Millions In Fines Handed Down To Telecommunications Companies For Anti-Competition Practices

Four telecommunications companies were reported for engaging in anticompetitive practice will have to pay ¢ 119 million each, according to determined by the Commission to Promote Competition (COPROCOM).

Sanctioned firms are: Ericsson, Costa Rica S. A.,. Huawei Technologies Costa Rica S. A. Continental Import & Export Continex S. A. and Nokia Siemens Networks SA Costa Rica.

According to a notice of COPROCOM, these companies agreed the abstention for the competition in an administrative contracting Costa Rican Electricity Institute (ICE), if not modified the terms of the cartel.

According to the Commission Executive Director, Ana Victoria Velasquez, this is an action to force the ICE to improve incomes and benefits of the contract.

These practices, according to Law No. 7472, Promotion of Competition and Effective Consumer Defense, are prohibited and punishable by fines.

For this reason was sentenced to pay a fine of ¢ 13 million to the representatives of three of the companies mentioned.

The money raised will go to the box only the state, not the institution that was injured-ICE, said Velasquez.

However, this is not a penalty on tight, and companies may submit along this week the application for reconsideration before the Commission.

Meanwhile, ICE declined to make any declaration. And two of the four defendant companies, Ericsson and Nokia Siemens did not want to give comments.

The other two, Huawei Technologies and Continental Continex not even offered an answer.

The origin of the case ascends to 2008, during the tendering process of a third-generation wireless system, known as “Project Advanced Mobile System”, in which eight companies were interested.

ICE complained about the conduct of companies now sanctioned, after said in a joint note, the inability to offer if not modified the terms of the direct recruitment.