Competition Law in Tourism

TOURISM AND COMPETITION 617 relationship, in order to restore the current unbalance between providers and consumers, ensuring access to information and preventing abusive practices due to differences between the parties regarding economic capacity and bargaining power. Some definitions, such as the one in the Uruguayan law, state how: “This is a public order law whose purpose is to promote the well-being of current and future consumers and users through promotion and defence of competition, promotion of economic efficiency, and freedom and equality of access of companies and products to the markets”. This means that its immediate purpose conveys a subsequent purpose: on the one hand, that all natural and legal persons, public and private, national and foreign, performing economic activities whether for profit or not, within a territory, will be included, as well as those subjects carrying out economic activities abroad, as long as these activities have an effect on said territory; and on the other hand, that the State will control the behaviour of the players, that is, a structural control. In this regard, legislations stipulate different forbidden practices, such as the following “All markets will be governed by the rules and principles of free competition, except for the limitations established by law on the grounds of the general interest”. It is expressly forbidden: • To directly or indirectly agree or enforce purchase or selling prices, or other dealing conditions, in an abusive manner. • “It is prohibited any abuse of a dominant position, as well as any practice, behaviour or recommendation, be it individually or concerted, with the effect of or intended to, restrict, limit, hamper, distort or prevent current or future competition in the relevant market.”. • Uruguayan legislation provides (Law 18.159). • Dominant position – Art. 6: “one or several agents have a dominant position in the market when they may substantially affect its relevant variables, independently of the behaviour of its competitors, buyers, or suppliers.”. • Abuse of a dominant position – Art. 6: “It is considered that there is an abuse of a dominant position whenever the agent(s) being in such position act improperly in order to obtain advantages or cause prejudices to other parties, which would not have been possible if such dominant position did not exist” (Article 6).

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