This paper presents a theoretical and practical analysis of the economic dependence in Ecuador. Ecuadorian
competition law lacks of a methodology to identify dependence among two undertakings. This research
proposes a solution, which has been addressed from an exhaustive description of international regulations
and comparative competition cases. The result of this analysis led to establish a three-step process. The
first is to define the relevant market; the second, study the degree dependence; and the third, is to identify
those signatures having a higher substitution cost. Subsequently, the methodology was applied in the
distribution chain, where was possible to identify 321 dependent firms. Finally, by a model of binary response,
the investigation exposes the factors that causes dependence; the main factors are: diversification and
low value added in products.
