Costa scored 36 times for Atletico last season as the capital outfit won La Liga and reached the final of the Champions League.
However, the 25-year-old failed to make an impact for his country at the World Cup, with La Roja losing both of their Group B matches in Brazil.
"With the result as it is, it would also be very easy to say that Diego Costa didn't work out. Spain were used to playing at one rhythm and one pace, while Costa offers other characteristics. If you don't take advantage of Costa's runs, you isolate him," Simeone wrote on a column for Sony.
"He likes to exploit the spaces, to attack from deep positions and to get on the end of final passes, but Spain's football focuses more on the collective.
"Playing that collective game, Spain haven't performed at their best, nor were they able to take advantage of Costa and the characteristics he brings."
Costa is almost certain to join Chelsea this summer.