2024-09-23 03:01:32
The Constitutional Court of Colombia is considering two unconstitutionality claims against the first and second paragraphs of article 28 of Law 1816 of 2016. This law allows departments to suspend the introduction of domestic or foreign liquor into their territories to protect local production. The plaintiffs argue that these provisions violate free competition, established in article 333 of the Constitution, and affect the right of consumers to choose freely, according to article 78 of the Constitution.
The complainants argue that the measure excessively limits competition, favouring local producers to the detriment of other market players. They claim that these restrictions may be used as an unjustified barrier to protect the departments’ monopoly, affecting the diversity of available products and the competitiveness of the liquor market.
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In Colombia, the distilled spirits monopoly is a key source of income for the departments, which use the profits mainly to finance sectors such as health and education. Law 1816 established that this monopoly can be exercised both through direct production and through the introduction of foreign products, but the departments have the power to suspend permits if they perceive a threat to their local production.
The Court has called for a public hearing on October 7, 2024, to discuss the constitutionality of the rule and analyze three central aspects: the functioning of the rent-seeking monopoly, the proportionality of the measure, and its impact on the liquor market. Government officials, governors, and economic law experts will participate to offer a more complete view of the consequences of this provision.
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The purpose of the hearing will not be to issue an immediate ruling, but rather to gather information that will allow the Court to make an informed decision. Whatever is decided could redefine the structure of the liquor monopoly in Colombia and its implications for both the departments and consumers and market players.