Constitutional Court amends the framework for regulating market power

ECIJA G Ecuador’s Competition Department has published a new briefing note on Constitutional Court Ruling No. 43-24-IN/26, which declared the amendments to Articles 9, 11, 78 and 80 of the Organic Law on the Regulation and Control of Market Power (LORCPM) to be unconstitutional, with retroactive effect, the amendments to Articles 9, 11, 78 and 80 of the Organic Law on the Regulation and Control of Market Power (LORCPM).

The decision introduces significant changes to the legal framework governing competition in Ecuador, by reinstating the text resulting from the presidential veto and amending key aspects of the application of the legislation. These include a new standard of proof for cases of abuse of a dominant position, which requires proof of the existence and use of market power, as well as the causal link between the conduct and its effects on competition.

Furthermore, the ruling redefines the treatment of collusive practices, distinguishing between horizontal and vertical agreements; it introduces changes to the authority to establish the methodology for calculating penalties; and it transfers this competence to the Regulatory Board, replacing the Superintendency of Economic Competition.

Another particularly significant aspect is the retroactive effect of the decision, which could impact administrative and penalty proceedings initiated or concluded under the provisions declared unconstitutional, opening up the possibility of reviewing certain proceedings in accordance with the new legal framework.

We invite you to read our briefing note to understand the scope of Judgment No. 43-24-IN/26 and the key aspects that companies should consider in light of this important precedent in the field of competition.