Main Menu
Web Links
About Us
Site Map
Developer Tutorials


FTC opposes Digicel/Claro merger PDF Print E-mail
Written by   
Wednesday, 28 December 2011

The Fair Trading Commission (FTC) has become the second entity to take legal action in the Supreme Court in an effort to prevent the approved merger of telecoms providers Digicel and Claro.

The regulatory body, in a lawsuit filed with the High Court this month, is seeking several declarations that, if granted, would result in the scuttling of the merger and fines of $5 million against Digicel Jamaica Limited and Oceanic Digital Jamaica Limited for each detected breach of the Fair Competition Act.

In the interim, the FTC will be asking the court for an injunction to block the merger, which it claimed would result in a lessening of competition in the telecoms market. In the suit filed by attorney Dr Delroy Beckford, the FTC is contending that customers can only adversely affected by any merger between the two entities.

According to the suit, over the period April 2007 (when Claro entered the market) to March 2011 (when the intended merger was announced) "it is estimated that customers' benefits from competition" among the Digicel, Claro and LIME "exceeded $16 billion". The FTC is contending that this monetary benefit to customers would be lessened should the merger go through.

This aspect of the deal that will see Claro taking over Digicel's Honduras operation is also being challenged by the FTC.

A date is yet to be set for a hearing.

The FTC suit follows a failed attempt in the Supreme Court by telecoms provider LIME to have then Prime Minister Bruce Golding's approval of the merger in August overturned. In a ruling against LIME, Justice Bryan Sykes, ruled that Golding's approval was done in accordance with the respective regulation.

LIME had said that it would appeal Justice Sykes' ruling, but it is not clear how the filing of the FTC lawsuit would affect that decision.

LIME had contended that the prime minister's decision to approve the merger "is unlawful/and or was affected by an improper exercise of his power".

The intended merger between the two telecoms companies was announced in a news release on March 11 and was approved by the prime minister in his capacity as the minister with responsibility for telecommunications.

LIME has been against the merger, arguing that it would damage competition and turn Digicel into a monopoly.

Read more:

Latest Forum Threads
3 samsung galaxy s5 for sale octa-core edition fully unlock
by hv_thugg Oct-23 10:06 PM
Main Domain Name over Sub-domains: Which is More Search Resu
by thisischarles14 Oct-23 09:04 PM
Rendering Video Files and Splitting THem with Freemake or VL
by thisischarles14 Oct-23 09:01 PM
Iphone 4 8gb Used
by Greatis Oct-23 08:21 PM
Where In Jamaica To Repair S4 broken Screen?
by jomo Oct-23 07:29 PM
Network Mapping Software
by DarkAngel Oct-23 04:54 PM
Iphone 6
by GPRS Internet Oct-23 04:33 PM
Tech stuff you recently bought
by King_Jay16 Oct-23 03:52 PM
Lime SIP trunks
by Sal Oct-22 06:13 PM
FS Single 2GB DDR3 Laptop Memory
by Rizzle Oct-22 01:37 PM

Friday, 24 October 2014
Bookmark Us
Bookmark Website
Make homepage
Last 5 Links Added
 HitzConnect Radio
Hits: 8257
 Modern Power & Cooli...
Hits: 5371
 Xclusive Tech
Hits: 6960
 Real World Technolog...
Hits: 5376
 Orbus Technologies
Hits: 5548
Featured Links
Who's Online

Site best viewed at 1024x768
Copyright MMV All Rights Reserved.