A. Act ruling the antitrust law in Costa Rica

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The act ruling antitrust law in Costa Rica is law number 7472 of Promotion of Competition and Effective Consumer Defense and its regulation D-25234.

B. Authority that monitors the compliance with the anti-trust law

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The authority that monitors the compliance with the anti-trust law is the Costa Rican Competition Promotion Commission, also known as COPROCOM or CPC. This Commission is controlled by the Ministry of Economic, Industry and Commerce (Ministerio de Economía, Industria y Coemercio). Any process regarding anti-trust law is considered as an administrative process. Therefore according to article 21 of law 7472 one has to exhaust all available administrative remedies before going to the judiciary tribunals (exception made by law of article 17).

C. Preconditions for applying the respective act

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The act is to be applied to both absolute (article 11) or relative (article 12) monopolies, to mergers (article 16) and to unfair competition (article 17). In order to apply the respective act to antitrust behavior the law requires determining the relevant market (article 14) and that undertakings have a substantial power in the relevant market (article 15).

The following issues have to be considered regarding the preconditions:

I. Relevant market (Article 14)

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a) The possibility of replacing the goods or services concerned, for others of national origin or from abroad, given the technological possibilities, the extent to which consumers have substitutes and the time required to effect such substitution.

b) The distribution costs of the good itself, its inputs, complementary parts and
substitutes from other parts of the country and abroad. Regarding this section one must consider freight, insurance, tariffs and non tariff restrictions and the limitations imposed by the operators or their organizations and the time required to supply the market from other sites.

c) The costs and scope for consumers to turn to other markets.

d) The regulatory restrictions, national or international, to limit the access of consumers to alternative sources of supply, or from suppliers to customers alternative

II. Substantial power in the relevant market (Article 15)

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a) The undertakings participation in this market and its ability to set prices unilaterally or to restrict substantially the supply in the relevant market, without other undertakings having the possibility of counter that power now or in the near future.

b) The existence of entry barriers and the elements that are expected to alter both barriers such as the provision of other competitors.

c) The existence and power of its competitors.

d) The potential access by the undertaking and its competitors to sources of inputs.

e) The undertaking´s recent behavior.

f) Any other similar criteria established in the regulations of this Law. 

References 

Ley de Promoción de la Competencia y Defensa Efectiva del Consumidor, No 7472 del 20 de diciembre de 1994. 

Reglamento a la Ley de Promoción de la Competencia y Defensa Efectiva del Consumidor, No 25234-MEIC del 1 de julio del 1996.