The Competition Superintendent integrated the file and concluded the investigation against PERSONAL, TELEFONICA, TELEMOVIL, and DIGICEL and ordered the file to be sent to the Board of Directors (BD) of the Competition Superintendence (CS) in order to issue a final decision.

1. Press Release C. 12-09
El Salvador, February 23rd, 2009
Abuse of Dominant Position
Cases against Telephone Companies in the BD´s hands
The Competition Superintendent integrated the file and concluded the investigation
against PERSONAL, TELEFONICA, TELEMOVIL, and DIGICEL and ordered the file
to be sent to the Board of Directors (BD) of the Competition Superintendence (CS) in
order to issue a final decision.
The Competition Superintendent integrated the file and concluded the investigation
“The BD of the CS has against PERSONAL, TELEFONICA, TELEMOVIL, and DIGICEL and sent to the BD
the file in its hands and of the CS the file containing all the information and documentation obtained during
has initiated the the investigation, such as: the complaint, the plaintiffs´ defense allegations, and
analysis of the information requested to said economic agents by the SC, as well as information
information obtained, required to the complainants, GCA and SALNET, to other participants in the sector,
in order to issue a final and to the regulator, the General Superintendence of Electricity and
resolution regarding Telecommunications, (in Spanish, Superintendencia General de Electricidad y
the investigated Telecomunicaciones “SIGET”).
practice,” said Celina
Escolan Suay, “The BD of the CS has the file in its hands and has initiated the analysis of the
Competition information obtained, in order to issue a final resolution regarding the investigated
Superintendent and in practice,” said Celina Escolan Suay, Competition Superintendent and in charge of
charge of the the investigation.
investigation.
Simultaneously, the Competition Superintendent sent to the BD of the CS a file
containing another investigation against CTE and PERSONAL.
The aforementioned investigations were initiated due to complaints filed by GCA and SALNET, and by
AMERICATEL, for alleged abuse of dominant position described in Article letters a) and b) of the Competition
Law which literally prescribe the following:
“Art. 30. Any action that constitutes an abuse of dominant position by economic agents in a given market is
forbidden, such as the following, amongst other cases:
a) The creation of obstacles to impede the entry of competitors or the expansion of existing competitors;
b) When the action has the purpose to limit, impede, or displace in a significant way Competition in a
market;”.
Related to the above mentioned, Article 14 letters g) of the Competition Law list, amongst others, the following
duties and attributions:
“g) Solve the cases under their jurisdiction and enforce the corresponding sanctions;”.
Edificio Madreselva, Primer Nivel, Calzada El Almendro y 1ª Avenida El Espino, Urbanización Madreselva.
Antiguo Cuscatlán, El Salvador.
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2. Pursuant to the Competition Law, the Competition Superintendent as defender of the free market carries out
investigations and other activities within the procedure. On the other hand, the BD must study the file in order to
issue a final decision with respect to the investigation.
During said proceedings, another file was separately opened in order to determine the failure to supply the
necessary collaboration by CTE, PERSONAL, TELEFONICA, TELEMOVIL, and DIGICEL in the aforementioned
investigations for alleged anticompetitive practices. As a consequence, in January of the present year, the BD of
the CS sanctioned said economic agents for failing to supply, in time, the documents and information requested
to them during the probatory period.
Background: Case initiated due to a complaint filed by GCA/SALNET
August 16th, 2006 The CS and SIGET subscribed a cooperation and coordination agreement.
th
December 12 , 2007 GCA and SALNET filed with the CS a complaint.
September 2007 – The CS carried out a study on the competition conditions of the telecommunications
January 2008 sector.
July 11th, 2008 The CS initiated the administrative sanctioning procedure against PERSONAL,
TELEFONICA, TELEMOVIL, and DIGICEL.
July 14th, 2008 The CS notified the involved economic agents the initiation of the aforementioned
procedure.
September 17th, 2008 CS opened the probatory period in the case against PERSONAL, TELEFONICA,
TELEMOVIL, and DIGICEL and requested information for the first time to said
companies, other agents and the sector regulator, SIGET.
October 21st. 2008 The BD of the CS extended the period in order to reiterate the executed information
request.
December 1st, 2008 The CS requested for a second time information and documentation which was
requested on September 17th, 2008.
December 12th, 2008 The period granted to the economic agents to whom information was requested,
expired.
December 16th, 2008 – The sanctioning procedure due to failure to supply collaboration was initiated and
January 16th, 2009 concluded.
February 3rd, 2009 The CS granted a hearing with respect to the declaration of confidentiality of
gathered documentation and information.
February 9th, 2009 The period to answer the hearing expired.
February 10th, 2009 The CS declared confidential certain gathered documentation and information.
rd
February 23 , 2009 The Competition Superintendent integrated the file, concluded the investigation, and
sent the file to the BD of the CS in order to issue a final ruling.
Edificio Madreselva, Primer Nivel, Calzada El Almendro y 1ª Avenida El Espino, Urbanización Madreselva.
Antiguo Cuscatlán, El Salvador.
Conmutador (503) 2523-6600, Fax (503) 2523-6625 Comunicaciones (503) 2523-6616

3. Background of the case initiated due to a complaint filed by AMERICATEL
March 24th, 2008 AMERICATEL filed with the CS a complaint against CTE and PERSONAL.
July 10th, 2008 The CS initiated the administrative sanctioning procedure against CTE and
PERSONAL.
September 16th, 2008 AMERICATEL filed with the CS a waiver writ.
th
September 18 , 2008 The CS requested information for the first time to CTE and PERSONAL, the
complainant, other participants, and the sector regulator, SIGET.
December 1st, 2008 The CS requested for a second time information and documentation which was
requested on September 18th, 2008.
December 12th, 2008 The period granted to the economic agents to whom information was requested,
expired.
December 16th, 2008 – The sanctioning procedure due to failure to supply collaboration was initiated and
January 16th, 2009 concluded.
January 30th, 2009 The CS admitted AMERCATEL´s waiver.
February 6th, 2009 Period for the economic agents to challenge the aforementioned resolution before the
CD expired.
February 9th, 2009 The CS granted a hearing with respect to the declaration of confidentiality of gathered
documentation and information.
February 16th, 2009 The period to answer the hearing expired.
rd
February 23 , 2009 The CS declared confidential certain gathered documentation and information,
notified the involved economic agents, and sent to the file to the BD of the CS in order
to determine the pertinence to issue public policy recommendations.
Edificio Madreselva, Primer Nivel, Calzada El Almendro y 1ª Avenida El Espino, Urbanización Madreselva.
Antiguo Cuscatlán, El Salvador.
Conmutador (503) 2523-6600, Fax (503) 2523-6625 Comunicaciones (503) 2523-6616