2024-02-17 10:10:12
The entity’s ruling established that a series of measures must be adopted to ensure transparency in these links, “which must be framed in an area of objectivity and non-discrimination.”
The Court for the Defense of Free Competition (TDLC) referred to risks to free competition when delivering the resolution in which called on shopping centers to establish transparent and balanced contractual relationships with retailers.
In this way, the entity responded to the request in this regard presented by the Retail Brands Guild Association, which denounced a series of behaviors that he considered contrary to free competition.
According to the analysis of the resolution carried out by the retailers, the ruling “ratified the existence of risks to free competition, derived from the market power of shopping centers and various difficulties that tenants have within the framework of asymmetric contractual relationships“.
Transparency in the relationships between malls and retailers
In its ruling, the court established that a series of measures must be adopted to ensure transparency in these relationships, “which must be framed in an area of objectivity and non-discrimination“.
Regarding the so-called “property crossover“, the TDLC concluded that “The potential future risk requires taking certain behavioral safeguards regarding property relationships.. And, in particular, on those of a vertical nature between operators of shopping centers and stores that could compete with independent businesses.”
Among other issues that the entity resolved, it determined that the malls They may not require more information than what is strictly necessary to estimate the monthly rental income..
Furthermore, it established that charges as common expenses ofThey must be clearly defined according to known variables and subject to periodic reporting to the tenants.
It also requires establishing a dispute resolution mechanism that guarantees the speed and fairness of resolutions.
“We invite the shopping centers to talk with the tenants to agree on a business relationship based on the conclusions of the statement (…) to build a market with symmetrical and balanced relationships, within the framework of healthy and free competition“said the president of the Retail Brands Association, Esteban Halcategaray.