Third Year Of Achievements Of The Cs

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In 2008, the Competition Superintendence (CS) achieved the goals established and organized according to priorities in its Operational Plan 2006-2010. The CS has been active in promoting competition and enforcing the Competition Law, ordering the immediate reestablishment of competition conditions in favor of a more competitive environment and for the consumers´ welfare.

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Third Year Of Achievements Of The Cs

  1. 1. Press Release C.64-08 El Salvador, December 19th, 2008 Annual Work Report Third year of achievements of the CS In 2008, the Competition Superintendence (CS) achieved the goals established and organized according to priorities in its Operational Plan 2006-2010. The CS has been active in promoting competition and enforcing the Competition Law, ordering the immediate reestablishment of competition conditions in favor of a more competitive environment and for the consumers´ welfare. The CS achieved the foreseen goals regarding competition advocacy, carrying out “In 2008, the CS achieved the promotion activities, creating awareness in the public opinion and in governmental goals established and organized according to entities, as well as profoundly concentrating, during its third year of operations, in priorities in its Operational enforcing the Competition Law (CL), which consists in the investigation and Plan. It also satisfactorily sanctioning of anticompetitive practices, as well as a preventive focus authorizing approved, pursuant to mergers and acquisitions in different sectors of the economy. international standards, the OECD exam on Competition In 2009, the CS shall continue its work in competition advocacy in order to develop Law enforcement, to which the and consolidate a true competition culture in the country. In the enforcement area, CS voluntarily submitted. In the CS shall focus its efforts in public biddings in order to determine the existence of 2009, the CS shall focus its competition conditions in those proceedings and shall prepare the “White Book” (in efforts in public biddings in order to determine the Spanish, Libro Blanco), containing the necessary reforms to improve the existence of competition enforcement of the CL, based on the recommendations resulting from the OECD conditions in those exam and those identified when confronting the legal framework to reality, which will proceedings and shall prepare be adopted at different levels and time periods. This proposal shall be presented to the “White Book” (in Spanish, the President of the Republic for his consideration. Libro Blanco), containing the necessary reforms to improve Following is a detail of the goals achieved, in 2008, by the CS in the aforementioned the enforcement of the CL, working areas: based on the recommendations resulting from the OECD exam and Enforcement of the Competition Law those identified when confronting the legal framework to reality, which will Cases of anticompetitive practices be adopted at different levels processed in 2008 and time periods and shall continue its work in competition advocacy in order to develop and consolidate a true competition culture in the country”, asserted the Competition Superintendent, Celina Escolan Suay. In process Finalized Finalized Complaints Ex-officio investigations 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
  2. 2. Administrative level The CS substantiated 3 cases for anticompetitive practices. One of them was finalized (cartel in the wheat flour market) and the other two are still in process (abuse of dominance in the telecommunications market). Likewise, the CS received 4 complaints which were declared unfounded because they did not fit in the profiles determined in Anticompetitive practices the CL. under investigation in 2008 Agreements amongst competitors The agreement amongst competitors case initiated ex-officio in (Art. 25 CL) Agreements amongst non-competitors April with a search with prior judicial authorization of 2 economic Not typified (Art. 26 CL) agents, finalized in October with a fine of US$4,032,672.10 imposed on both agents. Abuse of At the closing of the year, the CS initiated 7 sanctioning dominance (Art. 30 CL) proceedings against 4 economic agents for failing to supply information in an investigation of anticompetitive practices in the telecommunications market. The CS also imposed one fine to an economic agent for failing to supply the requested collaboration during the preparation of a market study of the sugar industry. Mergers and acquisitions Merger and acquisition authorization requests resolved in 2008 In 2008, the CS processed a total of 14 merger and Desisted acquisition authorization requests. Two were authorized request (AES NEJAPA GAS – BIOENERGÍA, AMNET, and Authorized MILLICOM), 10 were declared unfounded, 1 inadmissible, requests Unfunded and 1 desisted. requests Not admitted request Jurisdictional level In 2008, the CS filed a total of 25 reports and writs with the Contentious Administrative Chamber (in Spanish, Sala de lo Contencioso Administrativo) of the Supreme Court of Justice, defending with technical, legal, and economic arguments its resolutions, in two cases (fuel) and repeating, in others, the need to revoke the precautionary measures imposed, because they harm the market and the consumers. The CS has requested the Attorney General (in Spanish, Fiscal General de la República) in nine different occasions to collect the fines imposed to various sanctioned economic agents. 