By Malcolm Rowat, Michele Lubrano, Rafael Porrata
Read or Download Competition policy and MERCOSUR, Volumes 23-385 PDF
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Extra info for Competition policy and MERCOSUR, Volumes 23-385
With respect to issues of market structure, competition authorities have naturally taken an interest in the potential impact of inter-corporate transactions involving horizontal or Page 4 vertical mergers, takeovers, joint ventures or asset transfers and conglomerate transactions involving firms in unrelated businesses since these can lead to a reduction in the independence of competing suppliers or increased concentration of the market. , as against the likely rise of excessive concentration. In the context of developing countries, such considerations take on heightened importance where particular industries tend to be already highly concentrated and where economies of scale become an important consideration in developing export potential in the absence of a large domestic market.
5. Regardless of the intent of the Protocol and Basic Elements, the national and/or community-wide institutions charged with the enforcement of competition law throughout MERCOSUR must harmonize their enforcement mechanisms and devise cooperation measures among themselves in order to ensure the efficient and effective enforcement of competition law throughout the region. 6. The adjudication procedures for competition law enforcement disputes arising at the regional level set forth in the draft Protocol and Basic Elements are inadequate.
The major policy shortcoming lies in the area of bankruptcy where an archaic law continues to deny creditors adequate protection against one-sided insolvency proceedings which undercuts access to credit and at the same time prevents the liquidation of otherwise non-viable companies. Paraguay Paraguay's entry into MERCOSUR precipitated the need for an overhaul of economic legislation given the historical record of public sector industrial concentration as well as concentration in importation and internal distribution of goods including through smuggling.