Press Release
C. 16-13 th
El Salvador, August 13 , 2013.
CS presents Competition Law amendments to Legislators In May of the current year, a draft of necessary amendments to the Competition Law (hereinafter, the “CL”), was presented to the Legislative Assembly, after seven and a half years of being in force. The Economic Commission of said Assembly has granted the Competition Superintendent, Francisco Diaz Rodriguez, a hearing to describe the advances in competition pursued by the amendments in order to promote their discussion and approval. “The amendments aim, amongst other things, to generate a clearer legal framework without its existing loopholes, to adapt it better to the Salvadoran economic reality, and to give the Competition Superintendence the tools to strengthen its institutionality”, asserted Francisco Diaz Rodriguez, Competition Superintendent.
The amendment draft seeks to rule necessary and urgent matters to improve the current CL´s enforcement. The amendments aim, amongst other things, to generate a clearer legal framework without its existing loopholes, to adapt it better to the Salvadoran economic reality, and to give the Competition Superintendence (hereinafter, the “CS), the tools to strengthen its institutionality. The aforementioned has been considered in order to attain more efficient investigations and achieve an ample impact as to increase economic efficiency and consumer welfare. This is the second time the CL is amended. The first amendments to the Competition Law were presented and approved in 2007, after one year of being in force. These included dawn raids, precautionary measures, as well as a harsher sanctioning system for the commission of anticompetitive practices, amongst others. Considered as a whole, the amendments presented procure improvements in institutional proceedings; broader range in the combat of anticompetitive practices; and, new subjects to whom the CL shall be applied to. Certain aspects covered by the above cited amendments are: - Including more conducts contrary to competition which are not currently described in the CL;
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Sanctioning the non-compliance of orders to cease an anticompetitive practice or of an obligation related to said orders;
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Creating the possibility to sanction trade associations, professional associations, and associations in general who commit an anticompetitive practice, or suggest or recommend its members to commit one;
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Analyzing a larger number of mergers and acquisitions by reducing the necessary economic thresholds for requiring the CS´ prior authorization;
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Incorporating in the sanctioning procedures, information and evidence gathered in investigations or preliminary actions, strictly respecting due process;
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Executing internal preliminary actions when the complaints offer indications or signs but are not dully sustained;
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Charging certain services currently rendered cost-free (The State currently covers these costs.);
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Amending the Leniency Program: The economic agent who is or has been participating in an anticompetitive practice and is collaborating with the competition authority, was the first one to denounce it, and provides the necessary evidence to prove said illegal conduct, shall be fully exonerated from any sanctions. In May after the amendment draft was officially presented to the National Legislative Assembly, the Competition Superintendence met with the main trade associations and thinking tanks in the country to explain the nature of the proposed amendments. In addition, the CS gave a copy of the aforementioned draft to each political party represented in the Legislative Assembly, offering a meeting to explain them. It is expected that the Legislature expedites the discussion and approval of the aforementioned amendments after having knowledge of the improvements in competition foreseen to be achieved with them. View an explicative table of the http://www.sc.gob.sv/pages.php?Id=1134
above
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Background Date
Event th
November 26 , 2004 st
January 1 , 2006 st June 1 , 2007 th
November 9 , 2007 th May 8 , 2013 th
August 12 , 2013
The Competition Law was approved and with it the Competition Superintendence was created. The Competition Law came into force. The first amendments to the Competition Law were presented to the Legislative Assembly. The first amendments to the Competition Law came into force. The second amendments to the Competition Law were presented to the Legislative Assembly. The CS explains the Competition Law amendment draft to the Economic Commission of the Legislative Assembly.