The privatization of Ecuadorian unfair competition law
The Superintendence of Economic Competition (“SCE“) may only hear cases of “aggravated unfair competition” (Art. 9 LCD), but civil judges hear both types of cases (“simple” and “aggravated” unfair competition – Art. 67 LCD) within a summary proceeding regulated by the General Organic Code of Proceedings.
Although the SCE may impose significant fines (up to 12% of the gross income received by the infringer in the fiscal year prior to the issuance of the sanctioning resolution), in practice, private litigants are likely to prefer the judicial process because of the possibility of claiming damages from their unfair competitors (which is not applicable in the administrative process of the SCE).
Relevant market definition will no longer be required under the LCD.
The concept of unfair competition (simple and aggravated)
Aggravated unfair competition” refers to those conducts that, in addition to affecting competitors or consumers, affect the “economic public order” and may distort the “competition regime”.
In order to file a claim under the heading of “simple unfair competition”, it is sufficient to prove the existence of conduct that “may affect or affects the concrete and particular interests” of competitors or consumers.
Specific conduct of unfair competition
The classic catalog of Art. 27 LORCPM has been essentially maintained in Art. 6 LCD (with some novel additions*): (i) acts of confusion, (ii) acts of deception, (iii) acts of imitation, (iv) acts of denigration, (v) acts of comparison, (vi) exploitation of another’s reputation, (vii) aggressive practices against consumers, (viii) pyramid selling practices*, (ix) acts of discrimination*, (x) abuse of a situation of economic dependence*, (xi) acts of unlawful advertising*, (xii) consumer attrition practices.
Procedural and remedial issues
Those who demonstrate the direct “affectation” of their economic interests (i.e. subjective economic rights) may file before the civil jurisdiction all the actions listed in Art. 67 LCD: (a) declaratory, (b) injunctive relief, (c) removal, (d) rectification, (e) compensation for damages, as well as requesting (f) preventive measures. Those who only prove “legitimate interest” may exercise the previously listed actions, except for the action for damages.
Quito D.M./Guayaquil, September 2025
