The Authority for Consumer Protection and Competition Defense (Acodeco) in Panama has warned that telecommunications companies could face fines ranging from $250,000 to $1 million for recurrent price increases on various service plans. The head of the entity, Ramón Abadi Balid, explained that sanctions would be applied once ongoing investigations into the phone companies are concluded and it is determined that the tariff hikes lack technical or commercial justification. "When the investigations are over and it is established that there is no basis for these increases, we will initiate sanctioning processes against the companies," the official stated. Abadi maintained that the root of the problem lies in the loss of competitiveness in the telecommunications market following the reduction in the number of operators in the country. "The genesis of the problem is that we lost the competitiveness of having four telephone operators. This should never have happened," he affirmed. According to the Acodeco administrator, this situation has limited the ability of users to freely switch providers in search of better prices or services. "The possibility of free competition for anyone to choose and change operators depending on the conditions and service has practically disappeared," he noted. The official announced that once the investigations are complete, the institution will go to the commercial courts to request measures to halt potential abusive practices. "We will ask the judge to intervene directly in suspending this type of activity," he explained. Abadi reiterated that if irregularities are proven, the consequences for the companies involved will be severe. "Fines range from $250,000 to $1 million," he specified. The head of Acodeco recalled that in previous cases, the mere opening of judicial proceedings has led some companies to reverse price increases to avoid larger sanctions. "What we seek is to prevent abuse of the consumer. Companies are free to set their prices because it is a free market, but they must have a basis for doing so," he stated.
