The Superintendence of Industry and Commerce (SIC), Colombia’s competition watchdog, has rejected settlement offers from Mastercard, contractors involved with the National Protection Unit (UNP), and Corabastos, all of whom are under investigation for alleged anticompetitive conduct. The agency deemed the proposals insufficient to warrant early termination of the sanctioning proceedings.
According to the SIC, the guarantees offered by the investigated parties failed to demonstrate a genuine intention to suspend or alter the behaviors under scrutiny. The agency emphasized that any commitments made in the context of an investigation must go beyond mere compliance with the law and must be capable of preventing future violations through structural and verifiable changes.
Mastercard’s Proposal Found Inadequate
In the case of Mastercard, the SIC ruled that the company’s offer did not meet the necessary criteria to be considered a viable settlement mechanism. Specifically, the proposed guarantees lacked structural reforms and did not contain credible commitments to eliminate or modify the investigated conduct. Moreover, the SIC noted that accepting such offers could paradoxically entrench the limitations on competition that the investigation seeks to remedy.
UNP Contractors: Commitments Deemed Superficial
Similarly, the settlement offers submitted by certain bidders involved in UNP procurement processes were rejected for failing to meet the agency’s standards. These included commitments such as market withdrawal of certain companies, divestment of armored vehicles, facilitation of market entry for new bidders, and participation in public tenders in which they did not usually compete.
Despite the variety of these proposed measures, the SIC determined that they did not present sufficient guarantees of behavioral change. The authority also pointed out that the proposed actions lacked the structural impact necessary to ensure fair competition in the long term.
Corabastos’ Strategic Role Amplifies Scrutiny
Corabastos, a central player in Colombia’s agricultural supply chain, also saw its proposed guarantees dismissed. The SIC highlighted the organization’s essential role in the nationwide distribution of agricultural goods and the direct impact its operations have on consumers. According to the agency, the offered commitments failed to eliminate the incentives that led to the alleged anticompetitive behavior and did not provide a structural alternative equivalent to the deterrent effect of a formal sanction.
A Clear Message on Competition Enforcement
The SIC’s decisions underline its firm stance on ensuring that any out-of-court settlements or guarantees must serve the public interest by effectively restoring competitive conditions. Proposals that merely reiterate existing legal obligations or lack structural depth will not be accepted as substitutes for thorough enforcement.
The investigations against Mastercard, the UNP contractors, and Corabastos will therefore continue through the ordinary sanctioning route, with the possibility of penalties if violations are ultimately confirmed.
