The Competition Superintendence (CS) initiated a sanctioning procedure (investigation) against four telephone companies in order to determine the existence of a price fixing agreement.

1. Press Release C. 13-10
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El Salvador, May 4 , 2010.
CS Began Sanctioning Procedure against Telephone
Companies for Price Fixing
The Competition Superintendence (CS) initiated a sanctioning procedure (investigation)
against four telephone companies in order to determine the existence of a price fixing
agreement.
The CS began a sanctioning procedure against the following four telephone
“The mere existence companies: TELEMOVIL EL SALVADOR, S.A. (through its trademark TIGO);
of a cartel or TELEFÓNICA MÓVILES EL SALVADOR, S.A. DE C.V. (through its trademark
agreement amongst MOVISTAR); DIGICEL, S.A. DE C.V. (through its trademark DIGICEL); and
competitors implies INTELFON, S.A. DE C.V. (through its trademark RED); after finding elements that
the real or potential revealed the probable existence of the anticompetitive practice of agreement
existence of a fraud. amongst competitors.
The international rd
On April 23 , 2010, the aforementioned four economic agents published in the
jurisprudence, main newspapers an announcement where they jointly informed their customers
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doctrine, and the that “starting today (April 23 , 2010), the applicable tariff for a call made from any
economic theory national fixed line to any mobile line will cost US$0.21 plus sales tax, per minute”.
coincide in cataloging Said price fixing agreement occurred after the new telephone tariff approved by
this type of conducts the National Legislative Assembly came into force at the beginnings of the current
as the most harmful year. The Legislative Decree indicates that the maximum tariff per minute for
anticompetitive calls made from any fixed line to any mobile line will cost US$0.21 plus sales tax.
practices for the For the CS, the situation previously described is a sufficient element to infer that
market´s functioning”, the telephone companies that published the above cited announcement
said Jose Enrique presumably have agreed to fix the tariff for a call made from any fixed line to any
Argumedo, mobile line; conduct which fits in the anticompetitive practice of agreement
Competition amongst competitors typified in Article 25 letter a) of the Competition Law (CL),
Superintendent. which states the following:
“Art. 25.- Anticompetitive practices among competitors are prohibited, these practices include the following,
amongst others:
a) Establish agreements to fix prices or other purchase or sales conditions under any form whatsoever;
b) Fixing or limiting quantity output;
c) Fix or limit prices at auctions or in any other form bidding private or public, national or international, with the
exception of the joint bids submitted by economic agents that are clearly identified as such in the documents
submitted by the bidders; and,
d) Market allocation, either by territory, volume of sales or purchases, by type of goods sold, customer or seller, or
by any other means”.
If the existence of the investigated anticompetitive practices is confirmed, the economic agents could be
sanctioned with a fine which shall not exceed five thousand minimum monthly urban wages in the industrial
sector; or if the case is particularly grave, a fine up to 6% of the total annual sales obtained by the infractor, or up
to 6% of the value of its assets during the previous fiscal year, or a fine equivalent to a minimum of twice and up
to a maximum of 10 times the estimated profits resulting from the anticompetitive practices, whichever is higher,
pursuant to Article 38 paragraphs 1 and 2 of the CL.
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