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Complaints against the State for alleged monopolistic practices were filed

October 12, 2016 by Staff News Writer

Representatives from the Commission to Promote Competition (COPROCOM) received the complaint filed by the business sector. It is against the State for alleged monopolistic practices, which is backed by industries and traders. A study of admissibility must issue an outcome in the next few days.

The complaint was filed by the Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP) they argue that the government is violating Article 2 from the Law on Public Procurement and also misusing the 023-H guideline, published on April 20th, 2015 to privilege the hiring in public institutions.

If a serious breach of those rules is determined, the fine could reach up to 10% of the annual income obtained by the offender in its ordinary activities during the preceding fiscal year. In addition, a suspension, correction or deletion of the prohibited practice could be demanded.

Franco Arturo Pacheco, president of the UCCAEP, stressed that the government is legally violating Article 2, because both the Constitutional Court and the Office of the Comptroller General of the Republic have highlighted the exceptional nature of the standard.

The UCCAEP is listing 46 contracts, justified in Article 2, for more than 32,400 million colones from 2014 to 2016, related to telecommunications services, technology and information systems.

The concern of this group had the support of the Chamber of Commerce of Costa Rica (CCCR) and the Chamber of Industries of Costa Rica (ICRC), which are requesting an investigation over the practices which represent obstacles or difficulties for free competition and trade. Both executive directors from CCCR and ICRC are calling for the public procurement to be more efficient.

crhoy.com

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