$2 mlllion Fine for Monopolistic Concentration

Following the purchase of the Costa Rican company Atlas, the Mexican group Mabe has near total monopoly of the household appliances sector.

Wednesday, August 17, 2011

The Commission to Promote Competition in Costa Rican’s Ministry of Economy, found that after the acquisition of Atlas, there was a 'prohibited concentration", according to the law to promote competition and consumer protection.

"According to analysis by COPROCOM, Mabe practically dominates the market single handily in the sale of cookers and refrigerators ‘of a certain size’ in Costa Rica, which is having a ‘negative impact’ on this market, especially for consumers", reported Prensalibre.com

In a consultation with the Costa Rican newspaper La Nacion, the general manager of Mabe Costa Rica, Diego Artiñano said that he believes the sanction imposed is excessive and that it would be appealed.



More on this topic

Mergers and Acquisitions in Costa Rica

April 2013

As of April 5 mergers and acquisitions will have to be approved at the Antitrust Commission, part of the Ministry of Economy, Industry and Trade, before they can take place.

From that date, the Antitrust Commission, at the Ministry of Economy, Industry and Commerce (MEIC), will have the power to approve or deny deals, if it is concluded that they would result in undue concentration of business.

Appeal Against Fine for Monopolistic Concentration

January 2012

The company Mabeca has filed an appeal citing unconstitutionality with the Sala IV (Constitutional Court) of Costa Rica, claiming disproportionality in the fine of $2.3 million that has been applied to them.

In August 2011, the Commission to Promote Competition under the Costa Rican Ministry of Economy, found that after the acquisition of Atlas Eléctrica by Mexican company Mabe in 2008, there was a "prohibited concentration" according to the law for promoting competition and consumer protection, and imposed a fine of $2.3 million.

Costa Rica: Reforms to Anti-Monopoly Law

August 2011

The recent fine imposed on Mabe has revived controversy over the nature of the regulations.

Two bills relating to monopolies, under analysis in the Legislative Assembly, might be reactivated earlier than expected, after the Commission for the Promotion of Competition (COPROCOM) decided to fine the company Mabe for unlawful concentration in the market.

Mabe cuts jobs in Costa Rica

November 2008

The Mexican appliance company, Mabe, that bought out the Costa Rican company, Atlas appliances, last February, cut back on employment in the country.

Diego Ariñano, General Manager of the company for Central America, confirmed that the decision was caused by decreased demand for appliances as a result of the world economic situation