The Competition Superintendence (CS) publicly rendered accounts regarding its work from June 2010 until May 2011.

1. Press Release C. 16-11
th
El Salvador, July 18 , 2011.
CS Renders Accounts to Citizens
The Competition Superintendence (CS) publicly rendered accounts regarding its work from June
2010 until May 2011.
“The CS has used Today the CS publicly rendered accounts to the Salvadoran citizens regarding
this exercise to make its work from June 2010 until May 2011, both on Competition Advocacy and
its principal Law Enforcement.
achievements and
Amongst the most relevant information figure: the cases in process with respect
obstacles known
to anticompetitive practices in the sugar and pharmaceutical sectors; the
transparently to the announcement of the CS´ future institutional position regarding
he
public. The final pharmaceuticals; and its possible visit next week the Constitutional and
visit
purpose was make Administrative Contentious Chambers (ACT) of the Supreme Court of Justice
the Salvadoran (SCJ) to talk about the cases where decisions of the SC have been appealed
citizens interested in and which need to be resolved in the briefest of terms, confirming the order to
o
competition issues cease the anticompetitive practices sanctioned, conducts that harm consumer
and in promoting it welfare and economic efficiency.
for their own benefit
as consumers”, A considerable number of citizens participated in the event. More than 80
persons expressed their interest in knowing the most relev
relevant cases solved by
asserted Francisco
the CS and mainly, the specific benefit for the consumer. Furthermore they
and,
Diaz Rodriguez, were interested in the new cases currently being processed and used the forum
Competition to comment about various anomalies observed in certain markets.
Superintendent.
Mr. Marcos Rodríguez, the Transparency and Anticorruption Secretary of the
Secretariat for Strategic Affairs, opened the event. The former Competition Superintendents, Mrs. Celina
Escolan and Jose Enrique Argumedo, Juris Doctor, were also present. Members of the current Board of
Argumedo cu
Directors (BD) of the CS and its officials were part of the audience as well.
Preliminary proceedings, investigations of anticompetitive practices, defense of legality before the SCJ, and
,
ex-ante analysis of merger/acquisition authorization requests were amongst the law enforcement activities
ante
mentioned which include detecting, investigating, and sanctioning conducts or behaviors that limit competition.
competiti
With respect to Competition Advocacy, the CS informed about the progress in the issuance of opinions on
dvocacy,
legal framework and on public procurement procedures, in the execution of studies on competition conditions,
and in the issuance of recommendations, amongst others, in El Salvador.
recommendation
Additionally, the CS informed about its budgetary execution, public procurement proceedings, personnel, and
the main difficulties encountered during the period being reported. Regarding this last matter, the CS pointed
out as very important the fact that several of its recommendations have not been considered by the
governmental institutions to which they were addressed to.
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. The main results of the CS´ work from June 2010 until May 2011 are detailed below:
A. Competition Law Enforcement
etition
1. Preliminary proceedings The CS carried out six (6) preliminary proceedings searching for
proceedings:
elements of the possible existence of anticompetitive practices in the following markets: sugar; cable
TV; supply of toner and ink cartridges to public institutions; tourism, hotel, and catering business; liquid
institutions el,
petroleum gas (LPG); and, bags of coarse fibers. The last two are currently in process. Three of the
six proceedings concluded without any findings of the possible existence of anticompetitive practices
in the aforementioned markets. Only one of said proceedings provoked the initiation of an ex-officio
ex
investigation.
2. Administrative sanctioning procedures due to anticompetitive practices: The CS carried
out seven (7) administrative sanctioning procedures: five (5) pursuant to complaints and two (2) ex- ex
officio proceedings for the possible existence of anticompetitive practices that might significantly limit,
restrict, or impede competition in the following markets: pharmaceuticals; sugar; LPG; mobile
following
telecommunications (2); public procurement procedures (2); port services; and food. The LPG pr
procedure was overruled and the other six (6) are currently in process.
ocedure
3. Administrative sanctioning procedu
procedures for lack of collaboration: The CS recently
collaborati
concluded an administrative sanctioning procedure due to lack of collaboration in the food sector
within a public procurement proceeding, imposing a fine to the infringer, who paid the fine in due time.
4. Ex-ante analysis of merger/acquisition authorization requests: During the reported period,
ante
the CS received fifteen (15) authorization requests which were solved as detailed below: one (1)
request was authorized; nine (9) requests were overruled, and three (3) were declared inadmissible.
The requests involved economic agents in the following sectors: agricultural industry, trade,
construction, finance, pension funds administration, services in general, and telecommunications.
5. Defense of the legality of cases: The aforementioned is carried out when a sanctioned economic
cas
agent appeals before the Administrative Contentious Chamber of the SCJ a resolution issued by the
BD, alleging apparent illegalities. The CS´ work in said case is to prove to the ACT of the SCJ the
,
need to reestablish the competition conditions that have been limited, restricted, or impeded, harming
consumer welfare and which have been declared by the CS in its resolution declaring the existence of
decla
anticompetitive practices. The aforementioned institution defends before the ACT the legality of the
aforementioned
decisions the CS has issued and that are being questioned judicially. During the analysis, the CS is
currently defending eighteen (18) cases before the SCJ.
B. Competition Advocacy
1. Opinions on legal framework: During the reported period, the CS issued seven (7) opinions with
respect to legal framework pursuant to a request of the Civil Authorization Authority (1), of the General
Superintendence of Electricity and Telecommunications (3), of the Ministry of Internal Affairs (1), and
of the Legislative Assembly (2), on issues related to: airports, ports, electricity, telecommunications,
airports,
associations governmental procurement procedures (amendments to the Public Administration
Procurement Processes Law).
2. Opinions on public procurement processes: From May 2010 until June 2011, the CS issued
five (5) on public procurement processes pursuant to the request of the International Center of Fairs
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

