antitrust Law provides for sanctions that may affect both companies and their managers.