Costa Rica: Update on Competition Law

ARIAS informs its clients about a relevant institutional situation affecting merger control processes in Costa Rica.

The Higher Body of the Commission to Promote Competition is the collegiate body responsible for issuing final resolutions in merger review cases. Its role is essential, as it grants the formal approval necessary for the closing of transactions.

Currently, this Higher Body has not been formed because the appointments of its members have expired. Its formation depends on the Superior Council of Government making recommendations to the Legislative Assembly, which must then make the new appointments.

Consequently, the Higher Authority is not holding sessions or issuing transaction approvals. However, the initial review stage remains active: requests for information and the analysis of transactions are being carried out within the established timeframes. Final resolutions are not being issued.

While local legislation stipulates automatic approval upon expiration of the legally mandated timeframe, the Authority is disregarding this rule and is not allowing transactions to close without formal approval from the Higher Authority. This situation creates uncertainty for transactions currently underway or about to be submitted. At ARIAS, we are closely monitoring this issue, analyzing potential alternatives, and collaborating with the Authority to identify practical solutions.

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