3. and Conventions (1), of the Ministry of Agriculture and Livestock (1),and of the General
Superintendence of Electricity and Telecommunications (3) in the markets of leasing facilities for fairs
and
and conventions, infrastructure for the mitigation of risks and electricity.
3. Sectors studies on the competition conditions and monitoring: During the above cited
period, the CS concluded two (2) studies of the following sectors: cheeses, iron and steel. Said
institution began and will soon finalize the studies of the credit and debit cards; insurances; and
eatable lards and oils. In a near future the CS will carry out studies on the competition conditions of
on
the passenger air transportation services, as well as maritime port services. Furthermore, the CS
F
monitored the prices of fertilizers and of milk.
4. Public policy recommendations: These result from sector studies on competition conditions from
comp
opinions on legal framework and public procurement processes; from investigations of anticompetitive
practices, or from authorization of mergers/acquisitions. Said recommendations are addressed to
,
public institutions in order to evaluate, create, and/or modify public policies or legal framework that
evaluate,
impact on the competition conditions of a sector of the economy. During the reported period, the CS
issued fifty five (55) recommendations, addressed to twelve (12) governmental institutions.
institu
5. Other competition advocacy activities: The CS carried out several promotional activities:
dvocacy activities
amongst the most important are the informative presentations on competition participations in fairs
competition;
and massive promotional events; production of informative publications; participation in social
assive
networks, amongst others. Furthermore, the CS carried put important training events, followfollow-up of
local and international cooperation and collaboration agreements, and regional projects currently
cooperation
being executed as part of the international work of the CS, specifically those of the Competition Policy
cuted
Working Group in the Central American Integration.
C. Budgetary information and public procurement processes carried out by the CS
Budgetary execution pursuant to lines of business:
ecution
US$
Line of
Concept
business Available Executed Execution %
51 Salaries and labor 1,394,868.00 1,375,111.00 98.6
benefits
54 Goods and services 415,455.00 415,455.00 100.0
55 Financial expenses 116,612.00 116,612.00 100.0
and others
61 Investments on fixed 19,016.00 19,016.00 100.0
assets
Total 1,945,951.00 1,926,194.00 99.0
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

4. Public procurement processes carried out by the CS:
Quantity Modality Amount in US$
mount
105 Purchases through free management 98,085.89
2 Public tenders 111,823.97
2 International public tenders 137,804.00
1 Direct contract 5,750.00
3 Contract renewals
s 117,976.82
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