Uber, Competition and the Free Market

In El Salvador reform of legislation on passenger transport has been proposed to "incorporate business models based on new telecommunications technologies."

Monday, September 18, 2017

From a report by the Superintendency of Competition in El Salvador:

The Board of Directors of the Superintendency of Competition (CD) issued an opinion on land transport regulations, in relation to the provision of passenger transport services required by users through the use of digital platforms.

The opinion of the CD indicates that the sectoral regulations do not contain rules that allow the incorporation of business models based on new telecommunications technologies, as in the case of digital platforms through which it is possible to require transport services.

Platforms in operation since this year in El Salvador, such as Uber and Vamos, are disruptive innovations that redefine the passenger transport market, which requires an evaluation of the applicable regulations from the perspective of competition.

Read full report (in Spanish).

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