The Superintendency of Market Power Control Resumes Economic Concentration Operations and Proposes an Abbreviated Procedure

The Superintendency of Market Power Control resumes its operations of economic concentration to contribute to the productive reactivation of the country.

In order to contribute to the economic and productive revival of the country, on April 20, 2020, the Superintendency of Market Power Control (in Spanish “SCPM”) issued Resolutions SCPM-DS-2020-18 and SCPM-DS-2020 -19 through which, among other things, resolved the following:

  1. Lifting of Suspension of Terms and Deadlines:

    • Lift the suspension of terms and deadlines ordered in Resolution SCPM-DS-2020-14 of March 16, 2020, only for economic concentration notification procedures in which the SCPM already has the information necessary to issue a criteria. In this sense, the National Intendance of Economic Concentrations will notify until April 23, 2020 all companies whose processes are within the indicated conditions.

    • Modify Resolution SCPM-DS-2020-15 of March 31, 2020, whereby the 8-day period for operators to submit the notification of economic concentration was suspended.

  2. Electronic Processing:

    • Allow electronic processing of economic concentration operations that must be notified on a mandatory basis for prior authorization and that meet at least one of the following criteria:

      • That the SCPM has sufficient information on the affected market, updated to the years 2018 and / or 2019, to define: relevant market, competing economic operators and participation quotas; or,
      • That it is an operation of economic concentration that can benefit from the abbreviated administrative procedure of prior authorization.

  3. Short Notice Procedure:

    • Establish an abbreviated procedure for those compulsory notification economic concentration operations that would not potentially generate harmful effects on competition and that comply with the criteria established by the Superintendency in said resolution, in order to optimize the authorization process for those operations. For this purpose, the maximum investigation and resolution time will be 25 days.

    • On the other hand, the SCPM, in the aforementioned resolution, also proceeded to reform the regular procedure for authorization of economic concentration operations with mandatory notification.

Find below the full text of the resolutions issued by the Superintendency of Market Power Control:

Disclaimer: This document is informative and does not, and is not intended to, constitute legal advice.