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. 3. Competition advocacy Market studies: Finalized. Pharmaceuticals phase II and sugar. In process: rice and fertilizers. Price follow ups: poultry, eggs, beans, wheat flour, and goods that use it as input. Opinions: 10 on laws and regulations drafts: ports, pharmaceuticals, hydrocarbons, and electricity. 16 on public acquisition procedures: ports, electric, pharmaceuticals, and services. Public policy recommendations: Resulting from studies: 29 recommendations Public policy recommendations issued in Public policy recommendations issued in 2008 resulting from studies per sector 2008 resulting from studies per institution Ministry of Public Telecommunications Health and Social Presidency of Assistance the Republic General Ministry of Superintendence of Economy Electricity and Telecommunications Pharmaceuticals Poultry Ministry of Agriculture Liquid Consumer Sugar Petroleum Gas Protection Superior Council Salvadoran Council of Public Health of the sugar industry 2 7% Resulting from opinions on laws and regulations drafts y public acquisition procedures: 37 recommendations Public policy recommendations issued in 2008 Public policy recommendations issued in 2008 resulting from opinions per sector resulting from opinions per institution Ministry of Ministry of Services National Lottery Ministry of Finance National Defense for Social Welfare Education of El Salvador Ministry of Public Health and Social Salvadoran Assistance Institute of Social Security Ministry of Labor and Supreme Court Pharmaceuticals Social Welfare of Justice Autonomous Presidency of the Executive Port Republic Commission 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
  4. 4. National and international Cooperation and Coordination Agreements National: With entities of the Executive Branch: 2 (Ministry of Economy and National Registry Center) y With the Academia: 1 (School of Communications “Mónica Herrera” (in Spansich, Escuela de Comunicación “Mónica Herrera”) International: 1 (Agreement with the Comisión para Defensa y Promoción de la Competencia of Honduras). Support amongst institutions: (Presidential Commission for the Analysis of the Concession of Ports Acajutla and La Unión (in Spanish, Comisión Presidencial para el Análisis de la Concesión de los Puertos de Acajutla y La Unión). International and Central American activity Work Group on Competition Policy in the Central American Integration (in Spanish, Grupo de Trabajo de Política de Competencia en la Integración Centroamericana): 1 presential meeting, 4 videoconferences, 3 Central American, and 1 regional study on passenger air transportation under the coordination of CEPAL. The II Central American Competition Forum took place during the activities of the 2008 Competition Week. Active participation in forums: OECD Global Competition Forum, VII ICN Annual Conference, IX Session of the Intergovernmental Experts Group (IGE) on Competition Law; VI Latin American Competition Forum, and V Ibero American Competition Forum. Training by international consultants: 7 seminars Commercial negotiations: 3 negotiation rounds and 3 Central American coordination meetings regarding the Association Agreement Central America - European Union. Especial events a) Launch of the OECD Competition Evaluation Kit. The CS presented the “OECD Competition Evaluation Kit”; b) Exam on El Salvador´s Competition Policy and Law. The CS voluntarily submitted to said exam and successfully approved it. c) Launch of the book “The State monopolies, monopolistic practices, and the State´s income in El Salvador”, (in Spanish, “Los estancos, las prácticas monopólicas y las rentas del Estado en El Salvador”), book about social and economic history (1524 a 2008). The CS donated the copyrights of the second version of said book to the Salvadoran National Commission for Culture and Arts, (in Spanish, CONCULTURA), together with the first edition of the aforementioned version, containing 1,300 copies for its sale to the public. This book has been incorporated in the collection of CONCULTURA “Salvadoran History Library”, (in Spanish, “Biblioteca de Historia Salvadoreña”), as volume number 20. Promotional activities. 74 presentations within the competition advocacy program to audiences such as private enterprise, non-governmental organizations, academic community, associations, and governmental institutions. 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

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