Telephone Companies Fined for Anti-Competitive Practices

The Superintendency for Competition in El Salvador has sanctioned four telephone companies for agreeing jointly to a single fee for the provision of one of their services.

Friday, January 20, 2012

The Board (CD) of the Superintendencia de Competencia (SC) fined Telemóvil, Telefonica, Digicel and Intelfon a total of $1,215,497.94 for agreeing to jointly fix the rate of $ 0.21 plus VAT per minute for calls from the traditional local phone network to a mobile phone.

"This is a serious anti-competitive practice, performed on a public service with little options for alternatives for the end user affected by the agreement, with the intention to apply it across the country and performed by operators with a dominant position in their mobile networks", said Francisco Diaz Rodriguez, Superintendent of Competition.

The agreement between these four competitors in the mobile market violates letter a) of Article 25 of the Competition Act which prohibits agreements between competitors: It prohibits ‘anticompetitive practices carried out among competitors which, among other things, take the following forms: a) Establishing agreements to fix prices or other conditions of purchase or sales in any form’

The fine for Telemóvil is $658,050;, Telefónica was fined $260,672, Digicel $233,909, and Intelfon $62,866.

More on this topic

El Salvador: Ruling in favor of Free Competition

November 2016

The Supreme Court has ruled in favor of the Superintendency of Competition in the case brought against them by Telefónica, claiming the alleged illegality of a resolution which sanctioned an agreement between competitors in December 2011.

From a statement issued by the Superintendency of Competition in El Salvador:

El Salvador: Telecoms Incur Fines for Anticompetitive Practices

November 2015

Digicel, Telefonica Moviles El Salvador, CTE, CTE Telecom Personal and Telemóvil El Salvador filed appeals against the $2.2 million fine imposed on them for abuse of their dominant positions.

From a statement issued by the Superintendency of Competition:

The five telephone operators punished for abusing their dominant position submitted an appeal to the Board of Directors of the Superintendency of Competition on 4 November.

El Salvador: Telecoms Companies Fined For Anticompetitive Practices

October 2015

Digicel, Telefonica Moviles El Salvador, CTE, CTE Telecom Personal and Telemóvil El Salvador were fined $2.2 million for abusing their dominant position to impede the entry of new competitors.

From a statement issued by the Superintendency of Telecommunications:

SC sanctions telecoms companies for abusing dominant position:

Price Fixing in Mobile Phone Companies Prevented

September 2011

The Costa Rican regulator has prevented telephone companies Telefónica and ICE from agreeing on tariffs for end users within a contract for interconnecting their networks.

The company Claro filed a complaint to the Superindendency of Telecommunications (Sutel), which stated that the access and interconnection agreement signed between the Instituto Costarricense de Electricidad (ICE) and Telefónica, contained clauses where both companies agreed not to charge prices below the cost of services provided, considering the interconnection charges as a cost common to both.

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