Economic concentration between America Movil and Telefonica in El Salvador is declared ‘inadmissible’ again

Salvadoran Competence Superintendence (SC) declared the economic merger request presented by America Movil as ‘inadmissible’, aimed at acquiring the necessary share capital to control Telefonica’s operations in El Salvador. The resolution was pronounced by the entity on Monday, August 26th, and the economic agents involved were notified on Wednesday, August 28th.

America Movil submitted this second request on Thursday, June 27th. From then on, SC began to evaluate de submitted documentation to determine the request admissibility, or if more information from the involved companies was needed to learn about the operation, according to what is established on the Competition Law (articles 18 to 32), and its Regulations (articles 18 to 32), as well as establishments from the Administrative Procedures Law.

After checking the submitted documentation, on July 22nd, the SC notified America Movil and warned it on the need to complete certain information the entity considered necessary to know the background of the operation, according to  what is required by the Law. As reported by the Salvadoran organization, the entity works with the Competition Law (LC), which establishes the necessary requirements for any economic concentration request, specifically on article 33, and on it’s regulations article 35. In addition, LC allows to request any other additional information necessary to know about the transaction, according to each case.

According to the entity, the SC decided not to make the request admissible on August 26th, ‘after America Movil did not complete the information provided within the granted period’. On September 2nd, both America Movil and Telefonica rejected to appeal against the inadmissibility decision, and that is why SC determination took place. SC also clarified that the inadmissibility does not inhibit the companies from submitting a new application, once they have completed the necessary information to know about the concentration and required by the Competition Law and its Regulations.