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Diego Perez-Ordonez, Luis Marin Tobar, Jul 24, 2015
As of October 2011, Ecuador became a jurisdiction where merger control review and prior authorization is required prior to a change in control. The Organic Law for the Regulation and Control of Market Power (“the Law”) was enacted in October 2011, implementing the first domestic competition regime in the country. The Law also created the Superintendency of Market Power Control (“Superintendency” or “Authority”) as its governing administrative authority in charge of the application of the Law, and a separate regulatory body, the Regulation Board, in charge of issuing governing regulations, sector-wide recommendations, and economic thresholds for mergers, among other powers.
Merger notifications are made with the Intendency for Concentration Control (“Intendancy”), an investigative authority who must issue a recommendation report for resolution by the First Instance Resolution Commission (“Commission”). The Merger Control Intendancy is solely vested with the powers of investigating notified and non-notified transactions, and for issuing its recommendation report to the Commission. This report contains an economic analysis of both the competitive landscape as well as the transaction’s potential impact on the competitive structure, and a final recommendation as to whether to clear the transaction, issue a conditional clearance subject to…