COMPETITION LAW AND UNFAIR COMPETITION

FAIR COMPETITION MUST BE REGULATED BECAUSE COMPETITION IS NECESSARY, EXCEPT WHEN IT IS UNFAIR

Competition between companies is beneficial to consumers, since by competing, companies improve the quality of their products, improve their services or lower prices. Controlling practices that restrict such competition is the task of competition law (agreements between companies that may distort competition, abusive conduct or mergers).

However, although competition between companies is beneficial, it should not be understood that 'anything goes' when it comes to beating a competitor. The Unfair Competition Law prohibits acts that demonstrate behaviour contrary to the requirements of good faith. The imitation of others' services, the violation of trade secrets or the inducement to breach contracts, among others, are practices that must be suppressed.

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