The Competition Superintendence (CS) imposed a fine on the company Distribuidora de Azúcar y Derivados, S. A. de C.V. (hereinafter Dizucar), for not supplying exact information pursuant to the requested made in an investigation begun against said company for alleged abuse of dominance and tying arrangements.
C.11-12 CS Imposed a Fine on Dizucar for Filing Inexact Information
1. Press Release C. 11-12
El Salvador, March 28th, 2012.
CS Imposed a Fine on Dizucar for
Filing Inexact Information
The Competition Superintendence (CS) imposed a fine on the company Distribuidora de Azúcar
y Derivados, S. A. de C.V. (hereinafter Dizucar), for not supplying exact information pursuant to
the requested made in an investigation begun against said company for alleged abuse of
dominance and tying arrangements.
“The Board of The Board of Directors (BD) of the CS imposed the company Dizucar a
Directors deemed fine amounting US$101,997.75 for filing inexact information requested
the existing within an investigation currently carried out by the CS against the
evidence aforementioned company. Up to this date, this fine is the highest ever
sufficient to imposed on an economic agent for lack of collaboration.
determine that
Dizucar had not The CS requested necessary information and documentation from Dizucar
complied with and other economic agents to carry on the pertinent investigations, asking
the CS´ from Dizucar a notarized copy of the sugar supply contracts in force in
information 2008 with certain agents, as well as those in force when the request was
request”, asserted made. Dizucar filed the contracts without any clarification; and waited six
the Competition months, when the sanctioning procedure investigating possible
Superintendent, anticompetitive practices had substantially advanced, to inform the CS, in
Francisco Diaz writing, that said contracts had not been in force for various years.
Rodriguez.
Due to the evidence that Dizucar had filed inexact information, hiding the
fact that contracts it had presented were no longer in force, the BD ruled that Dizucar has
infringed the Salvadoran Competition Law (CL) pursuant to its Article 38 paragraph 6, which
penalizes individuals, companies, or institutions who deliberately or negligently fail to supply
the requested information, or if collaborating, provide incomplete or inaccurate information.
Dizucar has eight days to pay the fine; period which begins the day the resolution that declared
firm the decision imposing the fine was notified.
2. Background
April 29th, 2010 The CS began a sanction procedure against Dizucar for alleged anticompetitive practices.
June 21st, 2011 The probatory phase began.
June 21st, 2011 The CS requested information from Dizucar and other economic agents.
July 7th, 2011 Dizucar filed information which apparently complied with the CS´ request.
January 12th, 2012 Dizucar filed a writ expressing that the filed contracts were no longer in force.
February 22nd, 2012 The CS initiated a sanctioning procedure against Dizucar for fling inexact information.
February 27th, 2012 Dizucar defended itself by affirming it had duly filed the requested information.
March 19th, 2012 The BD ruled imposing Dizucar a fine for having provided inexact information.
March 27th, 2012 The BD dismissed the recourse filed by Dizucar and declared firm the decision imposing the
fine.