presentación de powerpoint · arbitration edwin pezo –socio senior [email protected]...
TRANSCRIPT
TRENDINGS 2019Changes and potential new scenarios for 2019
Arbitration
Edwin Pezo – Socio senior
• CASELOAD. The number of arbitration cases is expected to continue
increasing. While there is likely to be a slight decrease in the number of ad hoc
arbitrations, the arbitration activity will remain as intense as it has been so far.
• RELATIONSHIP WITH THE JUDICIARY. Despite the difficult
circumstances the Judiciary is facing, the Judiciary is expected to remain, in
general terms, "pro-arbitration." This translates into a very small percentage of
contested arbitral awards being annulled by the courts.
• ACCELERATED ARBITRATION. There is high expectation for the
entry into force of the Rules for Accelerated Arbitration of the Lima Chamber
of Commerce, which offer expeditious procedures for resolving claims where
the disputed sum is less than USD 50,000 or where the parties so agree,
irrespective of the disputed amount. The idea is to set up a fast track to resolve
certain claims in a shorter period of time and with savings in the costs of
arbitration.
• THIRD-PARTY FUNDING. Arbitration entail s cost. And sometimes
the cost of arbitration can be so high that users are discouraged from initiating
arbitration procedures. Faced with this, third-party funding is gaining ground in
international arbitration. In Peru, however, this alternative has not yet taken off;
arbitration users are expected to, at least, become more familiar with this
mechanism in 2019.
• DIVERSITY. Diversity and inclusion have also trickled into arbitration.
There are notable efforts from different fronts to ensure that women have
greater participation in the composition of arbitration panels. It is likely that
the first fruits of these efforts will be seen in 2019.
Foreign trade
Eduardo González – Socio senior
• REGULATIONS OF LEGISLATIVE DECREE NO. 1433. As
for the regulatory aspects of this sector, the greatest task will be to adopt the
regulations to Legislative Decree No. 1433 that substantially amended the
General Customs Act with drastic changes in terms of customs clearance
modalities, operability of the goods entry and exit regimes and, above all, the
performance of foreign trade operators and the authorized economic
operators.
• DYNAMISM. Foreign trade will show greater dynamism in 2019. Exports
of non-traditional products are expected to increase despite the drawback rate
dropping to 3% of the FOB export value this year.
• TRADE AGREEMENTS. The trade agreement with Australia will enter
into force. Negotiations of trade agreements with India and Turkey will
continue so as to expand Peru’s exportable offer. This trade opening policy
initiated by Peru in the last decade has proven to be the main driver of Peru’s
export boom of products with added value. This policy needs to be
consolidated with the Pacific Alliance, Mercosur, and the Andean Community.
Competition, consumption, and advertising
Pierino Stucchi – Socio senior
• FREE COMPETITION. In 2019, Congress will likely pass the bill on pre-clearance of certain business agreement concerning consolidation ofcorporations (amalgamations or business combinations), including mergers,acquisitions, and other transactions where control over business activities shiftsfrom one unit to another and is relevant in Peru. The National Institute for theDefense of Free Competition and the Protection of Intellectual Property(INDECOPI) would be in charge of such pre-clearance procedures, which aim atpreventing or setting conditions to business combinations that may significantlyrestrict competition in the marketplace. Yet, this would impinge free enterpriseand freedom of investments in Peru.
• ADVERTISING AND INFORMATION. The National Institute forthe Defense of Free Competition and the Protection of Intellectual Property(INDECOPI) will have a leading role in supervising commercial advertisementsof mass consumption products and services. It is also advisable to establishcompliance systems that include this subject matter.
• CONSUMPTION. In light of the decisions taken recently by theauthority on the denomination of dairy products, the sanitary registrationsissued by the National Sanitary Authority (DIGESA) would be subject tosupervision by the National Institute for the Defense of Free Competition andthe Protection of Intellectual Property (INDECOPI), which would, in turn, verifythat the denomination reflects the true nature of processed foods andbeverages, even when this would not have legal protection.
• As for the regulatory aspects, Congress will have to take a final decision on twobills observed by the Executive Branch and which impact consumer relations:the amendment to the parking law and the replacement of advertising warnings(octagons) with a system of nutritional traffic lights in the area of healthy eating.
• ELIMINATION OF BUREAUCRATIC OBSTABLES. During2019, Indecopi will continue being actively involved in the elimination of illegalor unreasonable bureaucratic obstacles affecting or imposing surcharges onbusiness activities in Peru. Any company which identifies a bureaucraticobstacle which affects its national market or foreign trade activities can lodge aclaim and benefit from its elimination.
