Perinversiones S.A. de C.V. completed the purchase of the majority stake in Banco Azteca El Salvador.
At the end of last month, the Superintendency of Competition of El Salvador informed that the application presented by those involved for the purchase of 100% of the capital stock of Banco Azteca by the company Perinversiones and nine natural persons had been admitted, authorizing this economic concentration on Wednesday, May 22, 2019.
In El Salvador, the Ministry of Economy drafted a bill to regulate the commercialization and importation of devices not compatible with digital television, but the Superintendence of Competition failed to endorse it.
At the end of 2018, the country began its transition to digital television, since the state-owned TV channel Canal 10 began broadcasting the open digital signal, and it was reported that in the next three years it will have to be implemented by private TV stations.
A study by the Superintendency of Competition highlights concentration in the market for broadcast TV and suggests accelerating the transition to digital in order to incorporate new operators.
The full report has not yet been released by the Superintendency of Competition (SC), but it has been revealed that the main point is the strong concentration in the market, which could be reduced if it faster progress is made in moving towards a scheme of digital television, allowing the entry of more operators. One alternative is to reserve part of the spectrum for the entry of future operators.
Maritime industries say that if the new rates requested by the Autonomous Executive Port Commission are approved, logistics costs will increase by 16%.
The current tariff was established in 2005 but when it comes time to paying at the counter this rate increases because of additional charges, it is for that reason that the Superintendency of Competition (SC) through means of a study is proposing a revision and update of the existing rates, adding in these elements.
A suggestion has been made to establish flat rates abroad and attract more port services companies in order to eliminate the concentration that exists today.
From a statement issued by the Superintendency of Competition in El Salvador:
The consultant Edgardo Gamarra, a specialist in competition and in the field of maritime port services, today introduced the "Study of the Conditions of Competition in the Maritime Port Sector in El Salvador" requested by the Superintendency of Competition. The Governing Board of the institution will analyze these results and then issue a resolution with recommendations to promote competition in this sector.
An agreement is being established to promote the arrival of new airlines into the country streamlining the processes of registration and starting commercial operations.
The Superintendency of Competition and Civil Aviation has signed an agreement designed to promote competition in the airline market in the country, streamlining and simplifying the formalities the must be completed in order to start operations.
The rise in price in a market with short supply is the reason for the suspension of three months of the granting of export health certificates for the 'seda" variety of red bean.
From a statement issued by the Ministry of Economy (MINEC):
Joint Action Plan to counter rising prices in beans.
In the framework of its powers and the joint action of the National Consumer Protection, the Ministry of Agriculture and Livestock (MAG), the Ministry of Economy (MINEC) and the Consumer Advocate, have activated a joint action plan which will be effective from Thursday May 15, containing dissuasive and contingent measures against the rising price of beans which has been seen in some markets in the country.
The auction of 40 MHz of electric spectrum will be rescheduled while appeals filed by two interested companies are reviewed.
The Superintendency of Electricity and Telecommunications (Siget) has 20 working days to determine whether to reschedule the auction of 40 MHz of spectrum for mobile telephony. This was established by a resolution of the Board of the entity.
After suspending it for a second time, the Superintendency of El Salvador is consulting with operators over the tender for the radio spectrum for mobile telephony.
Luis Mendez, chief of the General Superintendency of Electricity and Telecommunications (SIGET), explained that they are resolving and organizing a series of hearings with telephone operators and according to the agreement they reach with the parties, they will decide whether to resume or delay the process longer.
The Superintendency of Competition has asked to review the process of not limiting the participation of companies.
From a press release bythe Superintendency of Competition (SC):
The Board (CD) of the Competition Superintendence (SC) has issued an opinion on the bidding process for the supply of 300 MW of firm capacity and associated energy. The Superintendent noted that the tender conditions contain some measures that could limit the number of potentially interested parties in participating in the bidding process.
The company was fined $759,924 for failing to petition the Salvadorian Superintendency of Competition to approve to purchase of nine service stations.
In addition to the financial penalty, the Superintendencia de Competencia (SC) demanded that the company submit within 30 days an application to follow the procedure which should have been done in the beginning.
The auction of 40 MHz of mobile spectrum has launched a discussion on whether to add new operators to the market in order to avoid dominant players.
According to Giovanni Berti, CEO of Proesa, companies have already begun to enter the contest. "The information I have is that in addition to the phone companies that are already established in the country, to date an international company whose name I'm not allowed to reveal yet has expressed interest," he said.
The Superintendency of Competition believes that auctioning 40 MHz creates disadvantages for new entrants who want to enter the mobile phone market.
From a press release by the Superintendence of Competition in El Salvador:
The Board of Directors of the Superintendence of Competition has recommended to the General Superintendency of Electricity and Telecommunications (SIGET) that the auction of 40 MHz of radio spectrum recently announced should include the participation "only [of] new entrants who are not associated with any mobile operator presently in market. This is to promote competition between agents being equal and ensure the chances of increasing the number of competitors in the market, generating dynamism and competition. Failing the above, the auction will be suspended. "
There has been a favourable response to the bill establishing an open skies policy based on reciprocity with states and airlines.
From a press release by the Legislative Assembly of El Salvador:
The Commission of Public Works, Transport and Housing of the Legislative Assembly, reached a favourable ruling regarding the reform to the Civil Aviation Act, to establish in the country a "Open Skies Policy" and create greater competitiveness in the airlines market with fares which are more accessible to users.
The Salvadoran Justice system has upheld the fines imposed on electricity distributors and Digicel by the competition regulator.
"The Administrative Litigation Division of the Supreme Court of Justice (CSJ) ruled in favor of the Superintendency of Competition (SC) in two cases: one in which the existence of anticompetitive practices by electricity distributors CAESS and AES CLESA was determined, and the other at the opening of a sanction process against Digicel, for lack of cooperation ", reported Elmundo.com.sv.
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