An analysis states that bureaucratic obstacles may discourage the entry of new competitors in a market moderately concentrated.
From a statement issued by the Superintendency of Competition:
SC Updates Study on Liquid Fuel Sector
After completing in June 2015 the "Update of the sectoral study on competition in the market for liquid fuels" prepared by the Economic Administration of the Superintendency of Competition, the Board of Directors of the authority issued recommendations aimed at promoting economic efficiency and welfare of consumers in this market.
Arguing concentration of demand in light of the award to AES Corporation. three of the 27 companies that participated in the tender have filed motions for reconsideration.
The main argument behind the appeals for reconsideration filed by Pentacles Energy, SA, Gator Partners Latam and International Panamá Power Corp.., is the market concentration that AES Corporation will have after starting to supply power from 2018.
The private sector warns about the market concentration that the Corporation AES could have if it wins the tender for 350 MW, where it presented the lowest bid.
In a letter sent by the Chamber of Commerce, Industries and Agriculture to Energy Secretary Victor Urrutia, it was indicated that according to the law, "... no market agent can apply for awards if the same exceeds 25% of national energy consumption. " If Natural Gas del Atlantico, a subsidiary of AES Corporation, wins in the bidding for 350 MW of thermal energy, "... AES group would have 177 thousand MW in the country or 73% of current demand."
A study by the Superintendency of Competition highlights concentration in the market for broadcast TV and suggests accelerating the transition to digital in order to incorporate new operators.
The full report has not yet been released by the Superintendency of Competition (SC), but it has been revealed that the main point is the strong concentration in the market, which could be reduced if it faster progress is made in moving towards a scheme of digital television, allowing the entry of more operators. One alternative is to reserve part of the spectrum for the entry of future operators.
The Superintendency of Competition is investigating whether the mills El Angel and La Magdalena carried out operations that could be considered economic concentration.
From a statement issued by the Superintendency of Competition (SC):
SC launches an investigation against two mills
The Superintendency of Competition has initiated an investigation against the operators Ingenio El Angel SA de CV and Ingenio La Magdalena, SA de CV, to determine whether or not they infringed the Competition Act by having operations that could be considered economic concentration, without requesting approval from this Office, which they are obliged to do.
Yobel Supply Chain Management is looking for a plot in western San José to build facilities for concentrating its offices in one place and a distribution and a latest generation logistics center.
The Peruvian logistics giant is planning, for 2017, to concentrate its operations in Costa Rica, which is currently developed at two separate facilities.
An article in Elfinancierocr.com reports that Mario Vargas, general manager of Yobel SCM Costa Rica, said that "... The company has created a master plan for the current 5 year period and to do it, the Head Office in Peru has assigned an investment of over $5 million; looking ahead to 2020, we aim to centralize operations which are currently carried out in two facilities in the Coyol of Alajuela. "
The Superintendency of Competition has approved a request made by the company in January 2014 to acquire eight gasoline stations in the country.
From a statement issued by the Superintendency of Competition in El Salvador:
The Board of the Superintendencia de Competencia (SC) resolved to authorize the application for a merger between Alba Petróleos de El Salvador de SEM de CV resulting from the purchase of eight service stations. The application responded to a penalty imposed by the SC last November, in which it ordered, among other things, the submission of an application for authorization of purchases.
While operators claim for effective competition on the market, the Telecommunications Authority has become a thorn in the side of the telcoms companies.
In the steps undertaken by Holst Van Patten S. A. for the acquisition of satellite internet services, the Telecommunications Superintendency (Sutel) asked the company to request an authorization for a merger and then retracted it clarifying that it would not go ahead. Currently it is asking for an application for frequency allocation.
The company Mabeca has filed an appeal citing unconstitutionality with the Sala IV (Constitutional Court) of Costa Rica, claiming disproportionality in the fine of $2.3 million that has been applied to them.
In August 2011, the Commission to Promote Competition under the Costa Rican Ministry of Economy, found that after the acquisition of Atlas Eléctrica by Mexican company Mabe in 2008, there was a "prohibited concentration" according to the law for promoting competition and consumer protection, and imposed a fine of $2.3 million.
In order to avoid paying penalties after a merger it is possible to obtain endorsement of the operation from the Commission to Promote Competition (COPROCOM).
A statement from the COPROCOM reads:
In Costa Rica, unlike most countries with greater developments in Competition Law, control of concentrations is provided for after the event, ie, once the transaction has occurred. In contrast, prior notification of concentrations is the most frequently used mechanism to control concentrations, being more effective as a preventive tool, since it avoids the difficulties of dismantling an operation that has already taken place.
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