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The competition authority is the National Commission for the Defence of Competition.
Restrictive agreements and practices
All practices, acts and agreements between national or foreign economic agents, either tacit or expressly written or verbal, which have the purpose, or either produce or may produce the effect, of imposing unjustified barriers in the market are prohibited (Competition Law).
Additionally, conduct which constitutes the abuse of a dominant position by national or foreign economic agents in the market ,and all corporate and commercial acts and behaviour that are contrary to good faith and commercial ethics which have as their objective an illegitimate change in consumer demand, are prohibited (Competition Law).
Violations of the Competition Law are sanctioned with monetary fines issued by the National Commission for the Defence of Competition, without prejudice to civil and criminal penalties available through ordinary proceedings. Individuals found to have participated directly, as accomplices or abetters of anti-competitive practices, personally or as executives, or acting in representation of legal persons, are sanctioned under the Criminal Procedure Code.
The Constitution of the Dominican Republic prohibits monopolies, except when in favor of the Dominican State. The Competition Law regulates the abuse of a dominant position in the market and other practices that hinder effective competition between economic agents.
The possession of a dominant position in the market by itself does not constitute a violation. However, there are regulations regarding monopolies in certain industries such as:
- The monetary and financial sectors.
Are mergers and acquisitions subject to merger control?
Mergers and acquisitions are not subject to merger control. However, they must be notified to the Chamber of Commerce and Production and DGII. If there are reasonable grounds for subjecting the merger to neutral tax treatment, a written approval must be obtained by DGII prior to its effective date.
However, all practices, acts and agreements between economic agents which have the objective, or either produce or may produce the effect, of imposing unjustified barriers in a local market, as well as the abuse of a dominant position in that market, are prohibited by the Competition Law.