Non-negligible transaction costs restrict the transmission of price shock between markets. The aim of this work was to analyze the effects of transaction costs on the spatial integration of the internal market for chicken meat, from 1998 to 2007. The applied methodology was based on the Threshold Cointegration Analysis. The results indicate the presence of significant barriers to the price transmission between the markets, existing probably due to the transaction costs. Prices are not very sensitive to eventual deviations of the long run equilibrium. It could also be noted that a relatively long period is necessary to eliminate price shocks, and the price transmission process is asymmetric.