Fear of Antitrust law for fueling seizures

The Venezuelan Confederation of Industries (Conindustria) is afraid that the antitrust bill tries to clear the way for seizures.

"It will turned into another component of the siege laid to domestic companies, as its articles just give the State more reasons to continue expropriating productive units," the association commented in a press release in reference to the document awaiting discussion at the National Assembly (AN).

The text explains that articles 5 and 41 of the draft law will give priority to production, delivery, trade of essential goods and services. These, together with the "means of production of strategic significance" are declared in the public and social interest.

"The Executive Office may expropriate the assets of any persons engaged in banned practices. Further, it may conduct temporary occupation and confiscation during the expropriation process (...) This facilitates the action of expropriation undertaken by the government against productive enterprises in the country."

Conindustria also noted that, rather than the economic model enshrined in the Constitution, the draft law follows the guidelines of the First Socialist Plan.

"The government wants to endorse new regulations in this area to include the ideological component of the Socialist Plan. This is mirrored in the preamble, where some terms are used, such as transnational capital, imperialist hubs and US imperialism."

Some criticism also came from the Center of Dissemination of Economic Knowledge for Freedom (Cedice).

They assert that in the standards of economic and competition regulation, monopolies are not subject to prohibition. Prohibition comes when they abuse of a predominance position.