Movistar and Tigo Merger in Colombia Creates Possible Duopoly and Competition Risks

Competition law attorney Danilo Romero Raad was cited in a Bloomberg Línea article on the possible merger between Movistar and Tigo in Colombia. The Communications Regulation Commission (CRC) recently published a technical concept presenting various concerns about the effects of the consolidation, among them increased prices and adverse consumer impacts. Mr. Romero warned that the transaction would create a company that would control the majority of the telecommunications market and said it is key that the entity incorporate pro-competition policies to strengthen market dynamics and guarantee users do not suffer negative effects on the quality of coverage and service.

"If the Superintendency approves the integration, it will be undeniable that there will be a situation in which the large companies will have more than 85 percent of the market," he pointed out.

READ: Movistar and Tigo Merger in Colombia Creates Possible Duopoly and Competition Risks