The CNDC requires stores, malls and banks to continue with joint discounts

On November 19, 2009, the National Antitrust Commission (“CNDC”) issued an injunction through Resolution 131/09, in order to compel stores, malls and banks to continue with their joint discounts and promotions that were introduced as a remedy to mitigate the impact of the 2008 financial crisis on domestic demand.

The background of the measure is an investigation started by the CNDC from the publication of a newspaper article were it stated that several executives of the mayor local clothing companies gathered in a meeting where they agreed to stop with the discounts starting on December 1, 2009, in order to take advantage of the significant rise in sales that takes place during Christmas and New Year.

The Resolution considers that the alleged collusion is prima facie an infringement to the Antitrust Law, with aptitude to damage the general economic interest.

The injunction was notified to several stores, malls and banks to temporarily prevent them from canceling the discounts until the investigation is completed.

For further information on this topic please contact Julián Peña