Corporate law
• COMPLIANCE. Corporate law areas will continue to work hand in handwith compliance and criminal law lawyers in implementing anti-corruption andmoney laundering prevention policies, with both in-house and law firm counsels.
• GOOD CORPORATE GOVERNANCE. The guidelines on goodcorporate governance promoted by the Superintendence of Securities Market(SMV), currently optional for companies, will be taken more rigorously.
Ricardo de la Piedra - Socio
• TAX PLANNING. In light of the regulatory changes on the liability ofadministrators, managers, and legal representatives, there will be a grey zoneand certain doubts regarding the current so-called "tax planning." Since suchrule allows the authority to presume that the purpose is to avoid taxregulations to obtain more favorable tax treatment, directors, managers andrepresentatives will be more reluctant to request tax reports and the devisingstructures, as well as to implement them.
• DIRECTORS AND MANAGERS. Fewer and fewer casual managersand directors will be appointed, as well as those who are simply appointed tomeet a formal requirement of having a person in office within the company.Candidates will become more aware of the fiduciary duty to the companyinvolved by such appointment, and failure to honor such duty may result in civil,administrative, and criminal liabilities, which are further reinforced by the State.
Labor law
• MORE LABOR INSPECTIONS. With the increase in the number ofinspectors in the National Superintendency of Labor Inspection in 2018, agreater number of inspections is expected in 2019. From July 1, they will focuson compliance with the regulations on equal pay (Act 30709) without neglectingother recurring issues such as occupational health and safety, overtime pay, andother labor-related benefits.
• MORE EMPLOYMENT LAWSUITS. The rigidity imposed by theemployment jurisprudence (caselaw) not only on issues related to arbitrarydismissal, but also on work accidents (where the employer is always held liable),encourages the filing of lawsuits, increasing employment disputes. In 2019, wewill surely have more employment lawsuits.
César Puntriano – Socio senior
• LABOR REFORM. With a high level of informality, urgent reforms are
needed to encourage those who are on the margins of formality to join it. The
Executive Branch has partially understood the message, so it is preparing
changes in the legislation on labor stability. The outlook is not simple, since the
Constitutional Tribunal (CT) could declare the future standard as
unconstitutional and return to the current situation, to which the CT itself
dragged us in 2001.
Criminal law y compliance
• PRIVATE CORRUPTION. As a result of Legislative Decree 1385 andthe new criminal offenses of private corruption, the firm will be asked morefrequently on the scope and limits of such crimes in relation to usualcommercial practices, as such practices are being interpreted as if they werepart of these new crimes.
• MONEY LAUNDERING. Investigations for corruption of officials andmoney laundering will continue, with the same trend that has been observed todate.
• CRIMINAL CHARGES AGAINST DIRECTORS. Thedevelopment of a jurisprudential line (caselaw) initiated with Cassation 455-2017 Pasco will continue. Such precedent establishes the scope of functionalgrounds of an indictment against a legal representative or general manager of acompany and thus increases the concern for criminal contingencies that mayarise when an individual joins the top management of a company.
Ian Galarza - Socio
• CRIME PREVENTION. Consulting and advisory services on theimplementation of crime prevention models (CPM) under Act 30424 willcontinue, even though the regulations of such act have not yet been passed.These requests for services will increase exponentially once the regulations arepassed and the first companies are charged with such offenses.
• CRIMES EXPANSION. The list of criminal offenses stipulated underAct 30424 will be expanded, becoming more important and resulting inbusinesses being more concerned about meeting legal requirements andprotecting the company from criminal contingencies.
• CRIMINAL MANAGEMENT INSTRUMENTS. The firm isincreasingly being asked to review various criminal management instruments (i.e.codes of ethics, policies, etc.), which a company already has in place in order toadapt them to the new criminal legislation.
• CRIMINAL REFORMS. The corporate criminal liability first establishedin Peru with Act 30424, must be accompanied by a reform of criminalprocedures, as has happened in other countries. This will increase the Firm’sadvisory and consulting services in this area.
Tax lawLuis García Romero – Socio
• AUDITING INDIVIDUALS. In various ways, the Tax Administrationhas evidenced its intention to pursue tax evasion of individuals, so it should beno surprise that in the coming months, inductive letters and inspectionrequirements will be sent our massively. The purpose of such letters is to verifycompliance with tax obligations of previous reporting periods.
