Colombia’s Council of State has provisionally suspended several sections of Resolution 20231000019054 of 2023, through which Coljuegos had regulated the advertising of betting platforms authorized in the country.
The precautionary measure renders ineffective, while the nullity process advances, the limits on advertising investment, the sanctions, the fines, and the grounds for unilateral termination of concession contracts due to advertising-related breaches.
The decision comes as a result of a lawsuit filed by Sora Lawyers against the regulation. According to the High Court, some of the provisions of the rule could violate constitutional principles related to economic freedom and free competition.
The suspension includes the article that established caps on operators’ advertising investment. This rule set a limit equivalent to 20% of a base calculated on companies’ revenue or a maximum of 11,000 current legal monthly minimum wages.
Also, the rules that imposed sanctions, fines, and grounds for unilateral termination of concession contracts due to advertising-related breaches were provisionally rendered ineffective.
Likewise, the rules that allowed concession contracts to be denied over issues related to registered trademarks, advertising, or suppliers linked to the operator were suspended. Added to this are the obligations to submit advertising investment plans and detailed documentation supporting marketing expenses to Coljuegos.
Another of the annulled points required obtaining prior authorization from the regulator for certain share purchase operations in concessionaire companies. That condition applied when circumstances linked to advertising activity existed.
According to Sora Lawyers, several of the measures exceeded the regulator’s authority and harmed economic and business rights. The High Court considered the objections well-founded in relation to the legal reserve required to impose sanctions and restrictions of this kind.
The firm has said that the decision represents “an important step toward strengthening the sector’s legal certainty and ensuring a balance between public oversight and operators’ rights.”