In 2009, the Competition Superintendence (CS) sanctioned 8 economic agents with fines amounting more than 50 thousand dollars, authorized 1 merger, carried out 3 sector studies on competition conditions, and issued over 30 public policy recommendations to improve and promote competition conditions in the country, increase economic efficiency as well as consumer welfare.

1. Press Release C. 56-09
El Salvador, December 17th, 2009.
Annual Work Report
2009 CS Achievements Report
In 2009, the Competition Superintendence (CS) sanctioned 8 economic agents with fines
amounting more than 50 thousand dollars, authorized 1 merger, carried out 3 sector studies
on competition conditions, and issued over 30 public policy recommendations to improve
and promote competition conditions in the country, increase economic efficiency as well as
consumer welfare.
The CS achieved important results in 2009, through the investigation and
“The year 2009 has been a sanction of anticompetitive practices, the analysis of mergers and acquisitions in
period of significant activity different economic sectors, the constant study of the competition conditions on
for the CS. The investigation various sectors, and the promotion of competition in the public opinion. The
of anticompetitive practices aforementioned achievements of the CS during 2009 are set forth below.
and the promotion of a
competitive environment in • Cases and Fines
the country have been
crucial achievements. The In 2009, the CS imposed fines totaling US$50,668.10. Four travel agencies
CS intensified the fight were sanctioned with fines amounting US$21,325.50 for bid rigging in public
against agreements amongst tenders for the purchase of airline tickets in the public sector.
competitors in public
tenders. The commitment to Furthermore, the CS concluded 7 administrative sanctioning proceedings
work in favor of competition against 4 economic agents who did not supply information in the investigation of
for the benefit of consumers anticompetitive practices in the telecommunications market. Said fines total
and economic efficiency will US$29,342.604.
be pursued again in 2010”,
indicated the Competition In addition, the CS received and analyzed 2 complaints which were ruled out,
Superintendent, Jose due to the fact that said complaints did not comply with hypothesis established
Enrique Argumedo. in the Competition Law. With respect to case investigations, the CS monitored
activities such as: the exclusive TV transmission of the National Mayor Soccer
League games; the transmission of the Spanish Soccer League games; the
relation between airlines and travel agencies; and the import of pharmaceuticals
used for the treatment of Influenza A H1N1.
• Activity in the Judiciary System
The CS issued 30 requirements to the Salvadoran General Attorney, requesting to collect the fines imposed to
different sanctioned economic agents.
During 2009, the CS filed 42 reports and writs with the tribunals of the Justice Supreme Court. Thirty six of them
were filed with the Administrative Contentious Tribunal and 6 with the Constitutional Tribunal. By means of four of
said reports, the CS presented technical, legal, and economic arguments to justify the legality of the decisions of
the Board of Directors (BD) of the CS. Nine reports confirmed the existence of the appealed resolutions.
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2. Four reports contained the final allegations prior to sentencing. The remaining 25 writs contained other requests
and considerations.
• Mergers and Acquisitions
In 2009, the CS reviewed 13 merger/acquisition authorization requests. Only one of said requests was authorized
(the operation amongst “Inversiones Financieras Citi”, “Banco Citi”, and “Citi Info Centroamérica”). Six of the
aforementioned requests were declared unsuitable due to the fact that these operations did not need prior
authorization from the CS (including the TACA/AVIANCA operation).pursuant to the Competition Law. Two
requests were declared inadmissible because they did not comply with the formalities to file this type of requests.
Finally, one request was overruled due to lack of information and three are still been reviewed (amongst these is
the one related to the purchase of Shell El Salvador).
• Sector Studies on Competition Conditions
The CS carried out 3 sector studies on competition conditions in 2009.The sectors studied were rice, fertilizers,
and fluid and powder milk. In addition, the studies on the cheese and iron sectors are in process. In 2010, the
study on the competition conditions of the credit and debit cards sectors will be reassumed.
During 2009, the prices of products such as: fertilizers, rice, fluid and powder milk, beans, and the basic food
basket were monitored.
• Recommendations y Opinions
Public Policy Recommendations: Thirty four public policy recommendations were issued, which were
addressed to 8 governmental institutions.
From the aforementioned recommendations, 20 resulted from sector studies on competition conditions. Five of
them resulted from monitoring activities or prior investigations. Nine recommendations resulted from the
investigation of anticompetitive practices. In some cases, the same recommendations were addressed to more
than one institution, due to the fact that they are related for their enforcement. A chart with the recommendations
issued by the CS in 2009 is set forth below:
Recommendation Recommendation resulted Sector or Market Number of
addressed to: from: recommendations
Ministry of Agriculture and Sector study on competition Rice, fertilizers, fluid 18
Livestock conditions and powder milk
Ministry of Finance Sector study on competition Rice 2
conditions
Ministry of Economy Sector study on competition Rice and fertilizers 8
conditions
Ministry of Public Health Sector study on competition Fluid and powder milk 3
and Social Assistance conditions
Salvadoran Soccer Monitoring activity or prior Open television 4
Federation investigation
Civil Aviation Authority Monitoring activity or prior Travel agencies 1
investigation
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3. General Superintendence Case analysis of an alleged Telecommunications 4
of Electricity and anticompetitive practice
Telecommunications
Vice Ministry of Case analysis of an alleged Public transportation of 5
Transportation anticompetitive practice passengers
Opinions on Legal Framework: 6
A. To the draft of the Credit Cards System addressed to the Legislative Assembly;
B. To 3 technical regulations on pasta, premixed cement, and fluorescent lamps issued by the National
Science and Technology Council;
