The rules of free competition guarantee that enterprises will have free access under competitive conditions to the goods and services they require for production purposes, thereby promoting economic efficiency and seeking the consumers’ wellbeing. 

Andean Community Commission Decision 608 regulates free competition in the Andean subregion.  It prohibits and sanctions behaviors in restraint of free competition that affect the subregion, whether exercised within the territory of one or more Member Countries, or of a country outside the Andean Community, and whose real effects are felt in one or more Member Countries.  Practices originating in or affecting a single Member Country or other unforeseen situations are excluded from the effects of this Decision and will be governed by the respective Member Countries’ national legislation.

Abuse of a position of dominance by an economic agent or agreements between such agents that have the intent or effect of substantially restricting, affecting or distorting market supply and demand conditions constitute behaviors in restraint of free competition. 

The Andean Community General Secretariat can start an investigation on its own initiative or at the request of qualified national authorities in the area of free competition, Member Country national integration bodies, or natural or artificial persons under public or private law, consumers’ organizations or other entities, if there is evidence of behavior that could unduly restrain market competition.

The first phase of the investigation is carried out jointly with qualified Member Country authorities in the area of free competition.  Hearings may be held, agreements executed and precautionary measures established. Once the investigation has concluded and the General Secretariat has prepared the Report, it will be made available to the parties in order to hear their arguments and to the members of the Andean Committee on the Defense of Free Competition, made up of one high-level representative from each Member Country, in order to receive their recommendations.  The General Secretariat, in its final decision, should go on record with its opinion about the recommendation that has been made.

Corrective measures and sanctions may be imposed as a result.  Responsible for their execution are the governments of the Member Countries where the enterprises that are the object of the measure or their main place of business in the subregion are located or where the effects of the practices denounced under national law are felt. 

The national competition authorities that participate with the General Secretariat in the investigations are:  Office of the Superintendent of Industry and Trade (Colombia), Free Trade Commission of the National Institute for the Defense of Competition and of Intellectual Property (Peru) and Office of the Superintendent for Competition – PROCOMPETENCIA (Venezuela).