Management 2022
5.6. Legal Management
The Company’s investments in other companies.
The Company has direct investments in the capital of Operaciones Tecnológicas y Comerciales S.A.S. – OPTECOM S.A.S., Comunicación Celular S.A – Comcel S.A. and Álamo Holdco S.L., as follows
The Company owns 3,330 common shares, equivalent to 100% of the capital stock of Optecom S.A.S., a Colombian company.
Participation in the capital stock of Comcel S.A. Colombia Telecomunicaciones holds and owns 3 shares of Comcel S.A., a Colombian company.
The Company acquired a 40% equity interest in Alamo Holdco S.L., a Spanish company, which in turn has a 100% equity interest in Onnet Fibra Colombia S.A.S., a Colombian company.
Transactions with shareholders and directors
The Company entered into transactions with Telefónica Hispanoamérica S.A. in the ordinary course of business. The related agreements were executed under market conditions.
The Company did not conduct any transactions with
directors.
Intellectual property and copyright regulations
The Company complied with intellectual property and copyright regulations in the systems installed. The Company is not aware of any violations or possible non-compliance with laws, regulations and standards on intellectual property and copyrights, whose effects should be considered for disclosure in the financial statements or for use to record a contingent loss.
Free circulation of invoices
The Company allowed the free circulation of invoices. In accordance with the provisions of Article 87 of Law 1676 of 2013, the Company states that it allows, without limitation, the free circulation of supplier invoices.
Corporate best practices implementation report - Country Code.
The Company duly prepared and submitted to the Financial Superintendence of Colombia the report on the implementation of best corporate practices for the year 2022, which is published on the Company’s website.
Non-compliance with laws and regulations
(GRI Content 2-27 y 307-1)
En el año 2022 se cerraron once procesos In the year 2022, we closed eleven administrative processes, all for events occurring in the years 2019, 2020, and 2021. Nine ended in payment of COP$1,626 million, and two were closed. All cases resulted in fines, none in non-monetary sanctions.
These investigations are related to the failure to report information in formats, inaccurate information in the formats, noncompliance with the process of locking mobile phones reported as stolen, noncompliance with specific quality indicators, not including in the TV grid the channels required by the regulation, and not locking 2 URLs.
In 2022, there were no cases of non-compliance with
environmental, social or economic laws and
regulations.
Non-compliance cases related to marketing communications
(GRI Content 2-27 y 417-3)
The Superintendence of Industry and Commerce (SIC) through Resolution 83165 of 2022 levied to the Company a fine of COP$868,000,000 for misleading advertising by considering that the Company requests more conditions to activate Netflix than those stated in the terms and conditions that are included in the advertising pieces, and is billing the Netflix service even though the customer did not request it. The Company filed legal appeals against the Resolution.
By means of Resolution 55597 of August 19, 2022, the SIC fined the Company with COP$1,507,000,000 for alleged misleading advertising related to unlimited advertising because the Company did not disclose in a clear, truthful, adequate and demonstrable way the conditions and restrictions of the service. The Company filed legal appeals against the Resolution.
On the other hand, through Resolution 13425 of 2022, the Superintendence of Industry and Commerce (“SIC”) fined the Company for COP$2,076,000,000 for violating the number portability regulation.
Justified complaints regarding violations of customer privacy and loss of customer data
(GRI Content 418-1)
In 2022, the Company did not identify any complaints from users or authorities for breaches of customer privacy or loss of their personal data.