How Antitrust Law in Costa Rica Works

Four months ago mergers and acquisitions in Costa Rica were conducted without any governmental control.

Tuesday, July 16, 2013

Now, operations of this type over $15 million must be authorized by the Commission to Promote Competition (COPROCOM) in the first four months of rule of law, four mergers or acquisitions of companies have been authorized

Nació reports: "It is related to the purchase of the dairy company Monteverde by Sigma Alimentos, the acquisition of Archives Beeche by Document Management Solutions SRL (DMS), the sale of El Lagar to Ashland Financial SA and the sale of Almacenes El Colono to Agricultore (sic) Advisory Corp. SA ".

The agreements were formalized in a period of thirty days from the request for their execution, said the director of the Commission to Promote Competition (Coprocom), Victoria Velasquez.

According to the Chamber of Industries of Costa Rica, the reform of this law is healthy for an economy such as the national one. However, the director of Coprocom, says new functions take up a lot of the Commission's resources, especially human ones, which causes them to be delayed in progressing other outstanding issues.

More on this topic

Conditions for Merging of Optics

April 2015

In Costa Rica the regulatory body has agreed to the commitment made by Essilor Internacional not to distort the market by blocking raw materials or price discrimination, as a condition for the purchase of Grupo Vision.

From a statement issued by the Commission to Promote Competition (COPROCOM):

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.

Controlling Mergers in Costa Rica

October 2012

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.

Competition Bulletin, the Antitrust Commission (COPROCOM):

"... a partial amendment has recently been approved to Law No. 7472, which introduces important changes in antitrust

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.