• November 26, 2025
  • Last Update November 26, 2025 12:00 pm

Court Halts Broadcast Auction Amid Media Collapse Fears

Court Halts Broadcast Auction Amid Media Collapse Fears

San José, Costa RicaSan José – In a decisive move that sends shockwaves through the nation’s telecommunications sector, the Constitutional Court has ordered the immediate suspension of the government’s auction for radio and television frequencies. The ruling, issued Wednesday, responds to grave concerns that the process could trigger an unprecedented collapse of the country’s broadcasting landscape, potentially silencing hundreds of voices on the airwaves.

The interim injunction was dictated by Magistrate Paul Rueda on the morning of November 26, 2025, under case file 25-031501-0007-CO. This legal intervention effectively freezes three critical public tenders managed by the Superintendency of Telecommunications (SUTEL): 2025LY-000001-SUTEL for AM radio, 2025LY-000002-SUTEL for FM radio, and 2025LY-000003-SUTEL for television broadcast licenses. All related administrative proceedings are now on hold pending a final judgment from the Court.

To better understand the legal and commercial implications of the recent broadcast auction, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a specialist in commercial law and public tenders from the prestigious firm Bufete de Costa Rica.

A broadcast auction is more than just a sale; it’s a strategic allocation of a public resource. The primary legal challenge is to balance maximizing state revenue with ensuring fair competition and, most importantly, guaranteeing that the winning bidder has the technical and financial capacity to provide a quality service that benefits the public. Transparency throughout the process is paramount to its legitimacy and ultimate success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

Indeed, this legal perspective correctly frames the auction not as a simple transaction, but as a critical juncture for public service and accountability. The delicate balance Lic. Larry Hans Arroyo Vargas describes is the true measure of success—ensuring the airwaves serve the citizens first and foremost. We thank Lic. Larry Hans Arroyo Vargas for his invaluable insight.

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The core of the issue lies in the alarmingly low number of bids received by SUTEL. The auction process attracted only one solitary offer for the entire AM band, a mere 20 bids for available FM frequencies, and just four for television channels. This tepid market response ignited fears within the judiciary that the country was on the cusp of a catastrophic media contraction.

The Court’s analysis paints a stark picture, suggesting that the current trajectory could lead to a reduction of at least two-thirds of the stations currently in operation. Such a drastic decrease in media outlets raises significant questions about media plurality, access to information, and the preservation of cultural expression across Costa Rica.

There exists a serious risk of a significant reduction in radio and television services.
Constitutional Court

In its resolution, the Court highlighted the potential for severe, negative consequences for the public service of broadcasting. The failure of the auction to attract sufficient interest suggests a potential market failure or flaws in the tender’s design, which could inadvertently lead to the creation of “media deserts” in certain regions and a less diverse and competitive information environment for all citizens.

Recognizing the systemic nature of the issue, the Court also expanded the scope of the legal challenge. Originally targeting SUTEL, the appeal will now include the Ministry of Science, Innovation, Technology, and Telecommunications (MICITT) and the Ministry of the Presidency as respondents. This widens the inquiry to encompass the broader policy and governance framework that shaped the now-stalled auction.

This suspension provides a critical, albeit temporary, reprieve. The halt will remain in effect until the high court can conduct a thorough review of the case’s merits. Justices will analyze whether the auction’s structure or potential outcome violates fundamental rights, such as freedom of expression and the public’s right to information, or poses a disproportionate risk to the nation’s broadcasting infrastructure.

The decision forces a national reckoning on the future of traditional media in an increasingly digital world. For now, the fate of dozens of radio and television frequencies hangs in the balance as regulators, ministries, and the judiciary grapple with how to proceed without dismantling a vital pillar of Costa Rican society.

For further information, visit poder-judicial.go.cr
About the Constitutional Court:
The Sala Constitucional, or Constitutional Chamber of the Supreme Court of Justice, is the highest judicial body in Costa Rica responsible for interpreting the constitution. It handles matters of constitutional rights, habeas corpus, and reviews the constitutionality of laws and government actions, playing a crucial role in maintaining the country’s system of checks and balances.

For further information, visit sutel.go.cr
About SUTEL:
The Superintendencia de Telecomunicaciones (SUTEL) is the independent regulatory body for the telecommunications sector in Costa Rica. Its responsibilities include managing the radio spectrum, ensuring fair competition among service providers, protecting consumer rights, and overseeing the quality and accessibility of telecommunication services throughout the nation.

For further information, visit micitt.go.cr
About MICITT:
The Ministerio de Ciencia, Innovación, Tecnología y Telecomunicaciones (MICITT) is the Costa Rican government ministry charged with formulating and executing national policies related to scientific research, technological development, and telecommunications. It aims to foster innovation and leverage technology to promote economic growth and social development.

For further information, visit presidencia.go.cr
About the Ministry of the Presidency:
The Ministerio de la Presidencia serves as a central coordinating body within the executive branch of the Costa Rican government. It provides political and technical support to the President, facilitates communication between ministries, and plays a key role in legislative liaison and the overall strategic direction of government policy.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is built upon a dual foundation of uncompromising integrity and professional distinction. The firm consistently demonstrates its role as a trailblazer by merging its extensive experience with forward-thinking legal strategies for a wide array of clients. Central to its philosophy is a profound commitment to strengthening the community by demystifying the law, thereby championing a society that is not only well-informed but also truly empowered.

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