According to the technical, legal and economic analysis carried out, it was warned that the acquisition would result in limitations to competition in the markets for mobile and fixed telephony and business connectivity services. Therefore, the Board of Directors of the Superintendence of Competition (CDSC) decided to impose a set of conditions to repair the damages, which include enforcement measures prior to the closing of the transaction (ex ante) and a series of subsequent obligations (ex post) in order to counteract such limitations, informed the Superintendence of Competition (SC).

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From the SC's statement:

August 18, 2020. The Board of Directors of the Superintendence of Competition (CDSC) conditioned by majority the approval of the economic concentration in which America Movil, owner of the CLARO brand, seeks to buy the share capital of Telefonica Moviles El Salvador and Telefonica Multiservicios (MOVISTAR), currently owned by Telefonica Centroamérica Inversiones. If CLARO complies with the conditions, it may execute the purchase, otherwise it will be deemed to have been denied. Compliance with the conditions imposed by the SC is required for the concentration to be carried out and to allow competition to be effectively maintained in the sector.

According to the technical, legal and economic analysis carried out, it was warned that the acquisition would lead to limitations on competition in the markets for mobile and fixed telephony and business connectivity services. Therefore, the CDSC decided to impose a set of conditions to remedy the damages, including pre-closing (ex-ante) enforcement measures and a set of post-closing (ex-post) obligations to counteract such limitations.

Through its decision, the CDSC seeks to restore the competitive pressures lost as a result of the merger, to protect the welfare of consumers and to ensure that levels of competition in the market are not reduced with the exit of MOVISTAR (which generated significant competitive pressures in various telecommunications services).

Read full article (In Spanish).

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