In the framework of an investigation into alleged anticompetitive conducts initiated in mid-January of this year, the National Commission for the Defence of Competition (CNDC, for its acronym in Spanish) ordered to charge a group of prepaid medicine companies, the confederation that groups them together and the person who presided over them, for having found elements that constitute a collusive agreement.
The companies investigated by the CNDC and charged are Galeno Argentina S.A., Hospital Británico de Buenos Aires Asociación Civil, Hospital Alemán Asociación Civil, Medifé Asociación Civil, Swiss Medical S.A., Omint S.A. de Servicios, OSDE Organización de Servicios Directos Empresarios, as well as the association Unión Argentina de Salud (UAS); and Mr. Claudio Fernando Belocopitt, current president of the company Swiss Medical S.A. and then president of the UAS.
This investigation, which is currently underway, was opened following a complaint to the CNDC for cartelisation under the terms of Section 2, paragraph a) of Act No. 27.442 on the Defence of Competition (LDC, for its acronym in Spanish), due to a coordinated increase in the values of the fees of the medical-assistance health plans of the companies listed, between the months of December 2023 and April 2024.
In April of this year, the Secretariat of Industry and Commerce, together with the CNDC, intervened by issuing a preventive measure that obliged the companies in the sector to return the prices of the health plans to those in force in December 2023 and to cease any type of exchange of information, whether in the framework of the UAS meetings or in any other sphere, involving prices, services to be provided, costs and any other commercial information.
According to the deadlines set by the LDC, from the date of notification, the accused legal entities and individuals have 20 working days to present their defence and offer evidence to disprove the imputed conduct.
The CNDC will set a term, which may not exceed 90 working days ―and that may be extended for up to 90 more working days if deemed necessary― for the evidence to be produced. At the end of this period, the accused parties shall have six (6) working days to present their arguments.
If the evidence produced is sufficient to disprove the accusation, the CNDC may order the proceedings to be closed. Otherwise, the Secretariat of Industry and Commerce, together with the CNDC, may fine the accused up to 30% of their turnover or up to twice the amount of the illicit benefit obtained.
The CNDC recalls that agreements between competitors or concerted practices, commonly known as cartels, constitute a serious infringement of competition law, which can lead to fines of up to 30% of the turnover of the offending companies in Argentina.
In particular, Session 2 of the LDC classifies hard core cartels as practices that are absolutely restrictive of competition, which consist of an agreement between two or more competitors to fix prices, restrict supply, share the market or coordinate bids in tenders, or auctions.
It is also recalled that both human and legal persons that have incurred or are incurring in a concerted conduct typified in Section 2 of the LDC, may apply to the Leniency Programme.
The Leniency Programme allows the applicant to benefit from an exemption from or a reduction of the sanction. The benefit requires the applicant's continued cooperation with the CNDC by providing information and evidence that enables the agency to prove the existence and operation of the cartel.
For enquiries about the availability of markers or other general enquiries about the Leniency Programme, please write to the following email address: [email protected].
To learn more about what constitutes an anticompetitive conduct, please see the following infographic.
A best practices guide for chambers and business associations and professional associations is also available at the following link.
Anticompetitive conducts can be reported virtually through the Trámites a Distancia (TaD) system, as described here.