In 2008, the Competition Superintendence (CS) achieved the goals established and organized according to priorities in its Operational Plan 2006-2010. The CS has been active in promoting competition and enforcing the Competition Law, ordering the immediate reestablishment of competition conditions in favor of a more competitive environment and for the consumers´ welfare.

1. Press Release C.64-08
El Salvador, December 19th, 2008
Annual Work Report
Third year of achievements of the CS
In 2008, the Competition Superintendence (CS) achieved the goals established and organized according
to priorities in its Operational Plan 2006-2010. The CS has been active in promoting competition and
enforcing the Competition Law, ordering the immediate reestablishment of competition conditions in favor
of a more competitive environment and for the consumers´ welfare.
The CS achieved the foreseen goals regarding competition advocacy, carrying out
“In 2008, the CS achieved the promotion activities, creating awareness in the public opinion and in governmental
goals established and
organized according to
entities, as well as profoundly concentrating, during its third year of operations, in
priorities in its Operational enforcing the Competition Law (CL), which consists in the investigation and
Plan. It also satisfactorily sanctioning of anticompetitive practices, as well as a preventive focus authorizing
approved, pursuant to mergers and acquisitions in different sectors of the economy.
international standards, the
OECD exam on Competition In 2009, the CS shall continue its work in competition advocacy in order to develop
Law enforcement, to which the and consolidate a true competition culture in the country. In the enforcement area,
CS voluntarily submitted. In the CS shall focus its efforts in public biddings in order to determine the existence of
2009, the CS shall focus its competition conditions in those proceedings and shall prepare the “White Book” (in
efforts in public biddings in
order to determine the
Spanish, Libro Blanco), containing the necessary reforms to improve the
existence of competition enforcement of the CL, based on the recommendations resulting from the OECD
conditions in those exam and those identified when confronting the legal framework to reality, which will
proceedings and shall prepare be adopted at different levels and time periods. This proposal shall be presented to
the “White Book” (in Spanish, the President of the Republic for his consideration.
Libro Blanco), containing the
necessary reforms to improve Following is a detail of the goals achieved, in 2008, by the CS in the aforementioned
the enforcement of the CL, working areas:
based on the
recommendations resulting
from the OECD exam and Enforcement of the Competition Law
those identified when
confronting the legal
framework to reality, which will Cases of anticompetitive practices
be adopted at different levels processed in 2008
and time periods and shall
continue its work in
competition advocacy in order
to develop and consolidate a
true competition culture in the
country”, asserted the
Competition Superintendent,
Celina Escolan Suay.
In process Finalized Finalized
Complaints Ex-officio
investigations
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2. Administrative level
The CS substantiated 3 cases for anticompetitive practices. One of them was finalized (cartel in the wheat flour
market) and the other two are still in process (abuse of dominance in the telecommunications market).
Likewise, the CS received 4 complaints which were declared
unfounded because they did not fit in the profiles determined in Anticompetitive practices
the CL. under investigation in 2008
Agreements amongst
competitors
The agreement amongst competitors case initiated ex-officio in (Art. 25 CL) Agreements amongst
non-competitors
April with a search with prior judicial authorization of 2 economic Not typified (Art. 26 CL)
agents, finalized in October with a fine of US$4,032,672.10
imposed on both agents.
Abuse of
At the closing of the year, the CS initiated 7 sanctioning dominance
(Art. 30 CL)
proceedings against 4 economic agents for failing to supply
information in an investigation of anticompetitive practices in the
telecommunications market.
The CS also imposed one fine to an economic agent for failing to supply the requested collaboration during the
preparation of a market study of the sugar industry.
Mergers and acquisitions Merger and acquisition authorization requests
resolved in 2008
In 2008, the CS processed a total of 14 merger and Desisted
acquisition authorization requests. Two were authorized request
(AES NEJAPA GAS – BIOENERGÍA, AMNET, and Authorized
MILLICOM), 10 were declared unfounded, 1 inadmissible, requests
Unfunded
and 1 desisted. requests
Not admitted
request
Jurisdictional level
In 2008, the CS filed a total of 25 reports and writs with the Contentious Administrative Chamber (in Spanish, Sala de
lo Contencioso Administrativo) of the Supreme Court of Justice, defending with technical, legal, and economic
arguments its resolutions, in two cases (fuel) and repeating, in others, the need to revoke the precautionary
measures imposed, because they harm the market and the consumers.
