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

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Competition Law in Guatemala

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