Telefonica Purchase: New Application Accepted

With the admission of a new procedure for the authorization of economic concentration, presented by América Movil and Telefonica de El Salvador, begins "the technical, economic and legal analysis that will determine whether or not the transaction will cause a significant limitation of competition."

Thursday, November 7, 2019

Both companies submitted this third application for authorization on 19 September this year. From that date, the Superintendence of Competition began a new evaluation to assess the admissibility of the application or the need for the two applicants to complete the information in the file, according to official information.

From the Superintendence of Competition statement:

The admission marks the beginning of the analysis of the effects that the transaction would have on the telecommunications markets in El Salvador, with which the Superintendence must determine whether it will cause a significant limitation of competition.

Wednesday, November 6, 2019. The SC admitted for processing the request for authorization of economic concentration presented by América Móvil and Telefónica de El Salvador, initiating the technical, economic and legal analysis that will determine if the transaction will provoke or not a significant limitation of competition, in the terms of art. 34 of the Competition Law (LC).

Both companies submitted this third request for authorization on September 19 of this year. As of that date, the SC began a new evaluation to assess the admissibility of the application or the need to complete the information in the file by the two applicants, as established by the LC (articles 31 to 36) and its Regulations, RLC (articles 18 to 32), and the Law of Administrative Procedures (LPA).

Read full statement (In Spanish).



More on this topic

El Salvador: Telefonica's Purchase Conditioned

August 2020

One of the conditions for authorizing the acquisition is that America Movil must relinquish the right to operate 25 MHz of radio spectrum with national coverage in the 850 MHz band and 30 MHz of radio spectrum with national coverage in the 1900 MHz band, which currently belong to Telefonica.

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).

Telefonica's Purchase: Is the Third Time the Winner?

October 2019

After rejecting the two previously filed applications, El Salvador's Superintendence of Competition confirmed that it had received a new request for América Móvil to complete the acquisition process of Telefónica.

In mid-September 2019 it was reported that the Superintendence of Competition of El Salvador declared inadmissible, for the second time, the request for authorization of economic concentration presented by América Móvil, arguing that the information in the file was not complete.

Telefonica's Purchase Declared Unacceptable Again

September 2019

The Superintendence of Competition of El Salvador once again declared "inadmissible the request for authorization of economic concentration presented by América Móvil, which would consist of the acquisition of the share capital necessary to control Telefónica's operations."

Once again, the purchase of the telephone company in El Salvador is declared inadmissible, since at the end of May, the authorities informed that they also declared "inadmissible the request for economic concentration presented by América Móvil S.A.B. de C.V., last March 5 of this year."

Acquisition of Telephone Company Declared Unacceptable

May 2019

In El Salvador, the Superintendence of Competition reported that "it has declared inadmissible the request for economic concentration presented by América Móvil S.A.B. de C.V., on March 5 of this year."

"When a new application for authorization is submitted, the SC will continue this process on the basis of a technical, legal and economic analysis, under the principle of independence that the LC mandates and distinguishes its actions, with the sole objective of protecting and ensuring competition in the country," reported the Superintendence of Competition (SC).