Reform of the merger law in Peru

Abstract

Merger agreements in the market can undoubtedly lead to a dominant position, creating inefficiencies. Regulatory agencies have thus established procedures and rules for proper regulation when companies seek to merge. In Peru, such a law was previously limited to the electric market. However, the recent approval of a new merger law applicable to all sectors has changed the procedure and technique used by the competition agency. This paper analyzes the procedure of merger agreements in the electric market under the previous merger law and contrasts its outcome with the new law. Additionally, a comparison with the procedure established by the Federal Trade Commission (FTC) will be made to assess the strengths and weaknesses of Peru's new regulatory framework for merger control.