On August 20, 2025, the National Assembly approved the report issued by the Economic Development Committee, which addressed the Constitutional Court\u2019s opinion on the Draft Organic Law on Regulation against Unfair Competition.<\/p>\n\n\n\n
With this decision, the legal text is now ready for enactment, consolidating a new autonomous legal framework to prevent and sanction unfair market practices, complementing the existing Organic Law on Regulation and Control of Market Power.<\/p>\n\n\n\n
1. Why is this Draft Unfair Competition Law relevant for your company?<\/strong><\/p>\n\n\n\n 1.1. Universal scope and cross-cutting effect: <\/strong>The new law applies to all companies and economic actors, regardless of their size or sector. Any organization with operations or effects in the Ecuadorian market must review its practices in light of this new regulatory framework.<\/p>\n\n\n\n 1.2.<\/strong> Conducts classified as unfair:<\/strong> Prohibited behaviors include acts of deception, confusion, imitation, denigration, comparison, pyramid sales schemes, exploitation of another\u2019s reputation, aggressive practices, unlawful advertising, among others.<\/p>\n\n\n\n 1.3. Dual liability regime: <\/strong>The law distinguishes between:<\/p>\n\n\n\n 2. Types of unfair practices subject to sanctions<\/strong><\/p>\n\n\n\n The regulation prohibits a broad range of practices which, by distorting consumers\u2019 economic behavior or unfairly affecting other market operators, are deemed unfair. Among these practices are the following:<\/p>\n\n\n\n The law presumes the unfairness of these practices and empowers the competent authority to impose sanctions, order the immediate correction of such practices, and safeguard the rights of consumers and economic operators. The central objective is to ensure a fair and transparent competitive environment, aligned with the principles of good faith, commercial loyalty, and the protection of the general economic interest.<\/p>\n\n\n\n 3. Strategic assessment: a call for preventive action<\/strong><\/p>\n\n\n\n Although the bill was subject to a presidential partial veto and constitutional review, the National Assembly accepted the President\u2019s objections, maintaining the pillars of the sanctioning regime and the dual liability framework. With final approval, regulatory expectations are now defined, and companies must anticipate immediate compliance once the law is published in the Official Gazette.<\/p>\n\n\n\n 4. The SCE as a new enforcement authority<\/strong><\/p>\n\n\n\n The Superintendence of Economic Competition emerges as the technical authority responsible for enforcing the new regime in aggravated cases. Its powers include the imposition of sanctions, preventive and corrective measures, as well as the conduct of administrative proceedings.<\/p>\n\n\n\n 5. What should companies do?<\/strong><\/p>\n\n\n\n Although the law has already been approved by the Plenary and is only pending enactment, its content already sets a clear regulatory trend. Companies must prepare for a more demanding regulatory environment, making it essential to:<\/p>\n\n\n\n For more information, please contact us at the following email addresses:<\/p>\n\n\n\n Competition Practice:<\/strong><\/p>\n\n\n\n Mar\u00eda Rosa Fabara Vera: mrfabara@bustamantefabara.com<\/a><\/p>\n\n\n\n Jos\u00e9 Rafael Bustamante C.: jrbc@bustamantefabara.com<\/a><\/p>\n\n\n\n Diego Ram\u00edrez Mesec: dramirez@bustamantefabara.com<\/a><\/p>\n\n\n\n Daniel Castelo: dcastelo@bustamantefabara.com<\/a><\/p>\n\n\n\n Kirina Gonz\u00e1lez: kirinag@bustamantefabara.com<\/a><\/p>\n\n\n\n\n
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