Appeal Against Fine for Monopolistic Concentration

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.

Wednesday, January 18, 2012

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.

The Commission to Promote Competition of Costa Rica (COPROCOM) based the penalty on the fact that Mabe almost dominates single-handedly the market for stoves and refrigerators "of a certain size" in Costa Rica, which has a "negative impact" for this market and especially for consumers.

The Sala IV has taken under review Mabeca's action and called on COPROCOM to present its evidence within 15 working days.



More on this topic

Coca Cola Fined for Anti-Competitive Practices

July 2012

The penalty imposed by the Commission to Promote Competition in Costa Rica has been upheld after the First Chamber of the Supreme Court declared the last appeal filed by the company irrelevant.

The penalty for monopolistic practices, dating back to May 2004 was because the bottler apparently made exclusive contracts with vendors and fixed prices.

Accusations of Anti-Competitive Practices in Insurance Industry

December 2011

The National Insurance Institute of Costa Rica is under investigation for price reductions that could constitute a violation of the Law on Promotion of Competition.

The open procedure by the Commission to Promote Competition (COPROCOM) is the only one that has been presented since the opening of the insurance market in 2008.

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.

$2 mlllion Fine for Monopolistic Concentration

August 2011

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

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.

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