• REPEAL OF ANTI-AVOIDANCE RULE REGARDINGMANAGER’S AND DIRECTOR’S LIABILITY. The workinggroup in charge of constitutional control over the regulatory acts of theExecutive Branch recommended repealing the rule regulating the director’s andmanager’s liability in application of the anti-avoidance clause; therefore, theExecutive is expected to issue the corresponding legal device within the nextfew days in order to render such provision null and void.
• PLASTIC BAGS TAX. Within the framework established by the Statefor regulating the use of plastics and disposable containers or packages, a newtax has been established for the use of plastic bags to carry goods sold bycommercial or service establishments. This tax will increase progressively eachyear and will be one of the novelties for 2019.
• CONSOLIDATION OF PAYMENT VOUCHERS, LEDGERS,AND ELECTRONIC RECORDS. By 2019, the great majority ofcompanies are expected to record their tax information on-line with theNational Superintendency of Tax Administration – SUNAT. This is due to thefact that more and more companies are required to keep their records,accounting books, and payment vouchers electronically. These measures willfacilitate SUNAT’s oversight tasks.
ElectricityRolando Salvatierra – Socio senior
• RENEWABLE ENERGY RESOURCES (RER). In 2019, thismarket must be revamped. However, for this to happen, the Ministry of Energyand Mines (MEM) should pass the proposed standards on wind and solar powergenerators. MEM should also approve the proposed amendment to the RERregulations so as to allows the extension of the period for entry intocommercial operation (POC) of the plants granted in third and fourth call oftenders. Finally, many investors expect a new tender to be called.
• ENERGY EFFICIENCY. This year, the Ministry of Energy and Mines(MEM) is expected to pass standards to promote the massification of electricvehicles. The Energy Efficiency Labelling Regulation is expected to be extended,especially for electrical appliances that do not have certifying agencies.
• FREE CUSTOMER MARKET FOR ELECTRICITY. Freecustomer market competition among generators and distributors will continue;this will result in prices being upheld. Hopefully, the Ministry of Energy andMines (MEM) will not pass the proposed regulation to limit the level of powerto be considered as a free customer market.
Mergers and acquisitions
• INCREASE VALUE AND NUMBER OF TRANSACTIONS.An increase in both value and number of transactions is likely. This will old trueto the extent that relative economic recession remains, favoring more supply onthe selling side, opportunity costs, and buyers with the capacity or interest towait for strong economic growth.
• MERGERS AND ACQUISITIONS PRE-CLEARANCE RULE.Unfortunately, the expectation of an increase in the number of transactions maybe negatively impacted and result in the postponement thereof, if the mergerand acquisition pre-clearance rule being discussed in the Peruvian Congress isnot delayed or discarded. This rule would aim at the government pre-clearingcertain transactions that exceed a certain threshold of combined value betweenbuyer and seller. This procedure would impact times and otherwise.
Mauricio Olaya – Socio principal
• DYNAMISM. This will be another dynamic year for a number of economicsectors: certainly retail, education, agribusiness, energy, finance, and industry. Ingeneral, such businesses will engage in important transactions. The market willalso continue to vary in terms of value of transactions.
• ACTIVE PLAYERS. Undoubtedly, investment funds will continue to bevery active in exploring opportunities; startups will look for investors orstrategic partners; and real estate investment funds will identify developmentareas in new trade and urban areas.
Infrastructure
• ONGOING PROJECT INVESTMENT CYCLE. In 2019,construction of the expansion of Jorge Chávez airport will begin and investmentin ongoing projects such as Lima Metro Line 2, General San Martín PortTerminal (Paracas), and Salaverry Port Terminal (Trujillo) will be accelerated.
• WORKS IN EXCHANGE FOR TAXES. With the amendments tothe regulations (Legislative Decree 1361 and Supreme Decrees 294 and 295-2018-EF) recently passed, the State will continue to encourage this mechanismto develop projects in different areas, with greater emphasis on health,education, agriculture, public order and security, sanitation, environment,remediation of environmental liabilities and citizen services.
• INFRASTRUCTURE PLANNING. The National Infrastructure Planshould be passed in the second semester of 2019. This plan sets out theobjectives, actions, and priorities of the ministries, regional governments, andlocal governments for the next three (3) years with a view to closing theinfrastructure gaps.
