The Consumer Protection and Competition Authority (Acodeco) has stepped up its oversight of the telecommunications sector in Panama. The general administrator, Ramón Abadi Balid, confirmed that the institution is conducting a formal investigation, both on its own initiative and in response to complaints, to determine whether the current operators are engaging in monopolistic practices that distort the market and directly affect citizens’ finances. For years, Panama benefited from the competitiveness of four operators. However, after consolidation processes and exits from the market, users were limited to just two major companies. For Abadi, this is the “genesis” of the current problem. The complaints point to monthly increases in mobile phone and internet bills, as well as the lack of discounts when service fluctuations or outages occur. If the irregularities are proven, the fines will range from $250,000 to $1 million. Acodeco is seeking to determine if there is a “notice” or coordination between companies to raise rates simultaneously. The official noted that, in previous cases, simply initiating legal proceedings has led companies to retract abusive measures to avoid greater penalties. The head of Acodeco acknowledged that the fight is not easy because current legislation has fallen behind technological advancements. The official noted that the possibility of free competition so that anyone could choose and change operators depending on the conditions and the service has disappeared. However, he assured that collaboration with the Public Services Authority (ASEP) is close to ensure that, despite legal gaps, the rights of Panamanian consumers are effectively protected. Once the evidence gathering is complete, Acodeco will go to the Commercial Courts. The loss of competitiveness has created a scenario where consumers have virtually no options to switch providers in the face of poor service or high prices. They admitted that the legislation is a little archaic, noting that the technological margins of the telephone companies make it difficult to track agreements between them. Our thanks to Ramón Abadi Balid, General Manager of Acodeco, who contributed to this report. If you wish to contribute stories to NewsroomPanama.com please send them to PanamaNewsroom@gmail.com.
