The Congress of the Republic of Guatemala approved reforms to the Competition Law, thereby eliminating doubts that existed regarding the possibility of its practical application.
I- Pending institutional framework
Now, the next challenge lies in institutional development. The appointment of the first Superintendent of Competition is expected, who will be responsible for applying and enforcing the regulations. His role will be decisive not only in administrative management, but also in the configuration of initial interpretative criteria, which will set the tone for the consolidation of coherent and predictable administrative practice. There are rumors of political interference in this appointment to ensure the election of a particular candidate, so all eyes are on the Board to ensure an independent appointment.
Similarly, it is essential that the respective regulations be drafted. These instruments must translate the law into clear procedures, define deadlines, investigation mechanisms, procedural stages, and sanction parameters. The technical quality of these regulations will be essential for Superintendency to act effectively and, at the same time, in strict compliance with the law.
II- Effective date
December 9, 2026, has been set as the date on which the Superintendency of Competition will begin full operations. This transition period gives the Superintendency’s Board of Directors the opportunity to carefully design the organizational structure, internal procedures, and technical definitions to be applied, allowing economic agents sufficient time to adjust their practices in accordance with the new standards.
It should be noted that Guatemalan legislation did not previously have a competition authority and criminally punished conduct considered monopolistic or tending toward monopoly within its criminal offenses and damage lawsuits. It is therefore vital to have clarity on the new punishable conduct to adjust the behavior of economic agents.
III- Reformed points
In particular, the reforms were:
- The functioning of the Board of Directors of the Superintendency of Competition will be regulated in the Superintendency’s Regulations.
- The chairmanship of the Board of Directors of the Superintendency of Competition will be held for two years, starting with the Director appointed by the President of the Republic, then the one appointed by the Congress of the Republic, and finally the one appointed by the Monetary Board. If there is a conflict, the chairmanship will be held in alphabetical order.
- The Board of Directors of the Superintendency of Competition shall make decisions by simple majority, and the quorum for its meetings shall be three regular members or their alternates.