Juan Carlos Salinas – Socio senior
• NEW PROJECTS. A portfolio of 31 projects worth USD 3,548 million to
be developed with private investment will be made available in 2019. In
transportation, the Huancayo-Huancavelica railway, Section 4 of the Longitudinal
Highway in the Highlands, and the port terminals of Chimbote and Marcona
stand out. Also, the Lima-Ica railway will be tendered as well as the concession
of the third group of airports. Although 2019 is the first year in office of new
regional and municipal authorities, the civil works under the purview of the
Authority for Reconstruction and asphalting of highways will boost public works
projects.
Magali Lazo – Socia
Real estate and construction
• SMALL FORMAT BOOM. 1- and 2- bedroom apartments and smallsized living quarters are currently the top choice in the real estate market, evenin exclusive and expensive areas like Barranco. Behind this trend is a potentialgroup of buyers who are young professionals seeking greater degrees ofindependence at an earlier age. This trend will continue and could increase.
• PRICE FLUCTUATIONS IN SALES AND RENTALS TOCONTINUE. Housing sales and rental prices fluctuated constantly in 2018.This trend is expected to continue during 2019, where the market will have upsand downs depending on a number of factors such as the non-reduction ofinterest rates, new development projects (since a significant portion of thefinished units in stock from previous crisis years would have been sold), and theentry of new market player investing in urban development.
Yuri Vega – Socio senior
• SHOPPING CENTERS. In 2019, some new shopping centers will open.These ventures are presently being completed or obtaining permits. These newmalls will make the retail business more dynamic – marking a shift from theslowdown experienced in 2018 and returning to the performance experiencedas a few years ago.
• NEW FORMATS WITH LARGER SOCIAL SPACES. Therewill also be new buildings and condominiums with huge spaces for recreationalactivities which will be used as sales pitches and savings mechanism. Newformats with an impact on larger green areas could be added.
Innovation and entrepreneurship
• ARRIVAL OF FOREIGN VENTURES (SOFT-LANDING).The Foreign Entrepreneurs Competition sponsored by Startup Peru will grantfunds to foreign businesses that can create quality employment and transferknowledge acquired in the country of origin, while building links withinternational entities that may promote entrepreneurial culture in Peru.
• ALLIANCES BETWEEN CORPORATIONS ANDSTARTUPS. More alliances between medium and large sized companiesand startups are expected in 2019. Although startups are still perceived ascompetitors of large organizations, such initial rejection is giving way to thecreation of alliances due to the knowledge and technological development theypossess and the innovative and disruptive vision that characterizes suchentrepreneurial ventures.
• FINTECH. Startups specialized in financial technology (fintech) will furtherflourish and position themselves due to the high percentage of the populationoutside the banking system (only 30% of people in Peru use the banking system,according to the Association of Banks of Peru -ASBANC). In this sector, theregulatory bodies are expected to make a statement to provide legal certaintyand flexibility to fintech in order to accelerate its development in 2019 throughregulatory sandboxes.
Itala Bertolotti – Socia
• PUBLIC INVESTMENT IN STARTUPS. In 2019, Innóvate Peruwill allocate S/. 62 million through contests offering non-reimbursable resources(seed capital) to innovative, dynamic, and high-impact ventures. It should benoted that the sum allocated is less than the amount allocated in 2018 (S/. 80million) but there is a commitment to increase it during 2019.
• GREATER PRIVATE INVESTMENT IN STARTUPS. For eachSol invested by the State, the private sector has invested more than two Soles,which shows the private sector's commitment to entrepreneurship andinnovation.
Life sciences & health care
• APPROVAL OF THE REGULATIONS ON THEMEDICINAL USE OF CANNABIS. 2019 will consolidate thecompanies linked to cannabis and which have been closely following thedevelopment of the proposed standards thereon, and investment potentials inour country. Regulations such as those of Mexico, Colombia, and Chile, whichhave rules that allow the entry of cannabis-derived products for medicinal,cosmetic, and food uses, will help the industry in getting rid of the stigmatizationto such substance, while highlighting the benefits of its use and consumption.
• BIOLOGICS AND BIOSIMILARS: THE REGULATORYENVIRONMENT. State-of-the-art pharmaceuticals are biologicalproducts that are manufactured using living cells and biotechnology. Theseproducts face a series of regulatory challenges in Peru; rules are interpreted infavor of patients. Sanitary registrations are granted within the established legaldeadlines and to products that are genuinely biosimilar, meeting the minimumcriteria of the World Health Organization (WHO).
