AFTA supervises fair competition and the proper functioning of markets in Aruba. Fair competition leads to lower prices, better quality, and more innovation. This benefits both consumers and companies. AFTA investigates signals of anti-competitive conduct, carries out market studies, and supervises compliance with the
Competition Ordinance. Its work is guided by a prioritization policy focused on impact, risk, and societal relevance. On this page, you can find a concise overview
of AFTA’s supervisory role. More information about our supervision and priorities can be found in the Agenda and About AFTA.
Supervision of competition and market functioning
Supervision of fair competition and market functioning
The purpose of the Competition Ordinance is to promote fair competition. In other words, to ensure that markets function properly. This means that competition between companies is not prevented, restricted, or distorted, and that companies do not abuse their dominant market position.
Fair competition between companies promotes lower prices, higher quality, more innovation, and greater freedom of choice for consumers. Companies benefit from a level playing field, a better investment climate, and improved opportunities for new market entrants without unnecessary barriers to entry. As a result, consumer welfare increases and a country’s economy becomes stronger. Increased competition can also lead to additional employment, as production and economic activity grow.
AFTA supervises fair competition and market functioning in Aruba. This benefits both consumers and companies.
What does the AFTA do?
AFTA ensures that companies comply with the rules of the Competition Ordinance.
These rules apply to all companies, business associations, and organizations that carry out economic activities in the Aruban market, both locally and internationally.
Economic activities include all forms of offering goods or services on the market by companies. It does not matter which legal form a company has, how it is financed, or whether it pursues profit. This means that the rules apply not only to private companies or business associations, but also self-employed persons, state-owned enterprises, and certain foundations.
These rules prohibit, among other things:
- Cartel agreements, such as price-fixing or market sharing;
- Abuse of a dominant economic position, such as charging unfair prices or excluding competitors.
In addition, AFTA assesses mergers, acquisitions, and cooperation agreements involving larger companies. This allows u to identify in time when competition is at risk of being harmed.
Why is supervision necessary?
Without supervision, some companies may distort competition or close off markets. This can have serious consequences: consumers may pay higher prices and have less choice, while new companies face difficulties entering the market. This slows down innovation and restrains economic growth.
AFTA’s supervision aims to prevent these outcomes. It’s objective is to create and maintain a level playing field in which all companies have equal opportunities and consumers benefit from fair prices and greater choice.
How does AFTA exercise supervision?
AFTA uses various instruments to safeguard fair competition.
- Investigation of Complaints and Signals
Each year AFTA receives various reports (complaints and signals) from companies or citizens. AFTA may decide to open an investigation. Based ont its prioritization policy, AFTA determines, in a substantiated and transparent manner, which reports or signals will be investigated. - Conducting Market Studies
In line with its annual agenda, AFTA conducts research into specific sectors or practices. This provides insight into how markets function and where risks may arise. - Review of Mergers and Acquisitions
Large mergers and acquisitions can affect competition. AFTA reviews these plans in order to assess whether a single company can gain excessive power. - Sanctions for Infringements
If companies violate the competition rules, AFTA may impose sanctions. This helps to maintain fairness in the market. - Information and Guidance
AFTA provides companies and trade associations with clear information about the competition rules. This helps them understand what is permitted and what is not and supports the prevention of infringements.
Report a suspected case of unfair competition
Do you suspect cartel agreements, abuse of a dominant position, or other forms of unfair competition? Then report this to AFTA. Your report helps us to take action where necessary.
