Asunción Municipality fined over $1 million for disinfection service monopoly

The National Competition Commission (Conacom) has fined the Municipality of Asunción 1.244 billion Paraguayan guaranis (approximately $1 million) for establishing a monopoly in disinfection services. The commission found that an ordinance enacted during the administration of Óscar “Nenecho” Rodríguez created an abuse of dominant position, preventing private companies authorized by the Ministry of Health from competing.

Conacom's resolution penalizes the municipality, currently led by Luis Bello, with a fine equivalent to 429 minimum wages. The investigation began following a complaint filed in October 2024 by the Paraguayan Chamber of Pest Control. The municipal ordinance N° 132/2024 required businesses to exclusively contract disinfection services from municipal operators, invalidating certificates from private firms and creating a monopoly.

The regulatory body determined 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 fair competition. This mandate forced local businesses to pay municipal fees for disinfection to renew their licenses, preventing them from choosing potentially more economical or efficient private alternatives.

In addition to the fine, Conacom has mandated corrective measures, requiring the municipal administration to dismantle the exclusive regime within a strict six-month deadline. The ruling demands that local regulations be updated to fully recognize and permit private sector participation in disinfection services.