Food Company Punished

Due to failing to provide on time the information and documentation required to carry out a study on the beef market in the country, in El Salvador the Superintendence of Competition sanctioned Sukarne.

Friday, October 19, 2018

From the statement of the Superintendence of Competition:

October 18th, 2018. The Board of Directors of the Superintendence of Competition (CDSC) sanctioned SUKARNE, El Salvador S.A. de C.V. with a $16,425.18 [1] fine for failing in its cooperation duty by not providing in a timely manner, the information and documentation required in the "Study on the Conditions of Competition in the Beef Market in El Salvador" conducted by the institution.

The Superintendence of Competition (SC) made the first request for information to SUKARNE on August 17th, 2017 and, after three additional deadlines given to comply with the requirements, on August 18th, 2018 provided a final opportunity, which expired on the 30th of the same month, without SUKARNE had declared on that date, thereby configuring the crime established in Article 38, paragraph 6, of the Competition Law (LC).

The CDSC found that the damage caused by not delivering the requested information on time is important and irreparable in the analysis and in the results of the study for which the information was required, given that it delays its conclusion and forces an unnecessary waste of the Superintendence’s resources, affecting the efficient execution of the taxpayer's resources.

SUKARNE obstructed the functions of this institution and interfered with the analysis of essential and relevant information for the Study, specifically, that related to the characterization of the beef market, being the only agent of those consulted that did not provide the information. Article 13 (c) of the LC empowers the SC to supervise and control the market through sectoral studies. The law also gives it the power to request, in any format, the information or collaboration it considers relevant for carrying out its functions, where collaboration is obligatory, according to art. 50.

The refusal of the sanctioned agent, according to the jurisprudence of the Constitutional Chamber [2], also represents an obstacle to the principles on which the country's economic public order is based, in accordance with Article 110 of the Constitution.

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