The Executive requested a modification of the Competition Law

The first modification proposed reduces from 45 to 40 business days the term for approval of economic concentrations by the National Tribunal for the Defense of Competition (the “Antitrust Tribunal”). After the issuance of the resolution, the Antitrust Tribunal has 2 business days to notify its decision to the Secretary of Technical Coordination of the Minister of Economy and Production, who will have 3 additional business days to request the entire file under certain specific reasons (if “national general interest reasons” are involved and / or if it relates to public utilities, defense, energy or mining activities or the transaction has a high impact on employment or investment). If the file is not requested, the transaction is considered approved. The Secretary of Technical Coordination will have a term of 10 business days to confirm the resolution of the Antitrust Tribunal or modify it.

If the Antitrust Tribunal does not issue its resolution within the 40 business day term mentioned above, the transaction shall be considered as tacitly approved by the Antitrust Tribunal; however, the parties involved will have to request the Antitrust Tribunal to communicate the tacit approval to the Secretary of Technical Coordination. If the Secretary of Technical Coordination does not request the file or issues a resolution within the terms mentioned above (3 days to request the file and 10 business days to issue a Resolution), the transaction shall be considered as tacitly approved and shall have definitive administrative effects vis-à-vis third parties. Based on this scheme the concept of tacit approval has also disappeared because the involved parties have to request the Antitrust Tribunal to send a specific notice to the Secretary of Technical Coordination.

The Amending Bill also states that the Antitrust Tribunal is created as an independent entity within the area of the Ministry of Economy. The members of the Antitrust Tribunal will be appointed by the Executive after a public contest of general records and opposition before a special jury. However, once it becomes operative, the first composition of the Antitrust Tribunal will be formed by the current members of the National Commission for the Defense of Competition and 2 additional members (one lawyer and one economist) to be appointed directly by the Executive. After completion, the members shall decide at random which appointments will be renewed after two and four years and which will remain in office for the entire term.

The members of the Antitrust Tribunal shall be in office for a total term of six years. They will be partially renewed every two years and they may be reelected by the proceedings established in the previous paragraph. By the end of the second year, two members will be renewed; two more by the end of the fourth year, and at the end of the sixth year the last three members will be renewed. Members of the Tribunal may only be removed after a decision by a special jury.

Although it is not possible to assess when this Amending Bill will be considered by both Chambers, it is foreseen that its approval may come soon. The Amending Bill modifies material aspects of the Competition Law such as the veto right that the Minister of Economy and Production will have over certain transactions. Additionally, the Amending Bill creates the Antitrust Tribunal and appoints its members.