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Free Competition INSTITUTO NACIONAL DE DEFENSA DE LA COMPETENCIA Y DE LA PROTECCIÓN DE LA PROPIEDAD INTELECTUAL Analysis of Indecopi’s Functions in Light of the Ruling of its Dispute Settlement Bodies Free Competition INDECOPI’S TWENTIETH ANNIVERSARY COLLECTION Copyright © 2013 National Institute for Defense of Competition and Protection of Intellectual Property (Indecopi) Calle de la Prosa 104 – San Borja, Lima, Peru. Telephone: (51-1) 224-7800 E-mail: [email protected] Website: www.indecopi.gob.pe AUTHOR : Eduardo Quintana DESIGN AND LAYOUT : Q & P Impresores SRL www.qypimpresores.com CARE AND REVIEW OF THE EDITION : Hebert Tassano Velaochaga y Giovana Hurtado Magán PRINTING : Q & P Impresores SRL Domicilio Legal: Av. Ignacio Merino 1546 -Lince TRANSLATION BY : Business Communications Consulting S.A.C. Akemi Hori Printed in Lima, Peru June 2013 – First Edition Printing: 100 copies Registered with the National Library of Peru – Nº 2013-08916 ISBN: 978-9972-664-41-0 The information contained in this document may be partially reproduced in part, prior written notice to INDECOPI with credit given to the author and/or source. Indecopi uses standard masculine language to refer to both men and women in its texts. This use seeks to provide a standardized, easy-to-read, simple document. In no way does this reduce the institution’s commitment to gender equality. Ideas and opinions expressed in this publication are entirely those of the author and do not necessarily reflect the views of Indecopi. 2 Free Competition INSTITUTO NACIONAL DE DEFENSA DE LA COMPETENCIA Y DE LA PROTECCIÓN DE LA PROPIEDAD INTELECTUAL Board of Directors Hebert Eduardo Tassano Velaochaga President María Elena Juscamaita Arangüena Advisor Juan Manuel Echevarría Arellano Advisor Oswaldo Del Carmen Hundskopf Exebio Advisor Malka Maya Albarracín Advisor Advisory Board Elena Conterno Martinelli Walter Albán Peralta Richard Webb Duarte Catalina Chepa Guzmán Melgar José Ricardo Stok Capella Carlos Ramos Núñez General Manager Santiago Dávila Phillipon Director of Indecopi National School Giovana Hurtado Magán Free Competition 3 CONTENTS FOREWORD................ ..................................................................................................... 7 INTRODUCTION....... ..................................................................................................... 9 OBJECTIVES.................. ................................................................................................. 11 CHAPTER 1 THEORETICAL FRAMEWORK: AREAS OF COMPETITION LAW .......................... 13 1.1. Controlling Behaviors ............................................................................................ 17 1.1.1. Abuse of dominant Position or Monopoly................................................... 18 1.1.2. Collusion Practices ...................................................................................... 33 1.2. Controlling Structures ........................................................................................... 47 CHAPTER 2 LEGISLATIVE DEVELOPMENT IN PERU ................................................................... 49 2.1. Legislative Decree N° 701 ..................................................................................... 51 2.1.1. Purpose ..................................................................................................... 54 2.1.2. Subjective Scope .......................................................................................... 54 2.1.3. Objective Scope ........................................................................................... 54 a. Acts of Abuse of dominant position ....................................................... 55 b. Restrictive Practices on the Competition ............................................... 56 2.1.4. Procedure ..................................................................................................... 57 2.1.5. Penalty Regime ............................................................................................ 57 2.1.6. Other relevant aspects ................................................................................. 57 2.2. Legislative Decree N° 1034 ................................................................................... 58 2.2.1. Purpose ..................................................................................................... 58 2.2.2. Subjective Scope .......................................................................................... 58 2.2.3. Objective Scope ........................................................................................... 59 a. Acts of Abuse of Dominant Position ....................................................... 59 b. Horizontal Cartel Behaviors ................................................................... 61 Free Competition 5 c. Vertical Cartel Behaviors ........................................................................ 62 2.2.4. Criteria to analyze prohibited behaviors .................................................... 63 2.2.5. Proceedings .................................................................................................. 65 2.2.6. Sanctions Regime ........................................................................................ 65 2.2.7. Corrective Measures .................................................................................... 66 2.2.8. Other relevant aspects ................................................................................. 66 2.3. Indecopi’s decision making bodies ....................................................................... 69 2.3.1. First Instance ................................................................................................ 69 2.3.2. Second Instance ........................................................................................... 69 2.3.3. Instructive Body ........................................................................................... 69 CHAPTER 3 JURISPRUDENCE AND INDECOPI CONTRIBUTIONS ........................................... 71 3.1. Abuse of dominant Position ................................................................................... 72 3.1.1 Unjustified Refusal to deal ........................................................................... 73 3.1.2 Discrimination ............................................................................................... 89 3.1.3 Abuse of Legal Proceedings ......................................................................... 98 3.1.4. Behaviors of Exploitative Effect .................................................................. 110 3.1.5 Impact and Contribution of Indecopi .......................................................... 118 3.2. Horizontal Cartel Behaviors .................................................................................. 124 3.2.1 Price fixing .................................................................................................... 125 3.2.2 Market Sharing ............................................................................................. 173 3.2.3 Indecopi’s Impact and Contribution ............................................................ 192 3.3. Vertical Cartel Behaviors (exclusivities) ............................................................... 199 3.3.1 Indecopi’s Pronouncement ........................................................................... 199 3.3.2 Indecopi’s Impact and Contributions .......................................................... 210 CONCLUSIONS................... ........................................................................................... 213 APPENDIX................... .................................................................................................... 217 BIBLIOGRAPHY........... ................................................................................................... 227 ACRONYMS LIST...... ... .................................................................................................. 237 6 Free Competition FOREWORD Indecopi’s contribution to the economic growth of Peru is rooted in its institutionalism, which serves as the foundations of, among other aspects, the technical decisions issued since its establishment. In this regard and in commemoration of the 20th anniversary of the institution, we believe it is important to share the essence of our job, through a number of publications describing the duties carried out by INDECOPI through each one of its decision-making bodies. Our purpose is to present, in an educational way, the work we have performed during these 20 years to fulfill our mandate aimed at consumer protection, intellectual property, defense of free and fair competition, and developing quality infrastructure in our country. These books have been articulated following educational guidelines and techniques and the contents of each volume of the collection have been structured in a standard manner. Thus, we start with a theoretical framework which underpins the function entrusted to INDECOPI, developing fundamental concepts for each protected institution. Next, we describe the legislative and jurisprudential milestones achieved during the Institute’s evolutionary process. Finally, as could be expected, we have furthermore set aside space to reflect on the lessons learned and to think into the future by moving towards a more proactive Indecopi, anticipating and providing the answers that our society and market need. At this moment,
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