LIME-FLOW deal could distort competition in CSME, says CARICOM Commission
CARICOM’s Competition Commission says it has reason to believe that the recent acquisition of FLOW by Cable & Wireless Communications Plc (CWC) has the potential to distort competition within the trading bloc.
The Jamaican Government has already given its approval of the transfer of control of FLOW and Columbus Networks Jamaica Limited from Columbus International to CWC, which is the parent company of LIME.
However, CARICOM’s Competition Commission says, based on Article 176.1 of the Revised Treaty of Chaguaramas, it is of the view that the deal could prejudice trade.
It says the deal could also prevent, restrict or distort competition within the CARICOM Single Market and Economy with the possibility of cross-border effects.
However, Technology minister, Phillip Paulwell, says he is confident that Jamaica is on firm legal footing in its decision to approve the acquisition.
CARICOM’s Competition Commission has requested national competition authorities across the region to undertake a preliminary examination of the deal and provide the Commission with a report within 30 days.
The Commission has also written to the national telecommunications regulators and government ministries in each Member State to request a preliminary examination of the potential impact of the agreement on national telecommunications markets.
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