Controlling Mergers in Costa Rica

Analysis of the amendment to the Law for Promotion of Competition and Effective Defence of the Consumer which now establishes prior control of economic concentrations.

Wednesday, October 24, 2012

Competition Bulletin, the Antitrust Commission (COPROCOM):

"... a partial amendment has recently been approved to Law No. 7472, which introduces important changes in antitrust
regulations, consistent with international best practices
."

Prior control of economic concentrations

The reform includes the prior control of economic concentrations, therefore, operators will have to notify the COPROCOM to review mergers in which they may have to comply with any of the following conditions: that the sum total of the productive assets of all agents economic involved and its parent, exceeds thirty thousand minimum wages, or the sum of the total of the revenue generated in the country during the last fiscal year, of all the agents involved exceeds thirty thousand minimum wages.

The COPROCOM may authorize or deny concentrations. For authorization they may impose such conditions as it deems necessary to counteract the adverse effects on competition or encourage competitive effects. Additionally they can officially investigate and impose appropriate sanctions for anti-competitive effects and failure to communicate in those cases where they should have provided notification.



More on this topic

Incentives to Improve Competition

September 2019

In Costa Rica, a bill is in progress that contemplates eliminating fines for the first member of a cartel that recognizes and denounces to the authorities that has engaged in monopolistic practices.

As part of the bills for Costa Rica's entry into the OECD, deputies voted in second debate file No. 21.303, Law strengthening the competition authorities of Costa Rica, reported last August 29 the Legislative Assembly.

New Law on Competition in Costa Rica

September 2012

The Law on Promotion of Competition and Effective Consumer Protection recently approved typifies monopolistic practices and changes the rules on economic groups.

Two of the most important changes are expanding the scope of the law, which now includes public service employees in cases of concessions and the introduction of a new absolute monopolistic practice: the agreement between competitors to 'refuse to buy or sell goods or services'.

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.

Mergers and Monopolies in Costa Rica

September 2011

In order to avoid paying penalties after a merger it is possible to obtain endorsement of the operation from the Commission to Promote Competition (COPROCOM).

A statement from the COPROCOM reads:

In Costa Rica, unlike most countries with greater developments in Competition Law, control of concentrations is provided for after the event, ie, once the transaction has occurred.