New Law Creates the National Attorney Office for the Defense of Free Competition and Alternative Dispute Resolution
Gustavo-Adolfo Vargas and Ana Victoria Ruiz, lawyers in Nicaragua and experts in Corporate Law, share this article on the creation of the National Attorney Office for the Defense of Free Competition and Alternative Dispute Resolution.
On April 25, 2024, the National Assembly of Nicaragua approved Law No. 1202, published in La Gaceta, Official Gazette No. 75. This law establishes the creation of the National Attorney Office for the Defense of Free Competition and Alternative Dispute Resolution, which will be under the supervision of the Attorney General's Office (PGR).
This new entity integrates the functions of the National Institute for the Promotion of Competition (PROCOMPETENCIA) and the Directorate of Alternative Dispute Resolution (DIRAC). The main objective of the new National Attorney Office is to centralize the defense of free competition and the management of alternative dispute resolution, thereby consolidating the institutions that regulate these essential aspects for the economic and social development of the country.
PROCOMPETENCIA was an entity with legal personality and its own assets, with administrative and budgetary autonomy, responsible for overseeing free competition in the Nicaraguan market. Before the creation of the National Attorney Office, it functioned as an autonomous entity whose highest authority was the Board of Directors. The Board of Directors was formed by a President Director and three proprietary directors, all appointed by the President of the Republic of Nicaragua and ratified by the National Assembly.
The functions of PROCOMPETENCIA's Board of Directors included the implementation of public education programs to promote the culture of competition and the resolution of cases related to the law. The Council also heard and resolved appeals against decisions made by the President of PROCOMPETENCIA and informed the regulators if an anticompetitive practice was due to their regulations. In addition, it proposed amendments to the law, informed and requested the intervention of the Attorney General when necessary, approved PROCOMPETENCIA's organizational structure, regulations and annual budget, and could order technical consultancies. It also requested the appointment of an internal auditor, received detailed daily and monthly reports from the President of PROCOMPETENCIA on actions and administration of resources, and performed other functions conferred by law. All these attributions were reformed by the new Law, through the creation of the Directorate for the Promotion of Competition, which acquired certain functions of the former Board of Directors, within the National Attorney Office. Furthermore, the highest authority is now the National Attorney General.
The DIRAC was created on April 13, 2000, as a specialized unit of the Judicial Branch, under the supervision of the Supreme Court of Justice (CSJ). Its purpose is to provide an institutional and technical framework to facilitate mediation and arbitration as alternative dispute resolution methods, especially related to property. Its main objective was to improve access to justice, particularly for people in vulnerable situations, through mediation services, conciliation, and other methods that would allow disputes to be resolved quickly and confidentially, thus avoiding judicialization and promoting dialogue and negotiation.
Initially, DIRAC had an organizational structure with a general directorate, supported by legal, administrative and outreach advisors. Reporting to the general directorate were a sub-directorate and offices in different districts, as well as departments of civil and criminal mediation, an administrative delegation, a department of attention to private centers and external cooperation, information technology and training. However, this model was not fully developed in practice and operated with a more simplified structure. Starting in 2016, DIRAC underwent an organizational restructuring that resulted in a new organizational chart. The general directorate became supported by legal counsel and communication, with the sub-directorate and several national coordinations (by subject) reporting to it.
The National Attorney Office will be headed by the National Attorney Office, who will be appointed by the Attorney General of the Republic and will have its functions covered under the Organic Law of the Attorney General's Office. Likewise, the National Attorney will have several key responsibilities such as legally representing PROCOMPETENCIA, resolving appeals against decisions of the Director of PROCOMPETENCIA and informing the regulators about anti-competitive practices derived from their regulations so that they adopt corrective measures, among others. The National Attorney is specifically in charge of the areas of defense of free competition and alternative dispute resolution under the direction and control of the Attorney General of the Republic.
The Law establishes that PROCOMPETENCIA will investigate and sanction anticompetitive practices, propose and manage its budget, hire technical consultancies, investigate complaints ex officio or upon request and decide on the admissibility of complaints. It may also request judicial precautionary measures, issue resolutions and sanctions, order the deconcentrating of economic agents, review decisions, manage its resources, protect the confidentiality of information, publish resolutions, participate in international treaties and propose administrative reforms.
This new law also brings with it an amendment to the Law for the Promotion of Competition and its regulations (Law No. 601) and adds provisions to the Organic Law of the Attorney General's Office of the Republic of Nicaragua (Law No. 411) to adapt them to the new institutional structure. The law includes repeals to avoid legal contradictions and establishes that any reference to PROCOMPETENCIA or DIRAC in other laws will be understood as referring to the new Attorney General's Office.