Maritza Reátegui – Socia senior
• HEALTHY EATING ACT AND ITS IMPACT ONLABELLING AND PRESENTATION OF SANITATIONREGISTRATIONS. The food and beverage industry will have to be readyfor the new labeling regulations and more restrictive interpretations ofstandards by regulatory authorities regarding the impact of cases involving dairyproducts and which are broadly covered by the media.
• REGULATION ON THE INTERCHANGEABILITY OFMEDICINAL PRODUCTS. An incipient beginning, but important forpatients, is requiring studies proving the interchangeability of medicines and thatpharmaceutical interchangeability does not guarantee medicines from actuallybeing generic.
The environment
• MINING. The terms of reference for the preparation of an IntegratedEnvironmental Study would be approved, in accordance with Supreme Decree040-2014-EM, Regulations on Environmental Protection and Management forMining Exploitation, Extraction, General Works, Transportation, and StorageActivities.
• SOLID WASTE. The guide for the profiling of municipal solid waste wouldbe approved, as well as the classification of administrative infringements and thetable of sanctions applicable to failing to comply with the obligations on solidwaste management incurred by the owners of said facilities.
• PLASTIC. In June, the regulations of Law 30884, which regulates single-useplastic and disposable containers, would be approved. The regulation mustestablish mechanisms to evaluate the progressive reduction and compliancewith the deadlines established in the law.
Renato De Vettori – Socio
• ENERGY (HYDROCARBONS AND ELECTRICITY). In thehydrocarbons sub-sector, the regulations of Law 29134 on environmentalliabilities will most likely be passed, as well as the guidelines for the elaborationof Detailed Environmental Plans for the adaptation of activities that do not haveenvironmental certification. Likewise, a new regulation on citizen participationto carry out activities in this sub-sector should be approved.
• In the electricity subsector, the regulations on environmental protection inelectrical activities should be passed in 2019. Similarly, provisions for updatingenvironmental management instruments in the hydrocarbons and electricitysubsectors will be adopted in the coming months. This is also true for theapplication of soil environmental quality standards and management criteria ofcontaminated sites.
Capital Market
• OPERATIONAL RISK. The Operational Risk Management Regulationwould be amended by the Superintendence of the Securities Market (SMV) inorder to improve guidelines on impact assessment of significant changes,outsourced services, cybersecurity and guidelines for cloud data processing.
• FIBRES. The FIBRAS market should continue growing given the liquidity andtax incentives offered.
• COOPERATIVES. This year, cooperatives will be included under thesupervision of the Superintendence on Banking and Insurance (SBS) and thuswill have to make greater investments to adjust to the legal requirements.
Mercedes Fernández – Socia senior
• RELATED COMPANIES. On January 1, 2019, the regulations on article51 paragraph c) of the Securities Market Act on transactions between relatedparties and which applies to companies with common shares registered in thePublic Registry of the Securities Market will enter into force.
• INDEPENDENT DIRECTORS. The regulation approving theGuidelines on Independent Directors should be issued by the Superintendenceof the Securities Market (SMV). Such guidelines have already been madeavailable to public opinion.
Mining and sustainable development
• PROMOTION OF MINING AND REDUCTION OF REDTAPING. The tax stability contracts regime in mining is expected to change.The purpose of this Executive proposal is to harmonize the current regulationsby specifying which stabilized contractual benefits would apply to ten-, twelve-and fifteen-year contracts.
• Likewise, the publication of the new regulation of mining procedures isexpected. These standards are aimed at simplifying the administrativeprocedures to be undertaken before the Geological, Mining, and MetallurgyInstitute (INGEMMET) and Mining General Directorate (DGM), mainly.
• MINING FORMALIZATION, ILLEGAL MINING ANDMINING COMPLIANCE. In the penultimate year of the miningformalization process, the Regional Directorates of Energy and Mines (DREM)will play a leading role in the procedures for approving the requirements forgranting the authorization to initiate activities of small mining producers (PPM)and artisanal mining producers (PMA).
• On the other hand, the specialized environmental prosecutor's offices (FEMA)will continue to lead interdiction operations against illegal mining-a criminalactivity that in 2018 alone represented USD 1,031 million under suspicion ofmoney laundering, far surpassing illicit drug trafficking. In this context, more andmore companies producing and marketing mining products (especially gold) areexpected to implement compliance and traceability systems.
