December 2022
Frontpage
Competition studies
Investigations
Recommended reading
FRONTPAGE
Andrea Marván Saltiel, new commissioner of Cofece
Andrea Marván Saltiel, new commissioner of Cofece
After being ratified by the Plenum of the Senate of the Republic, Andrea Marván Saltiel took office as commissioner of the Federal Economic Competition Commission (Cofece) for a nine-year term. With her ratification, the Board of Commissioners of Cofece is strengthened by having five positions filled out of a total of seven. Andrea Marván Saltiel was proposed by the head of the Federal Executive, after passing the knowledge exam applied by the Evaluation Committee, provided for in Article 28 of the Political Constitution of the United Mexican States.
The new commissioner holds a degree in Law from the Universidad Iberoamericana and a master's degree in the same subject from the University of Chicago. Marván Saltiel is also a professor at the Tecnológico de Monterrey, Santa Fe campus. In addition, she has ten years of professional experience at Cofece, where until December 13, she served as general director of Competition Advocacy
COMPETITION STUDIES
Cofece identifies competition and free market access problems in insurance of medical expenses and proposes a set of recommendations to mitigate them.
Cofece presented its Estudio de competencia y libre concurrencia en seguros de gastos médicos [Study of competition and free market access in insurance of medical expenses]. In which it identified, among other competition and free market access problems, that:
- The related market for hospital services is not very transparent.
- Consumers face high costs for switching insurers.
- The way insurance agents are remunerated hinders the entry of new companies and there is legal uncertainty that could be hindering the entry of insurtech companies (new technologies with the potential to bring innovation to the insurance sector and impact regulatory practices in insurance markets).
- The insurance of medical expenses market is highly concentrated, as the four insurers with the largest share issue 75% of the premiums, and the prices of premiums for these services show an upward trend.
With the objective of promoting competition and free market access, Cofece proposed various recommendations grouped under four areas:
- Promote transparency in the market of hospital services;
- Promote consumer mobility by establishing mandatory portability of seniority.
- Decrease of search costs for consumers.
- Reduction of barriers to entry for new competitors.
Cofece presented its Estudio de competencia y libre concurrencia en seguros de gastos médicos [Study of competition and free market access in insurance of medical expenses]. In which it identified, among other competition and free market access problems, that:
- The related market for hospital services is not very transparent.
- Consumers face high costs for switching insurers.
- The way insurance agents are remunerated hinders the entry of new companies and there is legal uncertainty that could be hindering the entry of insurtech companies (new technologies with the potential to bring innovation to the insurance sector and impact regulatory practices in insurance markets).
- The insurance of medical expenses market is highly concentrated, as the four insurers with the largest share issue 75% of the premiums, and the prices of premiums for these services show an upward trend.
With the objective of promoting competition and free market access, Cofece proposed various recommendations grouped under four areas:
- Promote transparency in the market of hospital services;
- Promote consumer mobility by establishing mandatory portability of seniority.
- Decrease of search costs for consumers.
- Reduction of barriers to entry for new competitors.
INVESTIGATIONS
In the national flat glass market and products manufactured from flat glass
The Investigative Authority of Cofece published on its website and in the Federal Official Gazette, the notice of initiation of an ex officio investigation for the possible realization of agreements to manipulate prices, restrict supply or coordinate bids in tenders (absolute monopolistic practices) in the market for the production, distribution and commercialization of flat glass and products manufactured from it in the national territory
This investigation must not be understood as a prejudgment on the responsibility of any economic agent, since up to now no infringements to the regulations on economic competition have been identified, nor the subject or subjects who, if applicable, would be considered as probably responsible at the end of the investigation.
The Investigative Authority of Cofece published on its website and in the Federal Official Gazette, the notice of initiation of an ex officio investigation for the possible realization of agreements to manipulate prices, restrict supply or coordinate bids in tenders (absolute monopolistic practices) in the market for the production, distribution and commercialization of flat glass and products manufactured from it in the national territory
This investigation must not be understood as a prejudgment on the responsibility of any economic agent, since up to now no infringements to the regulations on economic competition have been identified, nor the subject or subjects who, if applicable, would be considered as probably responsible at the end of the investigation.
RECOMMENDED READING
What does Mexico gain when there is competition?
As a result of the interventions of Cofece, markets may observe effects such as price reductions, quality improvements, entry of new competitors, savings in public finances or the prevention of market structures with opposite effects to those listed above. The identification and measurement of these effects is a complex task due to the large number of factors that intervene, which make it difficult to construct and identify counterfactual scenarios.
For this reason, Cofece promotes that its interventions are evaluated, through ex post assessments, by academics and experts in matters of competition once the markets have incorporated their effects. This contributes to improving the quality of future interventions and, simultaneously, generates results that can be disseminated.
As a part of said exercise, this book presents eight assessments conducted on interventions of Cofece and its predecessor, the Federal Competition Commission (CFC) in different markets. The first two were conducted by the General Directorate of Planning and Evaluation and the remaining six by renowned experts in the matter.
BY THE NUMBERS
BY THE NUMBERS
In December, the Commission handled 102 matters, of which 50 correspond to concentrations, 29 to procedures for monopolistic practices and prohibited concentrations, 6 special procedures and 17 opinions on tenders, concessions or permits.
Complaints, investigations, and trial-like procedures
- 3 complaints for anticompetitive conducts were received, which were added to the 2 complaints received in November; therefore, at the end of the period, 5 complaints remain under analysis.
- Follow-up was made to 21 investigations for monopolistic practices.
- 3 trial-like procedures were followed-up.
- 5 procedures for barriers to competition are being processed.
- Follow-up was made to 1 investigation to determine whether there are effective competition conditions in the maritime transport of passengers and roll-on/roll-off cargo in Baja California Sur
Concentrations
- 50 concentrations were reviewed, of which 7 were authorized; therefore, at the end of the period 43 concentrations remain under analysis.1
- The amount of the authorized operations is of $19,020.4 million Mexican pesos.
Opinions
- During the period, 1 opinion was issued concerning the draft decree by which the General Law of Adequate Nutrition is enacted.
Amparo trials
- During December, the Judicial Power of the Federation resolved 9 amparo trials: 2 were granted, 2 were denied and 5 were dismissed.2 At the end of the period, 471 trials are still in process, of which 391 correspond to economic competition matters.
INFORMACIÓN relativa a los ingresos, egresos, saldos y destino de los Fideicomisos en los que participa la Comisión Federal de Competencia Económica, en cumplimiento a lo que establece el artículo 12 de la Ley Federal de Presupuesto y Responsabilidad Hacendaria.