Paraguay does not require operators with significant market power (SMP) in the telecommunications sector to implement functional separation. However, it is reported that SMP operators are subject to accounting separation obligations.

Law No. 642 regulates the concession, license or authorisation to provide telecommunication services. According to Art. 70 of the Law No. 642 and Art. 67 of the Decree No. 14135, concessions, licences and authorisations are subject to the payment of a concession fee, which must be paid within 60 days of their grant or renewal, on a one-off basis for each period. In order to sign the concession contract, the concessionaire must provide proof of prior payment of the concession fee, whose amount is established in the CONATEL Board Resolution No. 3523/2024 on the Procedure for Determining the Minimum Amount Payable as Licence, Authorisation, Licence Extension and Licence Renewal Fees under the Demand-Driven Regime Moreover, there is an annual fee for the commercial exploitation of the services, which can be up to 1% of the provider’s gross income. It is also reported that there is a minimum capital requirement to obtain a licence.

Paraguay has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

According to Law No. 642 of Telecommunications, the National Telecommunications Commission (CONATEL), the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.

It is reported that, although shareholders of Paraguayan companies may be natural or legal persons regardless of their residence status, directors, managers and legal representatives must be Paraguayan citizens or foreigners with valid residence permits in Paraguay.

Paraguay is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).

According to Art. 33 of the Public Procurement and Contracting Law, international contracting may only be pursued under two conditions: (i) when a market analysis conducted by the bidder determines that no domestic suppliers, consultants, or contractors are able to offer the required goods, services, consulting, or work, either in terms of quantity, quality, or price; or (ii) when, following a national call for bids, no proposals are submitted, or none meet the requirements specified by the bidder. Art. 33 further establishes the obligation to register an address in Paraguay or to designate a local representative for the purposes of the relevant communications at the time of contracting in the case of a foreign bidder.

According to Art. 33 of the Public Procurement and Contracting Law, in international contracting procedures, the bidders shall grant the benefit of a 10% margin of preference to bids that incorporate (i) the use of the country's human resources and (ii) the acquisition and lease of goods produced in the Republic of Paraguay.

In accordance with Art. 27 of the Public Procurement and Contracting Law, an Annual Public Procurement Program is established to promote micro, small, and medium-sized enterprises (MSMEs). This program must specify expenditure items and categories from the Catalogue of Goods, Services, Consultancy, and Public Works that are designated for preferential contracting with MSMEs. The Law requires each entity to set an annual market reserve for MSMEs, aiming to reach 20% within a period not exceeding five years from the law's enactment.

Paraguay is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2019.

It is reported that the telecommunications sector is open to competition, except for fixed lines and international carrier services, which remain under State monopoly with the "Compañía Paraguaya de Comunicaciones". This is despite full foreign ownership being allowed in the telecommunications sector.

Pursuant to Art. 11(b) of Resolution No. 049/2025 de minimis threshold, that is the minimum value of goods below which customs do not charge duties, is PAB 100 (approx. USD 100), below the 200 USD threshold recommended by the International Chamber of Commerce (ICC).

Law No. 45 and Executive Decree No. 24 provide a comprehensive framework for consumer protection that also applies to online transactions. Law No. 45 regulates consumer relations and specifies consumer rights, including suppliers' responsibilities to consumers. Executive Decree No. 24 also provides provisions applicable to technological storage services and commercial services through the Internet.

Panama has signed but not ratified the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.