2011 merger between Digicel and Claro did not break Jamaican competition law

24 Dec 2014

Jamaica’s Court of Appeal has ruled that the 2011 merger between two of the country’s three mobile operators – Digicel and Claro – was in keeping with the Telecommunications Act and did not contravene the Fair Competition Act (FCA). Jamaica’s Fair Trading Commission (FTC) challenged the merger towards the end of 2011, saying it created a less competitive cellular market, with the enlarged Digicel/Claro having just one rival, Cable & Wireless Communications (CWC) subsidiary LIME. Digicel responded by filing a counter-claim, saying the FTC had no jurisdiction, though this argument was eventually overturned by the Supreme Court. According to a report from the Jamaica Observer, the Court of Appeal has now decided that the FCA does not apply to the tie-up as there was no collusion between the operators.

Jamaica, America Movil Jamaica (Claro), Digicel (Jamaica)