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.
On April 25, 2024, the National Assembly of Nicaragua approved Law No. 1202, published in La Gaceta, Official Gazette No. 75. This law establishes the creation of the National Attorney Office for the Defense of Free Competition and Alternative Dispute Resolution, which will be under the supervision of the Attorney General's Office (PGR).
This new entity integrates the functions of the National Institute for the Promotion of Competition (PROCOMPETENCIA) and the Directorate of Alternative Dispute Resolution (DIRAC). The main objective of the new National Attorney Office is to centralize the defense of free competition and the management of alternative dispute resolution, thereby consolidating the institutions that regulate these essential aspects for the economic and social development of the country.
PROCOMPETENCIA was an entity with legal personality and its own assets, with administrative and budgetary autonomy, responsible for overseeing free competition in the Nicaraguan market. Before the creation of the National Attorney Office, it functioned as an autonomous entity whose highest authority was the Board of Directors. The Board of Directors was formed by a President Director and three proprietary directors, all appointed by the President of the Republic of Nicaragua and ratified by the National Assembly.
The functions of PROCOMPETENCIA's Board of Directors included the implementation of public education programs to promote the culture of competition and the resolution of cases related to the law. The Council also heard and resolved appeals against decisions made by the President of PROCOMPETENCIA and informed the regulators if an anticompetitive practice was due to their regulations. In addition, it proposed amendments to the law, informed and requested the intervention of the Attorney General when necessary, approved PROCOMPETENCIA's organizational structure, regulations and annual budget, and could order technical consultancies. It also requested the appointment of an internal auditor, received detailed daily and monthly reports from the President of PROCOMPETENCIA on actions and administration of resources, and performed other functions conferred by law. All these attributions were reformed by the new Law, through the creation of the Directorate for the Promotion of Competition, which acquired certain functions of the former Board of Directors, within the National Attorney Office. Furthermore, the highest authority is now the National Attorney General.
The DIRAC was created on April 13, 2000, as a specialized unit of the Judicial Branch, under the supervision of the Supreme Court of Justice (CSJ). Its purpose is to provide an institutional and technical framework to facilitate mediation and arbitration as alternative dispute resolution methods, especially related to property. Its main objective was to improve access to justice, particularly for people in vulnerable situations, through mediation services, conciliation, and other methods that would allow disputes to be resolved quickly and confidentially, thus avoiding judicialization and promoting dialogue and negotiation.
Initially, DIRAC had an organizational structure with a general directorate, supported by legal, administrative and outreach advisors. Reporting to the general directorate were a sub-directorate and offices in different districts, as well as departments of civil and criminal mediation, an administrative delegation, a department of attention to private centers and external cooperation, information technology and training. However, this model was not fully developed in practice and operated with a more simplified structure. Starting in 2016, DIRAC underwent an organizational restructuring that resulted in a new organizational chart. The general directorate became supported by legal counsel and communication, with the sub-directorate and several national coordinations (by subject) reporting to it.
The National Attorney Office will be headed by the National Attorney Office, who will be appointed by the Attorney General of the Republic and will have its functions covered under the Organic Law of the Attorney General's Office. Likewise, the National Attorney will have several key responsibilities such as legally representing PROCOMPETENCIA, resolving appeals against decisions of the Director of PROCOMPETENCIA and informing the regulators about anti-competitive practices derived from their regulations so that they adopt corrective measures, among others. The National Attorney is specifically in charge of the areas of defense of free competition and alternative dispute resolution under the direction and control of the Attorney General of the Republic.
The Law establishes that PROCOMPETENCIA will investigate and sanction anticompetitive practices, propose and manage its budget, hire technical consultancies, investigate complaints ex officio or upon request and decide on the admissibility of complaints. It may also request judicial precautionary measures, issue resolutions and sanctions, order the deconcentrating of economic agents, review decisions, manage its resources, protect the confidentiality of information, publish resolutions, participate in international treaties and propose administrative reforms.
This new law also brings with it an amendment to the Law for the Promotion of Competition and its regulations (Law No. 601) and adds provisions to the Organic Law of the Attorney General's Office of the Republic of Nicaragua (Law No. 411) to adapt them to the new institutional structure. The law includes repeals to avoid legal contradictions and establishes that any reference to PROCOMPETENCIA or DIRAC in other laws will be understood as referring to the new Attorney General's Office.
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.