Daniel Palomino – Socio
• MINING SCENARIO. The reactivation of the Quellaveco, Mina Justa,and Toromocho Extension megaprojects in 2018 promises to reinvigorate thesector and foster a better investment climate by 2019.
• THIRTY-YEAR MINING CONCESSIONS. The new system ofsanctions for mining concessionaires that do not comply with the minimumannual production entered into force on January 1. Under this system,concessions could remain in force for up to thirty years.
Tenders processes
• BIDDING PROCEDURES. The tender procedures provided for in theLaw on Government Procurement and its Regulations are the following: publictender, public tender, simplified award, electronic reverse auction, selection ofindividual consultants, price comparison, and direct contracting.
• LEASING. Government entities may directly acquire existing real estate andlease real estate, and in the latter case may even include refurbishing costsincurred by the lessor.
• GUARANTEE FOR APPEAL. The guarantee for filing an appeal isequivalent to 3% of the reference value or the estimated value of the tender oritem being challenged. Currently, the maximum amount of the guarantee is 200Tax Units (UIT), but from January 30, 2018 this maximum amount will beequivalent to 300 Tax Units (UIT).
Carlos Morán – Socio
• PARTICIPATION IN CONSORTIUM. Two or more suppliers may
participate in bidding procedures as a consortium in order to complement their
qualifications and so comply with the requirements of the bid terms and
conditions. If the consortium is awarded the tender, its members must perform
the obligations assumed in accordance with their percentage of participation.
The bid terms and conditions may establish a maximum number of members
per consortium, as well as a minimum percentage of participation.
Infringements by a consortium are jointly and severally attributed to all its
members, unless otherwise determined by the nature of the infringement, the
formal consortium commitment, the consortium agreement, or any other
documentary evidence allowing for individual liability.
Retail
• GREATER USE OF THE MOBILE WALLET. The cell phone hasbecome an indispensable tool and we are not only talking about millennials orgeneration Z. With the virtual accounts in the cell phones, one can make apurchase from a mobile without the need for cash, being very likely that thistype of operations will grow not only in Lima but in provinces.
• PROMOTE THE CIRCULAR ECONOMY / PROTECT THEENVIRONMENT. Reducing and reusing a resource every day is becomingmore ingrained in the values and principles of consumers. They wonder how theproduct is made, whether it is organic or not, or whether the workers whomade it are being exploited. Supreme Decree 013-2018-MINAM has recentlybeen published, promoting the responsible use of plastics, and to date manysupermarkets have included cash registers that only sell products to consumerscarrying their cloth bags.
• PET FRIENDLY. Some retailers are admitting consumers to enter withtheir pets by giving them proper treatment.
Annalucia Fasson – Socia
• E-COMMERCE GROWTH. Online purchases will increase, throughdifferent applications, websites or social networks. Retailers have focused ontwo key points: i) offering products purchased online at lower prices and ii) theimmediacy of product delivery.
• IMPLEMENT EXPERIENCE CENTER. Shopping centers areturning into centers of experience, even though many of them already havewebsites, the challenge of appealing to more public flow has made them rentareas where other activities as diverse as coworking, dance schools, gyms, bio-fairs, etc. may be implemented.
Telecommunications, media, technology, and privacy
Pierino Stucchi – Socio senior
• DIGITAL BUSINESS. The State seems to be moving towards theregulation of digital businesses of different types, developed through applicationsfor mobile phones, websites, and other digital platforms.
• PRIVACY AND PROTECTION OF PERSONAL DATA. Dueto the recent amendment to the Consumer Code, mass telemarketingcompanies are required to make sure that they ask for prior authorization fromconsumers or users to contact them so as not to incur in potentialinfringements to the consumer and data protection rules. With the entry intoforce of the European Union General Data Protection Regulation (GDPR), it ishighly likely that the Peruvian personal data protection authority, in line withinternational trends, will increase its control over the companies that collectand store these data.
• TELECOMMUNICATIONS. With the entry of new players in mobiletelephony services (virtual mobile operators), greater dynamism is expected innumber portability. This could generate more competition as new rates wouldbe offered in the market.
• MEDIA. The implementation of digital television (ISDB-T standard) willbecome more intense, with direct broadcast in Lima and Callao (where analogand digital broadcasting will coexist until the end of 2019); and withsimultaneous broadcasting in some other cities of Peru. The switch-off analoguebroadcasting is being progressively regulated and is expected to start in Limaand Callao by 2020.
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