Competition consists of the possibility of freely accessing the market for goods and services with the idea of satisfying demand through the execution of contracts or agreements with other individuals. It is an essential requirement for the free market economy to be efficient for the benefit of society as a whole.
This was established by the Civil Chamber of the Supreme Court of Justice, which specified that, in order to achieve optimal social cooperation, entrepreneurs must continuously provide goods and services that are sufficiently attractive in terms of their characteristics and prices, so that consumers prefer them over other goods in the market, thereby achieving prosperity for the community.
Therefore, to be competitive in the free market model, one must focus on offering customers (current or potential) a product or service that stands out for its quality-price ratio, so as not to yield ground to competition.
Likewise, this continuous effort has an impact on common welfare, as it encourages price reductions and, similarly, increases people's purchasing power. Furthermore, it constitutes the main aspect of business innovation, seeking cleaner, more sustainable, and more efficient production techniques, as well as the development of the economy in general.
Unfair Competition
Knowing that competition is of vital importance in our society insofar as it represents a manifestation of a fundamental right such as freedom and an essential prerequisite of the free market economy, it is logical that the law seeks to protect it carefully through actions that prevent and remedy unfair competition.
As a result of the foregoing, laws promote and encourage competition so that good commercial practices are developed, good faith is exercised in commercial acts, or honest industrial or commercial usages are followed, all with the idea of safeguarding economic development and market freedom as mentioned above.
Supreme Court of Justice, Civil Chamber, Judgment, SC-39072021 (11001310302720110018101), 08/09/2021.