Antitrust Law in Panama

• Published date: 21 February 2022
• Author: Jaime Castillo
• Law Firm: Blogs Alemán, Cordero, Galindo & Lee

The Feasibility

Consultation in

Panama’s

Antitrust Law

Author: Jaime Castillo

In Panama, the legislation on Antitrust was introduced with

Law 29 of February 1, 1996, representing a significant

change in business-related matters since, until that date,

there was no regulation on monopolistic practices.

After more than 20 years of that historical milestone, there

is now great progress on the matter and on the culture of

doing business, with a significant knowledge at a business

level of the current regulations contained in Law 45 of

October 31, 2007 "Which dictates rules on consumer

protection and defense of competition" (Antitrust Law).

However, aspects such as Monopolistic Practices and the

consequences or penalties for incurring in these, are still

considered something complex, as I have been able to

observe in my professional practice and when providing

training to companies about this topic.

Although the current regulations on Antitrust Law cover

what are considered Absolute or Relative Monopolistic

Practices, in practice the application and interpretation of

such regulations in the face of specific acts, facts or

situations may generate doubts as to whether or not such

acts, facts or situations are considered a Monopolistic

Practice.

Precisely due to the above, the Antitrust Law establishes in

its article 20 the legal concept of the Feasibility

Consultation, which allows the economic agent who

wishes to establish whether or not a certain act, contract

or practice that it intends to carry out constitutes an

absolute or relative monopolistic practice prohibited by

Law, may make a written inquiry to the Administrator of

the National Authority for Consumer Protection and

Defense of Competition (Acodeco).

The Feasibility Consultation is a valuable mechanism that

allows economic agents to obtain a pronouncement from

Acodeco on whether or not a practice or contract, which

is intended to be carried out, would violate the Antitrust

Law for being considered a Monopolistic Practice.

In this way, the economic agent has prior legal certainty

about the act or conduct it intends to carry out and thus

avoids the risk of it being interpreted or considered to be

illegal after it has been carried out.

The Feasibility Consultation is a valuable mechanism

that allows economic agents to obtain from

Acodeco a pronouncement on whether or not a

practice or contract, which is intended to be carried

out, would violate the Antitrust Law for being

considered a Monopolistic Practice.