C. To a draft of a postal remitances project of El Salvador´s Mail System; and,
D. As a follow-up of the preliminary conclusions of the “Regional Study of Air Transportation of Passengers”.
The BD of the CS issued an opinion with recommendations to the Civil Aviation Authority on the Civil Aviation
Organic Law and applicable regulations, by means of the resolution RC-AE-04/2009, dated April 21st, 2009.
Opinions on public tender processes: 3
A. Long term contracts through proceedings called by the “Compañía de Alumbrado Eléctrico de San Salvador
S.A. de C.V.”;
B. Public tender documents issued by Executive Port Commission: “Contracting Companies to Provide Labor
Force and other Resources to the Executive Port Commission, in order for Port of Acajutla to Render Services
during the Period Starting on January 1st, 2010 until December 31st, 2010”; and
C. Policy to be applied to public tender processes of the Salvadoran Social Security Institute.
• National and International Cooperation and Coordination Agreements
3 national: Customs, Consumer Protection Authority, and renewal with the Civil Aviation Authority;
3 international: Fiscalía Nacional Económica of Chile, Instituto Nacional de Promoción de la Competencia of
Nicaragua, and the renewal of the agreement with the Tribunal de Defensa de la Libre Competencia of Chile;
2 Academic Sector: Agreement renewal with the Escuela Superior de Economía y Negocios and with the
Universidad Centroamericana “José Simeón Cañas”.
Furthermore, the Internship Program was broadened to include students of any career studying at universities
with which the CS has subscribed an agreement and to give the possibility of executing their social work at the
CS.
• Central American and International Activity
Competition Policy Working Group in the Central American Integration
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4. Five meetings and nine video conferences took place. Three Central American Bulletins were published. The
study of the competition conditions of the pharmaceutical sector was initiated with the non refundable cooperation
of the Interamerican Development Bank for the Regional Public Goods Project. In addition, the Regional Training
Program was carried out by the Federal Trade Commission of the United Stated of America.
Active Participation in Forums: Tenth Session of the Intergovernmental Experts Group in Competition Law and
Policy, Central American Competition Forum, Competition Global Forum (OECD), Latin American Competition
Forum, Ibero American Competition Forum, and the ICN Seminar on the Agencies Effectiveness.
Participation in Trade Negotiations and Training:
3 Negotiation Rounds: Negotiation Round of the Canada - CA4 Free Trade Agreement; VI Negotiation Round of
the Central American – European Union Association Agreement; and, Reduced Negotiation Round of the Central
American – European Union Association Agreement.
4 Central American Coordination Rounds: 2 Central American Coordination Meetings with respect to the
Central American – European Union Association Agreement and 2 Central American Coordination Meetings with
respect to the Canada - CA4 Free Trade Agreement.
National Training carried out by International Consultants: 23 activities with the Justice Supreme Court the
Salvadoran General Attorney´s Office, Customs, National Registries Center, National Judicial Council, General
Superintendence of Electricity and Telecommunications, universities, and thinking tanks.
Participation in International Training: 9 international organizations forums and seminars.
The international activity carried out by the CS includes the renewal of the program “Strengthening Institutions
and Capacities in the Areas of Competition Policy and Consumer Protection” (COMPAL II), for competition
advocacy activities to complement those executed in the first stage of said program.
Additionally, the Interamerican Development Bank provided non refundable financial resources for pre investment
projects called “Regional Public Goods Project”, presenting the proposal “Development of the Regional
Competition Policy”. The Central American countries, including Panama, are the project´s beneficiaries and the
CS has been designated to execute said project.
• Special Events
The CS launched the following manuals: “Let´s Learn about Competition” and “Detecting and Preventing Bid
Rigging in El Salvador”, as well as a new web site www.sc.gob.sv, and the board discussion “Challenges and
Defiances of the CS”.
• More Competition Advocacy Activities
The CS has carried out 74 informative presentations. A space in Facebook has been created for the CS, which
currently has 1,300 registered users. The CS has produced the following institutional publications: “White Book”
or “Libro Blanco”, which contains procedural amendments to the Competition Law; the manuals “Let´s Learn
about Competition” and “Detecting and Preventing Bid Rigging in El Salvador”; 2006-2009 Recompilation of
Public Policy Recommendations; Recompilation of Articles and Essays written by the CS. Besides, the CS has
made the necessary contacts to gain presence in a newspaper with nationwide readers, in a specialized
magazine, and in a virtual media to publish essays and articles on Competition Law topics, free of charge.
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