On June 24, Costa Rica published Law No. 10946, “Governance of Digital Services and Electronic Commerce,” which will enter into force in 12 months.

The new legislation establishes a series of principles and rules governing electronic contracting, e-commerce, and consumer protection in digital environments, aligning Costa Rica more closely with international standards. Any company that offers goods or services through digital channels may be affected by these new requirements.

In our view, the law may create certain risks of overlap or conflict with existing regulations and the powers of regulatory authorities in areas such as data protection, telecommunications, and financial services.

Drawing on several elements of the European Union’s Digital Services Act (DSA), the law establishes obligations for search engines, online platforms, and other digital services, particularly so-called intermediary services. It remains to be seen whether platforms operating from outside Costa Rica will adapt their operations to comply with these rules. While the law includes a definition of “cross-border digital services,” it does not appear to assign specific legal consequences to that concept.

Unlike the European Union’s Digital Markets Act (DMA), the Costa Rican legislation does not address competition issues in digital markets.

Enforcement of the law will be entrusted to the National Consumer Commission, an agency within the Ministry of Economy. A key challenge will be ensuring that the institution has the resources and capacity necessary to carry out these responsibilities effectively. Businesses operating in the digital economy should stay informed and monitor forthcoming regulations.