El Salvador: Alba Petróleos Investigation Starts

The superintendency of competition has began the investigation into alleged anti-competitive practices by Alba Petroleos.

Friday, July 19, 2013

"After analyzing the formal request by the National Association of Private Enterprise (ANEP) (February 5), the Superintendence of Competition has launched an official investigation (February 13, 2013), with the intention of determining whether Alba Petroleum had or had not violated the Competition Act through merging its businesses," noted an article in Elsalvador.com.

Francisco Diaz, Superintendent of Competition, confirmed that the company "failed to seek permission before performing certain operations which constitute alleged economic concentrations (acquisitions and mergers)."

"From preliminary proceedings sufficient evidence has arisen indicating the existence of such practices, therefore a sanctions proceedings have started, and at the same time the operator has been informed that it will be investigated for alleged commission of certain anti-competitive practices or violation the law," he said.

According to the Superintendence of Competition, in the documentation submitted by Alba Petroleum, five operations were found that could meet the criteria established in the law on concentrations. "These would be economic transactions between affiliated parties which would have to have exceeded the monetary thresholds set out in Article 33 of the Act," said Diaz.

Now, Alba Petróleos has 30 days to exercise its right to defense, beginning on July 18, after that there will be 20 working days of investigations after which the Advisory Board will decide whether or not there has been a violation of the Competition Act.

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