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.
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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
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'.
"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.
The reform, published in the Official Journal, includes regulations for advertising.
It provides an effective process to procedures due to complaints from consumers.
"It also creates the 'consumer associations net ' as an impulse from the state to organized civil societies, and designating the Department of Consumer Advocacy as the entity which will coordinate the efforts between these organizations and public institutions," according to Elfinancierocr.com.