The Board of Directors (BD) of the Competition Superintendence (CS) imposed a fine of US$7,896.60, to the telephone company INTELFON, S.A. de C.V. for nor supplying the information required by the aforementioned institution, after having begun an investigation against said company for the alleged existence of the anticompetitive practice: agreement amongst competitors.

1. Press Release C. 15-11
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El Salvador, July 13 , 2011.
SC Fines INTELFON for Lack of Collaboration
C
The Board of Directors (BD) of the Competition Superintendence (CS) imposed a fine of
US$7,896.60, to the telephone company INTELFON, S.A. de C.V. for nor supplying the
.
information required by the aforementioned institution, after having begun an
investigation against said company for the alleged existence of the anticompetitive
tion
practice: agreement amongst competitors.
rd
“The information On May 23 , 2011, the CS requested INTELFON necessary information as
requested to proof in a case the above cited institution has opened against said economic
agent for allegedly committing the anticompetitive practice: agreement amongst
economic agents is
competitors. Notwithstanding the aforementioned, the company did not supply
aforementioned,
fundamental for the the requested information, declaring that this non compliance was due to
investigation and internal administrative disorder.
sanction of
anticompetitive In the primary case, which initiated in May 2010, the CS investigates the
practices that harm existence of facts that could determine the existence of the anticompetitive
competition. practice: agreement amongst competitors, pursuant to Article 25 letter a) of the
Collaboration Salvadoran Competition Law (CL). In said investigation the CS also requested
amongst the involved information from the rest of the telephone companies involved: DIGICEL,
compani
must exist in order to TELEMOVIL,
TELEMOVIL and TELEFONICA MOVILES. The information provided by these
economic agents is currently being analyzed to verify whether it is complete or
correct the possible
not.
market flaws in favor
of consumer The infringement committed by INTELFON is described in Article 38 paragraph
welfare”, asserted 6 of the CL, which states: “The Superintendence may also impose a fine
The
Francisco Diaz amounting up to ten minimum urban monthly wages in the industrial sector for
Rodriguez, every day of delay, to the individuals, companies, or institutions who
Competition deliberately or negligently fail to supply the requested information, or if
Superintendent. collaborating, provide incomplete or inaccurate information...”
information.
Pursuant to said provision, the BD imposed INTELFON a fine of US$ 7,896.60, which results from adding one
,
minimum urban monthly wage in the industrial sector for every day of delay (36 days). The minimum urban
monthly wage in the industrial sector in force when this procedure began was US$219.35
219.35.
According to statements of the Competition Superintendent, Francisco Diaz Rodriguez, this is the second fine
imposed in the present year for not supplying information within administrative sanctioning processes opened
due to the alleged existence of anticompetitive practices.
The first case sanctioned by the CS during 2011 was opened against the food company ALIMENTOS
GLOBALES, S.A. de C.V. (ALIGLOBAL) who was fined with US$223.41 for nor supplying the information
(ALIGLOBAL),
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requested by the CS, after beginning an investigation against it. Said fine was cancelled last June 8 .
Edificio Madreselva, 1er Nivel, Calzada El Almendro y 1ª Ave. El Espino, Urb. Madreselva, Antiguo Cuscatlán, El Salvador.
E-mail: contacto@sc.gob.sv - www.sc.gob.sv

2. Background of the sanctioning proceeding against INTELFON for not supplying information
oning
Date Actions
rd The CS began the sanctioning procedure against the telephone companies:
March/3 /2010
TELEMOVIL, TELEF
VIL, TELEFONICA MOVILES, DIGICEL, and INTELFON.
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April/14 /2011 The BD extended the term for the investigations.
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April/27 /2011 The 20-business day evidentiary phase began.
business
rd
May/23 /2011 The CS requested information in the anticompetitive practice´s case.
rd
May/23 /2011 The CS notified the aforementioned request to the investigated companies.
th
May/30 2011 The term given to supply the information ended.
st
May/31 /2011 The delay term began.
th The CS initiated a sanctioning procedure against INTELFON for not providing
June/6 /2011
collaboration.
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June/15 /2011 The CS notified the initiation of the above mentioned proceedings.
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June/17 /2011 INTELFON filed a writ alleging defense arguments and annex
annexing certain documentation.
st The BD decided to continue the proceedings and ordered the 8 8-business day evidentiary
June/21 /2011
phase to begin.
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June/29 /2011 INTELFON filed another writ alleging defense arguments.
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July/5 /2011 The BD issued the final resolution imposing a fine for lack of collaboration
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July/11 /2011 INTELFON filed a motion for revocation before the BD.
th The BD overruled the motion for revocation filed by INTELFON and ratified the order to
July/12 /2011
pay the fine.
Edificio Madreselva, 1er Nivel, Calzada El Almendro y 1ª Ave. El Espino, Urb. Madreselva, Antiguo Cuscatlán, El Salvador.
E-mail: contacto@sc.gob.sv - www.sc.gob.sv