Government enacts law that penalizes anti-competitive practices with up to 6 years in prison

The government enacted the Law 31775what are you looking for combat anti-competitive practices with custodial sentences of not less than two nor more than six yearswhich had previously been approved by the Congress of the Republic.

The legal tool will strengthen the work of the National Institute for the Defense of Competition and the Protection of Intellectual Property (Indecopi) and the Supervisory Agency for Private Investment in Telecommunications (Osiptel) to combat these bad practices.

In this way, article 232 of the Penal Code is modified in the following terms:

“Article 232. Abuse of economic power
Those who participate in an anticompetitive agreement or practice subject to an absolute prohibition established in Legislative Decree No. 1034, which approves the Law for the Repression of Anticompetitive Conduct, or a rule that replaces it, in order to prevent, restrict or distort free competition , will be punished with a custodial sentence of not less than 2 years nor more than 6 years, with 180 to 365 days-fine and disqualification in accordance with article 36, paragraphs 2 and 4”.

This is the initiative authored by Congresswoman Adriana Tudela Gutiérrez (Avanza País), which was ruled jointly and by consensus through a substitute text prepared by the main and second commissions, the Justice and Human Rights Commission, and the Defense Commission. of the Consumer and Regulatory Bodies of Public Services, respectively.

The new law also incorporates paragraph 36.4 in article 36 of Legislative Decree No. 1034, which approves the Law for the Repression of Anti-Competitive Conduct, in the following terms:

“Article 36.- Final resolution
36.4. Indecopi and Osiptel within a maximum period of 5 business days, counted from the issuance of the final resolution on the existence of an agreement or anticompetitive practice subject to an absolute prohibition established in Legislative Decree No. 1034, which approves the Law for the Suppression of Anti-Competitive Conduct, or regulation that replaces it, informs the Public Ministry, under institutional responsibility, of said resolution, as well as the quality of the identity of the whistleblower”.

Indecopi and Osiptel have a period of 60 business days from the entry into force of this law to adapt their standards to the changes provided.

It should be remembered that the Organization for Economic Cooperation and Development (OECD) indicates that the most serious collusive practices, such as cartels, deserve special reproach from society and the State. Along these lines, it recommends sanctions for this type of conduct.