Capitanich defends state role in 'controlling monopolies'
For a second time this week, Cabinet Chief Jorge Capitanich came out in favour of “regulating” monopolies in Argentina, setting the cases of the anti-trust law in the US and the European Union-Microsoft dispute as examples of how the state plays a key role in controlling economic players to protect “the weak.”
“The functioning of the capitalist system involves also a debate over the regulation of monopolies because in that way it is possible to create a quality economic system, with incentives for investments, so that the strongest (players) don’t take over the surplus from the weak,” the head of ministers said while addressing reporters at the government house this morning.
Still, Capitanich pointed out his comments did not mean that giving a more active role to the state to control monopolies and market rules involved the regulation of companies’ "profit rates."
The cabinet chief yesterday had warned the Cristina Fernández de Kirchner administration was considering indeed a “legislative revision” in order to control private-sector retailers that have failed to abide by a price agreement that allows the government to keep tabs on 194 basic products.