Asunción Municipality Fined 1.24 Billion Guaranis for Pest Control Monopoly

The Municipality of Asunción faces a hefty fine of 1.244 billion Paraguayan guaranis from the National Competition Commission (Conacom). Conacom determined that the municipality established a monopoly on pest control services, abusing its dominant position and blocking private companies authorized by the Ministry of Health.

The commission's resolution stems from a complaint filed in October 2024 by the Paraguayan Chamber of Pest Control. Conacom found that Municipal Ordinance N° 132/2024 mandates businesses to exclusively use municipal disinfection services for license renewals. This effectively nullifies private sector certifications and forces a monopoly, preventing businesses from choosing potentially more economical or efficient private providers.

Conacom ruled that the municipality acted as a dominant economic agent in Asunción's environmental sanitation market. By charging specific fees for services identical to those offered by the private sector, the public institution distorted free competition. The ordinance requires local industries and businesses to pay disinfection fees solely to the municipality to obtain their permits.

In addition to the fine, Conacom has imposed corrective measures. The municipality is required to dismantle the exclusive regime within a strict, non-extendable six-month period. Local regulations must be updated to fully recognize and allow competition from the private sector, ensuring a fairer market for pest control services.