Mergers and Monopolies in Costa Rica

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).

Monday, September 19, 2011

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. In contrast, prior notification of concentrations is the most frequently used mechanism to control concentrations, being more effective as a preventive tool, since it avoids the difficulties of dismantling an operation that has already taken place.

Recently, a regulation on the Law on Promotion of Competition and Effective Consumer Defense, Law No. 7472 was amended, establishing the possibility of submitting to the COPROCOM a voluntary communication of a merger (Article 34 et seq.)

In this way operations by economic agents who wish to merge can be subjected to prior analysis by the COPROCOM in order to determine whether it could generate anticompetitive effects which would then imply the illegality of the transaction.

More on this topic

Costa Rica: Competition Commission vs. Government

July 2015

Running counter to a recommendation from the OECD to strengthen the independence and resources of work by the bodies that oversee competition, the Ministry of Finance will be intervening in the Commission's own tasks.

An article on reports that "... A restructuration managed from the office of the Minister of Economy, Welmer Ramos, has resulted in the temporary disintegration of the Commission for the Promotion of Competition (COPROCOM) from 1 July. "

How Antitrust Law in Costa Rica Works

July 2013

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

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

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'.

Competition Law in Guatemala

October 2010

"The monopoly itself is not the problem, the problem is the abuse that is committed" Erick Coyoy, Minister of Economy.

The main priorities set by the Minister of Economy revolve around the obligations of the country and the region, the agreements reached with the European Union, which refer to integration of the isthmus and in particular customs and promoting market competition.