Ecuador merger control (2019)
Produced in partnership with Pérez Bustamante & Ponce
Ecuador merger control (2019)

The following Competition guidance note Produced in partnership with Pérez Bustamante & Ponce provides comprehensive and up to date legal information covering:

  • Ecuador merger control (2019)
  • 1. Have there been any recent developments regarding the Ecuadorian merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Ecuador?
  • 2. In terms of the recently introduced merger control regime, is the control test the same as the EU concept of ‘decisive influence’? If not, how does it differ and what is the position in relation to 'minority shareholdings'?
  • 3. Are joint ventures caught by the merger control provisions (including non-structural, cooperative joint ventures)?
  • 4. What are the merger control thresholds and would a purely foreign-to-foreign transaction be caught (commenting on any ‘effects’ doctrine/policy if relevant)?
  • 5. Are there any specific issues parties should be aware of when compiling and calculating the relevant turnover for applying the jurisdictional thresholds?
  • 6. Where the thresholds are met, is notification mandatory and must closing be suspended pending clearance?
  • 7. Is there any discretion to review transactions that fall below the notification thresholds?
  • 8. Is it possible to close the deal globally prior to local clearance?
  • 9. Is there a deadline for filing a notifiable transaction and what is the timetable thereafter for review by the authority?
  • more

A conversation with Andrés Brown-Pérez and Mario Navarrete-Serrano, associates at Ecuadorian law firm Pérez Bustamante & Ponce, on key issues on merger control in Ecuador.

NOTE–to see whether notification thresholds in Ecuador and throughout the world are met, see Where to Notify.

1. Have there been any recent developments regarding the Ecuadorian merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Ecuador?

The Ecuadorian Congress is currently considering an amendment to the alternative thresholds that trigger the obligation to file a mandatory merger notification. The proposed bill eliminates the turnover threshold and leaves only the market share threshold. The bill is still in the early stages of examination in Congress and is not part of the urgent legislative agenda.

The Ecuadorian merger control regime is relatively new, and the regulator is striving to articulate its theories of harm and the standard for the substantial assessment of mergers under Ecuadorian law. By now, it seems clear that the regulator is willing to condition or prohibit transactions even if the risk of anti-competitive harm falls short of a substantial lessening of competition (ie, the Ecuadorian regulator does not require a finding of dominance). The regulator has intervened even in cases where the risk for competition was marginal, setting the bar for substantive