Costa Rica: Multi Million Dollar Fine and Suspension for State Telecom Company

The Disputes Tribunal has ordered a halt, temporarily, of the $4 million fine imposed on the Costa Rican Electricity Institute for engaging in monopolistic practices.

Thursday, June 11, 2015

The fine imposed by the Superintendency of Telecommunications (Sutel) has been temporarily suspended, confirmed the Regulation director of the Costa Rican Electricity Institute (ICE) to Crhoy.com .

The move comes amid strong pressure from various sectors, including the union officials of the state telecom company, against the measure taken by the Sutel.

Crhoy.com reports that "... The Sutel imposed a penalty on the ICE, after Telefonica denounced that the state company's promotions offered interconnection at below cost in November and December 2011. "



More on this topic

Costa Rica: Telecoms Market Data Must be Updated

November 2015

A ruling by the Administrative Court found in favor of the state run telecoms company and obliges the regulator to update the relevant market data and level the playing field for all operators.

In the lawsuit, the Instituto Costarricense de Electricidad (ICE) argued that the failure to update data on relevant markets and operators prevented the Superintendency of Telecommunications from providing equal treatment to all telecommunications companies operating in the country. Because of this, Crhoy.com reports, "... only the ICE can be fined or receive penalties for noncompliance."

Costa Rica: YES to Regional Roaming Without Large Cost

September 2015

The telecommunications regulator has not found that the services provided by private operators for regional roaming at no additional cost are anti-competitive.

The complaint filed by the Instituto Costarricense de Electricidad purported to show that its competitors in the mobile phone market Claro and Telefonica were implementing anti-competitive practices when setting prices for their services in the country.

Costa Rica: Telecoms Company Fined for Anticompetitive Practices

May 2015

The state-run telecom company ICE will pay $4 million for abusing its market power to bar entry to or cause the exit of other operators.

From a statement issued by the Superintendent of Telecommunications of Costa Rica (Sutel):

- Offenders must pay a fine of 0.58% of their gross income on mobile phones obtained during the preceding fiscal period because of the anti-competitive practice.

Price Fixing in Mobile Phone Companies Prevented

September 2011

The Costa Rican regulator has prevented telephone companies Telefónica and ICE from agreeing on tariffs for end users within a contract for interconnecting their networks.

The company Claro filed a complaint to the Superindendency of Telecommunications (Sutel), which stated that the access and interconnection agreement signed between the Instituto Costarricense de Electricidad (ICE) and Telefónica, contained clauses where both companies agreed not to charge prices below the cost of services provided, considering the interconnection charges as a cost common to both.