Recently, the National Competition Commission (CONACOM) undertook a series of formal investigations under the Paraguayan Competition Law 4956/2013.
1. On 11 June, CONACOM initiated the first investigation procedure aimed at determine if prohibited agreements practices have been performed (art. 8); CONACOM focus the investigation in public bidding processes for the purchase of medicines and medical related goods in connection with health services (File 1/2020; find below a link to download the resolution dictated by CONACOM). The companies under investigation are Insumos Médicos S.A., Eurotec S.A., and Medical Pharma S.A.
2. On June 19, the Investigation Department of the National Competition Commission (CONACOM) initiated preliminary investigation proceedings in order to identify possible violations of the Competition Law by the group ATHENA FOODS (Minerva S.A.) in connection with the latest operation involving Frigorífico FRIGONORTE. As part of that investigation, a concentration notice was served to the firms Frigomerc S.A. and Frigorífico Norte S.A. on 26 June. 2020
This is the first time that CONACOM use its investigative powers and its power to initiate ex officio proceedings; this situation should force local businesses to strengthen their internal competition and compliance policies in particular for those companies with a dominant position, acting in markets with a small number of players or entering into commercial agreements with competitors.
The Competition Law provides for sanctions that can affect both companies and their managers.
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