The CS has requested the Attorney General (in Spanish, Fiscal General de la República) in nine different occasions
to collect the fines imposed to various sanctioned economic agents.
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Antiguo Cuscatlán, El Salvador.
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3. Competition advocacy
Market studies: Finalized. Pharmaceuticals phase II and sugar. In process: rice and fertilizers.
Price follow ups: poultry, eggs, beans, wheat flour, and goods that use it as input.
Opinions:
10 on laws and regulations drafts: ports, pharmaceuticals, hydrocarbons, and electricity.
16 on public acquisition procedures: ports, electric, pharmaceuticals, and services.
Public policy recommendations:
Resulting from studies: 29 recommendations
Public policy recommendations issued in Public policy recommendations issued in
2008 resulting from studies per sector 2008 resulting from studies per institution
Ministry of Public
Telecommunications Health and Social Presidency of
Assistance the Republic
General
Ministry of Superintendence of
Economy Electricity and
Telecommunications
Pharmaceuticals
Poultry Ministry of
Agriculture
Liquid Consumer
Sugar
Petroleum Gas Protection
Superior Council Salvadoran Council
of Public Health of the sugar industry
2
7%
Resulting from opinions on laws and regulations drafts y public acquisition procedures: 37 recommendations
Public policy recommendations issued in 2008 Public policy recommendations issued in 2008
resulting from opinions per sector resulting from opinions per institution
Ministry of Ministry of
Services National Lottery Ministry of Finance National Defense
for Social Welfare Education
of El Salvador
Ministry of Public
Health and Social
Salvadoran Assistance
Institute of
Social Security
Ministry of
Labor and
Supreme Court
Pharmaceuticals Social Welfare
of Justice
Autonomous Presidency of the
Executive Port Republic
Commission
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4. National and international Cooperation and Coordination Agreements
National:
With entities of the Executive Branch: 2 (Ministry of Economy and National Registry Center) y
With the Academia: 1 (School of Communications “Mónica Herrera” (in Spansich, Escuela de Comunicación
“Mónica Herrera”)
International: 1 (Agreement with the Comisión para Defensa y Promoción de la Competencia of Honduras).
Support amongst institutions: (Presidential Commission for the Analysis of the Concession of Ports Acajutla and
La Unión (in Spanish, Comisión Presidencial para el Análisis de la Concesión de los Puertos de Acajutla y La Unión).
International and Central American activity
Work Group on Competition Policy in the Central American Integration (in Spanish, Grupo de Trabajo de
Política de Competencia en la Integración Centroamericana):
1 presential meeting, 4 videoconferences, 3 Central American, and 1 regional study on passenger air
transportation under the coordination of CEPAL.
The II Central American Competition Forum took place during the activities of the 2008 Competition Week.
Active participation in forums: OECD Global Competition Forum, VII ICN Annual Conference, IX Session of the
Intergovernmental Experts Group (IGE) on Competition Law; VI Latin American Competition Forum, and V Ibero
American Competition Forum.
Training by international consultants: 7 seminars
Commercial negotiations: 3 negotiation rounds and 3 Central American coordination meetings regarding the
Association Agreement Central America - European Union.
Especial events
a) Launch of the OECD Competition Evaluation Kit. The CS presented the “OECD Competition Evaluation
Kit”;
b) Exam on El Salvador´s Competition Policy and Law. The CS voluntarily submitted to said exam and
successfully approved it.
c) Launch of the book “The State monopolies, monopolistic practices, and the State´s income in El
Salvador”, (in Spanish, “Los estancos, las prácticas monopólicas y las rentas del Estado en El Salvador”),
book about social and economic history (1524 a 2008). The CS donated the copyrights of the second version
of said book to the Salvadoran National Commission for Culture and Arts, (in Spanish, CONCULTURA),
together with the first edition of the aforementioned version, containing 1,300 copies for its sale to the public.
This book has been incorporated in the collection of CONCULTURA “Salvadoran History Library”, (in
Spanish, “Biblioteca de Historia Salvadoreña”), as volume number 20.
Promotional activities. 74 presentations within the competition advocacy program to audiences such as private
enterprise, non-governmental organizations, academic community, associations, and governmental institutions.
Edificio Madreselva, Primer Nivel, Calzada El Almendro y 1ª Avenida El Espino, Urbanización Madreselva.
Antiguo Cuscatlán, El Salvador.
Conmutador (503) 2523-6600, Fax (503) 2523-6625 Comunicaciones (503) 2523-6616