Advantages and Limitations of Costa Rica's Experience in Competition Policy. A Benchmark for the Rest of the Countries of the Central American Region

The Law on Promotion of Competition and Effective Consumer Protection (N° 7472) was enacted on December 19, 1994 (LPCDEC). Its chief objective is to promote and protect the process of unrestricted competition, as well as consumer rights and interests, by preventing and prohibiting monopolies, monopolistic practices and other restrictions on efficient market operation and eliminating unnecessary regulations governing economic activities. To implement antimonopoly standards the Law created the Commission to Promote Competition (CPC), which began operating in January 1996. The purpose of this study is precisely to appraise the work of these ten years of CPC, with the aim of assessing the experiences, challenges and certain lessons that could serve other countries of the region. In this regard, the context in which Costa Rican regulation came about is similar to that of other countries. The latter are characterized by being small economies, with scarce resources and with a scant culture of competition. Nevertheless, within this reality significant progress has been made which could serve as a reference point for these nations.