HEMISPHERIC DEVELOPMENTS IN COMPETITION POLICY. THE EXPERIENCE OF COSTA RICA.

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HEMISPHERIC DEVELOPMENTS IN COMPETITION POLICY.
THE EXPERIENCE OF COSTA RICA.

• Pablo Carnevale
• Member
• Commission to Promote Competition

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BACKGROUND

• The Competition Law was enacted in 1995.
• Purpose Promote and protect the competition
  process
• Competition Authority
• Enforcement Powers
• Horizontal and vertical restraints
• Anticompetitive mergers

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EXPERIENCE OF THE COMPETITION AUTHORITY IN THE
APPLICATION OF THE LAW.

• During the first years, priority was given to
  the creation of a competition culture, as well
  as to the institutional capacity of the agency.
  For this reason, main efforts were made in the
  promotion of the law, and educational activities,
  rather than the exercise of its enforcement
  powers.
• In this period, the Commission issued non-binding
  opinions and guidelines on relevant subjects.

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EXPERIENCE OF THE COMPETITION AUTHORITY IN THE
APLICATION OF THE LAW.

• During the following years, the agency increased
  the use of its enforcement powers.
• This is reflected in the significant increase in
  the number of cases, investigated undertakings
  and remedies imposed.

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EFECTIVENESS - LEGITIMACY

• Competition law and the relationship with the
  rest of the legal system.
• Competition agency
• Procedures
• Accountabiliby

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WEAKNESSES OF THE COMPETITION REGULATION

• Unconsistency of the rest of the legal system
• Sectors Excluded
• Public Utilities
• Government Monopolies
• Mergers and Acquisitions
• Previous Notification.
• Need to develop its own standards
• Merger indexes

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WEAKNESSES OF THE COMPETITION REGULATION

• Need to establish international cooperation
  agreements that enlarge the agencys ability to
  prosecute anticompetitive conducts with
  transnational effects.
• Notification of anticompetitive practices with
  transnational effects.
• Exchange of public and confidential information.

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INCREASE OF CAPACITIES OF THE AGENCY

• Financial and administrative independence.
• Increase investigative powers.
• Add available remedies.
• Improve the specialization of the staff.

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PROCEDURES

• Procedures are not always appropriate for the
  particularities of competition cases.
• Merger and Acquisitions.
• Need to establish barganing capacity,and allow
  leniency agreements.

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IMPROVEMENT OF THE ACCOUNTABILITY SYSTEM

• Courts
• Judicial control is late and courts are not
  specialized in Competition Law.
• Other groups
• Consumer organizations
• Academic sector
• Media

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Future Challenges

• Improvement of existing regulations.
• Strenghtening of the institutional capacity of
  the competition agency.
• Promote competition culture.
• Improvement of the accountability system.