On August 29, 2025, the National Assembly approved the Organic Law on Regulation Against Unfair Competition, establishing a specialized legal framework to protect markets, economic operators, and consumers from unfair practices. This law partially repeals the Organic Law on Regulation and Control of Market Power (LORCPM) regarding unfair competition and classifies abuse of economic dependence as an unfair practice.
The regulation establishes a dual control mechanism: administrative, to sanction aggravated practices affecting the public interest, overseen by the Superintendency of Economic Competition (SCE); and judicial, allowing affected operators to file claims for simple or aggravated practices before civil courts, seeking cessation, correction, or compensation.
The law also introduces new sanctionable practices, such as pyramid schemes and covert commercial practices, expanding the catalog to cover previous legal gaps, and includes reversal of the burden of proof in certain cases, requiring the alleged infringer to demonstrate the legality of their conduct.
For companies, this implies greater legal protection against acts of unfair competition, the need to implement compliance programs and internal controls, and enhanced capacity for administrative and judicial defense. Overall, the law strengthens transparency, legal certainty, and market confidence in Ecuador, aligning with international standards and promoting equal opportunities for all economic operators.
Ab. Maria Jose Urbano
