PARAGUAY Law and Practice Contributed by: Mauro Mascareño, Carlos Vargas and Rodrigo Gómez Sánchez, Mascareño Vargas – Asesores
7.5 Antitrust Regulations In Paraguay, antitrust regulations are governed by Law No 4956/13 on the Promotion of Com- petition, and CONACOM is the authority respon- sible for overseeing these matters. Filing Requirements A filing with CONACOM is required for takeo- ver offers or business combinations that meet the following threshold: the combined turnover of the parties involved must currently exceed around USD35,000,000, updated annually according to Paraguay’s minimum wage. When the Filing Must Be Made The filing must be submitted within 10 days after the transaction is executed. Unlike other juris- dictions where filings are required before clos- ing, Paraguayan law allows the transaction to be completed first, with the obligation to file for antitrust approval within this post-transaction window. CONACOM’s Powers CONACOM has extensive powers to review, approve, conditionally approve or block a trans- action based on its potential impact on competi- tion. During its review process, which typically lasts 60 to 120 days, CONACOM can: • request additional information – the commis- sion may require further documentation or analysis to evaluate the transaction’s com- petitive impact; • impose conditions – if the transaction raises competition concerns, CONACOM can impose remedies, such as asset divestitures or other behavioural conditions, to mitigate anti-competitive effects; and • block the transaction – in cases where no remedy sufficiently addresses the anti-com-
petitive issues, CONACOM has the authority to block the deal outright. It is crucial that parties comply fully with CONA- COM’s requirements. Failure to file within the required period, or to comply with the imposed conditions, could result in penalties or even a reversal of the transaction. 7.6 Labour Law Regulations In Paraguay, employers must comply with sev- eral fundamental labour law regulations: • minimum wage – employers are required to follow the government’s legal minimum wage; • severance pay – employees who are terminat- ed without cause are entitled to receive half a month’s wage for every year of service; • notice period – employers must give notice before terminating an employee, with the notice period ranging from 30 to 90 days, depending on the length of the employee’s service; • social security contributions – employers must contribute 16.5% of the gross monthly salary towards pensions and healthcare; and • vacation entitlement – employees are enti- tled to 12 to 30 days of paid annual leave, depending on their length of service. There are no works councils, but labour unions are becoming increasingly rare. 7.7 Currency Control/Central Bank Approval There are no formal currency controls in Para- guay. M&A transactions involving a central bank-regulated entity may require central bank approval to ensure compliance with MLA regu- lations.
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