El Salvador recently adopted a Competition Law (November 2004) and will establish the Competition Superintendence during the implementation of COMPAL. During the 1990s, El Salvador liberalized many sectors and privatized some state enterprises. Around the same time, discussions began on the adoption of a competition law. In recent years, the debate on the need for a competition law came to the fore. A Competition Promotion Commission was established within the Legislative Assembly to consider draft proposals for a competition law, and this concluded with the adoption of the Law.

The national report on needs and priorities in the area of competition policy in El Salvador (prepared under phase I) identified potential abuses of dominant position in cement (where prices are among the highest in the region). In the market for beer, a single firm supplies the entire national market, managing twenty different brands and the nationwide distribution system for beer. Concerns have also been raised about potential price fixing in the markets for petroleum and sugar. Finally, small and medium-size enterprises have complained about being the target of other anti-competitive practices, including predatory pricing. Concerns have also been raised about the pricing behaviour of recently privatized firms. In the power sector, a recent study by ECLAC found high levels of concentration in the generation and distribution stages.

With respect to consumer protection, as a result of the high priority given to it by the Government, a Consumer Protection Presidential Commission was established with the purpose of protecting consumers' rights, a function that will be made easier once proposed amendments to the consumer protection law are passed that will allow the Commission, among others, to impose sanctions.