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September 2024
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Cofece investigates the possible existence of unlawful exclusivities in payment services, deposits, and cash withdrawals in stores
Cofece investigates the possible existence of unlawful exclusivities in payment services, deposits, and cash withdrawals in stores
The Investigative Authority of the Federal Economic Competition Commission (Cofece) initiated an ex officio investigation to determine whether any company abused its market power and established unlawful exclusivities in services that allow the population to make payments, deposits, and cash withdrawals in stores. These services are important as they allow Mexicans to pay for goods and services or withdraw cash, even if they do not have a bank account.
When a dominant company establishes exclusivities, it forces suppliers or sellers to only offer or purchase its products or services. By preventing other competitors from participating, consumers have fewer options and are captive to the prices set by the company that has the exclusivity.
BY THE NUMBERS
BY THE NUMBERS
During September, the Commission processed 123 matters, of which 73 correspond to mergers, 28 to proceedings for monopolistic practices and unlawful mergers, 4 to special procedures. and 18 to opinions on bidding processes, concessions, and permits.
Complaints, investigations, and trial-like proceedings
- 5 complaints were analyzed, 2 of which were filed during the period. Of these, 2 were dismissed and 3 were still under analysis at the end of the month.
- 16 investigations for monopolistic practices and unlawful mergers were followed up on.
- 7 trail-like proceedings were followed up, one of which concluded with the imposition of sanctions for more than 237 million pesos on the economic agents responsible for manipulating prices in the waterproofing market and disqualified five executives involved in the conduct. At the end of the period, 6 proceedings were still in process.
- 4 special procedures were followed up to determine the existence of essential facilities and barriers to competition; 1 move into a second stage after concluding, on a preliminary basis, that there are no competition conditions in the nixtamalized corn flour market.
Mergers
- 73 mergers were followed up, 19 of which were notified during the period. Of these transactions, 15 were authorized, two were closed due to the withdrawal of the notifying parties, and 56 were still under analysis at the end of the period.1
- The amount of authorized transactions was $41,097.5 million pesos.
- The file numbers of the authorized mergers are: CNT-049-2024 (Grupo MCM, S.A. de C.V. / Casa Montelobos, S.A.P.I. de C.V. / Campari España, S.L.U.), CNT-055-2024, CNT-057-2024 (PLV Fans Rewards, S.A. de C.V. / Grupo Viva Aerobus, S.A. de C.V. / Allegiant Travel Company / Allegiant Air, Llc. / Aeroenlaces Nacionales, S.A. de C.V.), CNT-058-2024, CNT-060-2024, CNT-061-2024, CNT-062-2024, CNT-063-2024, CNT-075-2024 (Justo Inc. / General Atlantic (JS), L.P.), CNT-077-2024 (Star Japan Holdings Co., Ltd. / Star Japan Acquisition Co., Ltd. / Panasonic Holdings Corporation / Panasonic Automotive Systems Co., Ltd. / Apollo Advisors X, L.P. / Apollo Advisors X), CNT-079-2024 (Corkrys Iota S.A. / Codere New Topco, S.A.), CNT-083-2024 (Naturesweet Holdings, LP / JV Agro, S. de R.L. de C.V. / Banco Actinver, S.A., Institución de Banca Múltiple, Grupo Financiero Actinver / Personas Físicas), CNT-086-2024 (Sooke Investments, Inc. / Nature Sweet Super Holdings, LLC), CNT-087-2024 (Hanon Systems / Hankook Tire & Technology Co., Ltd. / Hahn & Co. Auto Holdings Co., Ltd), CNT-099-2024.
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Basic concepts of competition in the digital economy
Competition in digital markets has a direct impact on the innovation of companies, the emergence of new businesses, and better digital services. When there is competition in these markets, start-ups have greater opportunities to participate, and existing companies have incentives to innovate and reduce costs. This results in greater availability of products and prices for consumers, and the inclusion of lagging groups in new markets generates a favorable investment environment and contributes to inclusive economic development.
This document developed by the Directorate General of Digital Markets of Cofece helps anyone to understand the basic concepts of economic competition related to the digital economy, especially regarding the dynamics of digital markets and platforms.
This booklet is a valuable tool for users and consumers to become aware of the particularities of digital markets and how they affect them from a competitive perspective. The concepts covered, as along with the benefits and risks of the digital economy, provide the necessary tools to navigate the Internet, use online platforms, shop online, and interact on a social network, among other daily life activities.