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The Aruba Fair Trade Authority (AFTA) is Aruba’s independent and impartial authority overseeing proper market functioning and compliance with competition regulations outlined in the Competition Ordinance (Mededingingsverordening). Three key recommendations were made in 2024 to improve consumer competition, with the regulations being in effect since January 1st. 2024.
AFTA conducts market research in Aruba and takes action to prevent agreements that restrict competition between businesses, as well as the abuse of economic power. When necessary, AFTA imposes penalties.
In their annual work report, AFTA highlighted several key areas of focus, including significant changes in the real estate sector.
Real Estate Sector
The ‘Commission Guidelines’ of the Association of Aruban Realtors (AAR) included provisions that limited price competition among intermediaries (realtors), which has been prohibited under the Competition Ordinance since January 1st, 2024.
AFTA received market signals about potential conflicts between AAR’s guidelines and the Ordinance, prompting an investigation. After requesting information from AAR, the association promptly responded and, following an interview with AFTA, decided to immediately revoke the restrictive guidelines. This revocation eliminated price competition restrictions and was communicated to AAR members.
This change benefits consumers and businesses that use intermediary services. Given AAR’s swift cooperation, the immediate revocation of the guidelines, and the short period since the Ordinance took effect, AFTA concluded its investigation without imposing sanctions.
Food Products
A well-functioning, competitive food market helps ensure the lowest possible prices for all Arubans. Approximately half of Aruba’s households, especially those near the subsistence level, spend around 40% of their monthly disposable income on food—significantly more than comparable households in the U.S. (14%) and the Netherlands (19%).
High food prices directly impact the overall prosperity of a large part of the Aruban community. Consequently, in 2024, AFTA launched an investigation into food prices and market structure in Aruba, publishing its findings in September 2024. The investigation confirmed the perception that food prices in Aruba are significantly higher than in the U.S. and the Netherlands.
Based on these findings, AFTA initiated two follow-up investigations: one into exclusive distribution agreements and another into container transport to Aruba.
Mobile Frequency Licensing
At the end of May 2024, the Minister of Economic Affairs, Communication, and Sustainable Development requested AFTA’s advice—under Article 4.8 of the Competition Ordinance—regarding potential competitive impacts of the compensation model proposed by Stratix for 5G mobile frequency use in Aruba.
In response to the request, AFTA analyzed the Stratix report, interviewed stakeholders—including SETAR, Digicel, DTZ, and Stratix—and reviewed documents and responses provided by SETAR and Digicel.
In November 2024, AFTA issued its recommendations, advising a distribution of mobile frequency space designed to promote market competition. The full advisory report is publicly available on AFTA’s website.
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