User:Delphickuow/New antitrust law introduced to Ecuador

From Wikinews, the free news source you can write!
Jump to navigation Jump to search

Wednesday, October 12, 2011

Rafael Correa, president of Ecuador.
Image: Presidency of the Nation of Argentina.

Ecuador's president Rafael Correa established a new antitrust law yesterday which specifies that news media owners and bankers cannot hold significant financial stakes in other industries. The law will essentially prevent any company gaining a monopoly in another industry.

It is a move which Correa says will bring "a change in the country's power and property structure."

The law has been heavily criticised by Ecuador's business community who say the law only gives Correa more power by making his government the referee of monopolistic behaviour.

Pablo Davila, president of the Ecuadorian Business Committee says the law gives the executive branch "excessive power to control and sanction" private enterprises.

He was particularly scathing of the fact that the law demands media owners and bankers to divest holdings in other industries saying "from our point of view, doesn't benefit competition but rather hurts competition."

The two sectors have until July 2012 to divest and are able to have only six percent of their assets in other industries or face fines of up to twelve percent of their investment.