Costs of Not Having a Competition Law

The lack of a competition law in Guatemala could expose the country to sanctions from the European authorities, since it is a requirement demanded in the regulations of the Association Agreement with the European Union.

Friday, August 23, 2019

Since the end of 2016, the Association Agreement (AdA) required Guatemala to have a law on the matter, since in 2019 a Central American competition authority would have to be created. However, it cannot operate, because there is no legal framework.

You may be interested in "Guatemala: Competition Law Goes Ahead

Jesús Bores, a specialist in competition law, told that "... one of the great risks for Guatemala is that it could be sanctioned for failing to comply with the regulations within the framework of the AdA."

Álvaro Fernández Sánchez, Director of Competition at the Guatemalan Ministry of Economy, explained that "... no de facto measures have been reached, but the European Union has expressed through different diplomatic channels the need to have this legal instrument."

According to deputies of the Guatemalan Congress, in the coming weeks the bill is expected to go to second reading, to try to approve it in third reading before the end of 2019. If this deadline is not met, the approval will remain in the hands of the new legislature, which will assume its functions on January 14, 2020.

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