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.
The company was fined $759,924 for failing to petition the Salvadorian Superintendency of Competition to approve to purchase of nine service stations.
In addition to the financial penalty, the Superintendencia de Competencia (SC) demanded that the company submit within 30 days an application to follow the procedure which should have been done in the beginning.
The Competition Superintendence of El Salvador has invited bids for conducting a market research study of the credit and debit card industry.
The contract includes “providing consulting services for diagnosing and assessing the conditions for competition in the credit and debit card industry in El Salvador” and “identifying the relevant economic actors and markets“.
The Superintendency of Competition has initiated a study on the conditions of competition in retail markets, especially in supermarkets and local markets.
"... the aim is to make a diagnosis of this economic activity and, if necessary, issue policy recommendations to help strengthen competition," noted an article in Elsalvador.com.
"The studies consulted recognize that some competitive concerns may arise, caused by among other things, the concentrated structure (with few competitors) of the activity, the incursion of the "store brands" (known as MDT by its initials in Spanish) and the privileged position of supermarkets with suppliers and other competitors. "
The Salvadoran Superintendence of Competition has fined the company $75 thousand for not giving complete information and not including VAT on the unit selling price of gas cylinders.
"... TROPIGAS committed an administrative offense defined in article 38 paragraph 6 of the Competition Act, having provided in an inexact manner the information required in the process of preliminary proceedings initiated in May 2011 in the gas market," reported Elsalvador.com article.
The Superintendency of Competition could set minimum and maximum transient prices for air tickets, in the national interest or because of public need.
The initiative a proposal by the Frente Farabundo Martí para la Liberación Nacional (FMLN) to the Salvadoran Congress to amendment Article 22 of the Civil Aviation Act so that the Superintendency of Competition (SC) can set those rates.
The Superintendence of Competition in El Salvador has ruled that the transaction does not classify as monopolistic concentration.
Europa SA, the third largest supermarket chain in El Salvador after Walmart and the Guatemalan Hiper Paiz, had closed the store last week, which was ranked as Central America's largest when opened in 1998.
A study presented by the Superintendency of Competition (SC) reveals that 80% of purchases of local production and imports of raw rice are controlled by only two operators.
Jaime Baires, an economist from the SC, said, "The problem of having a concentrated industry is that there is little competition. The fewer competitive pressure leads to more market power for the larger participants, and that translates into higher prices (for consumers). "
The Salvadoran Superintendence of Competition has received a request by Calleja SA, owner of Súper Selectos, to buy Almacenes Europa.
The request, which will be reviewed by the Board of the Superintendency of Competition (SC), was presented on January 2nd and is for the purchase of the five of sales outlets belonging to Europa SA, owner of Almacenes Europa and Hiper Europa.
The Superintendency for Competition in El Salvador has agreed to hear a resubmitted economic concentration application by Puma Energy.
A press release from the Superintendency for Competition (SC) states:
The Board (CD in Spanish) of the SC is considering a new economic concentration application by Puma Energy for the acquisition of shares in Esso Standard Oil’s El Salvador Subsidiary, Servicios Santa Elena and part of the Acajutla Petroleum Refinery.
In El Salvador, many argue if Congress should establish the basic rate of fixed telephony.
An article in Elsalvador.com remarks that "economic analysts and representatives of the private sector argue that lawmakers shouldn't regulate prices, as they intend to do with a decree to lower the basic fee for fixed telephony. Manuel Enrique Hinds considers the Assembly should not be lowering or increasing rates, as that is one of the functions of the Telecommunications Superintendence".
The Superintendency of Competition in El Salvador has pointed out that the businesses MOLSA and HARISA are still forging agreements on sharing the market, having been previously sanctioned for the practice.
Six years after being punished for engaging in anticompetitive practices, the companies MOLSA and HARISA are again under scrutiny by the competition regulator, whose head submitted documents "... as evidence of an agreement established by the two companies to share the wheat market in El Salvador. "
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