Guatemalan Congress has approved the 32-2024 Decree, which refers to a Competition Law. Therefore, this reform aims to strengthen transparency and equity on markets in Guatemala, just like providing a dynamism to benefit consumers and producers. So, on this way are promoted next objectives:
- Market openness: Encouraging the participation of multiple suppliers and buyers to prevent monopolistic structures.
- Monopoly prevention: Ensuring no entity concentrates market power to the extent of affecting prices and quality.
- Consumer protection: Expanding the availability of fair options at reasonable prices.
- Transparent competition: Establishing equitable conditions to reduce disadvantages among consumers or suppliers.
This Competition Law includes two clue prohibitions for reaching intentions. The first one is not reducing prices below production costs with the aim of removing competitors or making the impossible to be introduced in the market. The second one does not want an imposition of discriminatory conditions which generate unfair disadvantages in equivalent transactions.
For this reason, non-compliance causes sanctions that can reach 200.000 daily non-agricultural minimum wages (13,58€ is the daily minimum was on this category), although fines may be imposed depending on the severity, as duration and recurrence. Additionally, the law penalizes false claims as a control mechanism to prevent abuse.
In conclusion, Guatemalan institutions are evaluating which supervisor entity to create. They have proposed a Superintendence of Competition, which promotes free competition, sanctions on anti-competitive practices and ensures market transparency. Another option is Comission of Competition: linked to MINECO, it has a technic and functional autonomy, imposes fines and can take administrative actions over them; it would be a 3-member structure –chosen by president, Congress and Monetary Boards.
Adhering to tax regulations is crucial for your company’s growth in a new country. Relying on a trusted outsourcing provider in Guatemala can simplify managing these obligations. Auxadi is here to be that partner, offering support in Guatemala and over 50 other countries to assist with your international expansion. Contact us.
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All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.