Page 2 - Bulletin No. 14 - Free Competition

BOLETÍN de Libre Competencia PANAMÁ By: Harmodio A. Cedeño Espinosa
The National Directorate of Free Competition in 2017

National Director of Free Competition

At the end of 2017 it is necessary to take stock of our functions, activities,
executories, research, advocacy, in short, close the year with a review of the
management in 2017 versus the outlook for 2018.

In that sense, the year 2017 led to a series of investigations in various
markets, such as telecommunications, hydrocarbons, medicines, among
others, as well as in public tenders, which led to the opening of 15 new cases
of administrative investigation.

In terms of mergers, ex officio checks were carried out in sectors such as
hydrocarbons and beers and, in addition, a favorable concept was granted to
several commercial transactions such as insurance, airlines and soft drinks.

Regarding the functions of competition advocacy, several focused on public hiring events, in which, for example, it was
requested to modify bidding documents so that the conditions of participation were equal for all economic agents, without no
type of barriers, allowing a greater concurrence of bidders; In the same way, some market studies were carried out, we
participated in Law discussion projects and talks were given to both the university sector and legal professionals.

The feasibility consultation tool was also used, in order to know if a certain practice that is attempted to be carried out is
anti-competitive or not, which was carried out in the sector of authorized public accountants; Also, free competition audits
were carried out, which are those in which the Authority, without prior notice or judicial disposition, can verify the behavior of
economic agents, which occurred in the flour sector.

In other functions of the National Directorate of Free Competition, approximately 250 validations of increases in the price of
new homes were verified and about 300 financial analyzes were carried out in cases involving banks, furniture stores,
financial institutions and cooperatives in compliance with the protection regulations to the consumer and defense of
competition.

Regarding price information and verification, a total of 86 establishments were verified among supermarkets, mini supers and
grocery stores in order to offer the consumer price information on the different goods and services essential for consumption,
as well as surveys of prices to private schools, credit cards, fuels, minerals, among other markets.

In 2018 we expect the imposition of fines, in the brewing sector and the laundries, for example, and we hope to obtain
judgments from specialized courts in matters of free competition.

As our slogan: "Defending Your Freedom to Compete", we close a successful year 2017, sure that 2018 will come full of new
lessons and challenges for the employees of this Directorate and for the entire ACODECO family.

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