Readers write: The Aruba Fair Trade Authority is an administrative body similar to bodies with the same purpose which we know in over 100 countries all over the world. Curacao has had one for several years already. The Aruba and Curacao entities are based on the Dutch ACM authorities.
The main mission in Aruba is to prevent the establishment of cartels and the prohibition on abuse of a dominant position in the market.
The risk of forming cartels is seen by AFTA for instance, in associations of companies which offer similar services or products such as the Aruba Real Estate Association, CUA, the merchant organization, the Aruba Bankers Association, etc.
The abuse of a dominant position in the market could possibly be seen in telecommunications, energy supply, and healthcare insurance, often provided by (semi) government owned companies, but also when the market share of one company, in a particular field, becomes too big, that it would prevent fair and effective competition, to possibly lower prices, and allow consumers more choices, or innovative services. We experienced some abuse of dominant positions in the market, in Curacao in recent years.
AFTA seemed to focus initially on private sector companies, but said it just had a meeting with the government-owned telecommunications company, Setar, which enjoys a dominant position in the market, one which must be investigated.
Why was the Aruba Realtors Association selected as one of the first companies to be scrutinized? According to AFTA Board Members, they received complaints.
We should not exclude the possibility that this had to do with the recent class action suit by homeowners in the US against the National Realtors Association. Perhaps inspired by it.
The Aruba Realtors Association members try to focus on quality and professional services, but the members only stand for a minority of realtors registered at the Central Bank of Aruba.
Because, part of the guidelines of the AAR could conflict with the new competition ordinance that went into effect on January 1, 2024, board members of AAR and the AFTA, staged a meeting, in which it was decided to repel the conflicting guidelines, and all members were informed accordingly.
AFTA makes it clear that they consider educating stakeholders in all segments of our community as an important part of their mission, and that is exactly what the AFTA presentation tried to do this week, in various venues.
Over time consumers will be able to judge what the contribution of AFTA means to them, the results generated by these administrative bodies differ from country to country, but they are always positive outcomes. For now, it managed to lower real estate commissions rates here.
