April 2023
Frontpage
Competition advocacy
Accountability
Recomended reading
FRONTPAGE
Cofece notifies a statement of probable responsibility to economic agents and natural persons for possible unlawful concentrations in the market of gasoline and diesel
Cofece notifies a statement of probable responsibility to economic agents and natural persons for possible unlawful concentrations in the market of gasoline and diesel
The Investigative Authority (AI, per its initials in Spanish) of the Federal Economic Competition Commission (Cofece or Commission) notified a statement of probable responsibility to various economic agents for possible unlawful concentrations and the possible omission of the notification of concentrations in the market of commercialization and distribution of gasoline and diesel, as well as the retail sale of such products in service stations in the national territory.
The AI reached this conclusion after analyzing the evidence obtained during the corresponding investigation under file number IO-001-2019, which concluded on November 29, 2022.
COMPETITION ADVOCACY
Cofece initiates a study on competition and free market access in the natural gas market
The Board of Commissioners of the Federal Economic Competition Commission (Cofece or Commission) approved the conduction of a study in matters of free market access and economic competition in the markets for the production, distribution, and commercialization of natural gas.
This study is aligned with the institutional objectives and the priority sectors that are defined in the 2022-2025 Strategic Plan and will add to the actions carried out in the markets with the greatest impact on the welfare of the population.
The Board of Commissioners of the Federal Economic Competition Commission (Cofece or Commission) approved the conduction of a study in matters of free market access and economic competition in the markets for the production, distribution, and commercialization of natural gas.
This study is aligned with the institutional objectives and the priority sectors that are defined in the 2022-2025 Strategic Plan and will add to the actions carried out in the markets with the greatest impact on the welfare of the population.
ACCOUNTABILITY
2023 First Quarterly Report
With the publication of the 2023 First Quarterly Report, the Commission complies with the provisions of section VIII of the twentieth paragraph of Article 28 of the Political Constitution of the United Mexican States; as well as section XXV of article 12 and article 49 of the Federal Economic Competition Law (LFCE, per its initials in Spanish). The Board of Commissioners of Cofece approved the 2023 First Quarterly Report during its eighteenth ordinary session of 2023, held on April 20, in accordance with the provisions of section IX of article 20 of the LFCE and section XIX of article 5 of the Organic Statute of the Federal Economic Competition Commission.
The report describes Cofece's activities from January 1st to March 31st, 2023, and reports on its performance in relation with institutional objectives and goals, as well as the progress made in the fulfillment of its Annual Work Program (PAT, per its initials in Spanish).
Chapter 1 informs about the actions taken to prevent and correct market structures that hinder, harm or impede competition and free market access; chapter 2 describes the activities related to the fight against and deterrence of anticompetitive practices affecting markets; chapter 3 reports on the work carried out by the Commission to promote and disseminate the principles of economic competition and its benefits; chapter 4 reports on the efforts of Cofece to consolidate a robust and cutting-edge organizational model; and chapter 5 reports on the follow-up of the 14 strategic actions defined in the Commission's 2023 PAT.
With the publication of the 2023 First Quarterly Report, the Commission complies with the provisions of section VIII of the twentieth paragraph of Article 28 of the Political Constitution of the United Mexican States; as well as section XXV of article 12 and article 49 of the Federal Economic Competition Law (LFCE, per its initials in Spanish). The Board of Commissioners of Cofece approved the 2023 First Quarterly Report during its eighteenth ordinary session of 2023, held on April 20, in accordance with the provisions of section IX of article 20 of the LFCE and section XIX of article 5 of the Organic Statute of the Federal Economic Competition Commission.
The report describes Cofece's activities from January 1st to March 31st, 2023, and reports on its performance in relation with institutional objectives and goals, as well as the progress made in the fulfillment of its Annual Work Program (PAT, per its initials in Spanish).
Chapter 1 informs about the actions taken to prevent and correct market structures that hinder, harm or impede competition and free market access; chapter 2 describes the activities related to the fight against and deterrence of anticompetitive practices affecting markets; chapter 3 reports on the work carried out by the Commission to promote and disseminate the principles of economic competition and its benefits; chapter 4 reports on the efforts of Cofece to consolidate a robust and cutting-edge organizational model; and chapter 5 reports on the follow-up of the 14 strategic actions defined in the Commission's 2023 PAT.
RECOMENDED READING
Transition towards Competitive Energy Markets: LP Gas
The LP Gas industry works as a value chain comprised of various links and activities that begins in the production plants or points of entry of the product to the national territory, including commercialization, transportation and storage activities, and culminate with distribution and retail sale activities. Under free market conditions, each link in the chain is object of a system of interrelated prices through which the final sale price to the public is determined.
Given that LP Gas is an essential fuel for the lives of Mexicans (76% of households use it as the main fuel for cooking food), it is a priority to determine to what extent structural problems in the different links of the value chain explain the recent behavior of prices. The objective of this document, published in 2018, is to analyze the structure and conditions of intermediate markets in the value chain to identify the obstacles that could limit the consolidation of an efficient and competitive market and to issue recommendations to the competent authorities for the formulation of public policies that could favor conditions of competition and free market access. The above under the premise that, in order to lower LP Gas retail prices, it is necessary for all activities in the chain to be carried out in a competitive environment.
BY THE NUMBERS
BY THE NUMBERS
In April, the Commission processed 105 matters, of which 53 correspond to concentrations, 33 to procedures for monopolistic practices and unlawful concentrations, 5 related to special procedures and 14 to opinions on bidding processes, concessions or permits.
Complaints, investigations, and trial-like procedures
- 3 complaints for anticompetitive conducts were received, which were added to 5 pending from the previous period. Of these, 1 was dismissed and one was deemed as not presented; therefore, at the end of the period, 6 complaints are still under analysis.
- Follow-up was made on 19 investigations for monopolistic practices.
- 1 trial-like procedure was initiated for possible unlawful concentrations in the market of gasoline and diesel, which was added to the 5 pending procedures from the last period.
- 4 procedures to determine the existence of essential inputs and barriers to competition are still ongoing.
- Follow-up was made on 1 investigation to determine effective competition conditions in the maritime transportation of passengers and roll-on/roll-off cargo in Baja California Sur.
Concentrations
- A total of 53 concentrations were reviewed, of which 9 were initiated during the period. Of these, 8 were authorized; therefore, at the end of the period, 45 mergers are still under analysis.1
- The amount of authorized transactions is of 24,248.2 million pesos.
Amparo appeals
- In April, the Judicial Power resolved 8 amparo appeals: 3 were granted, 1 was denied, and 4 were dismissed.2 At the end of the period, 461 lawsuits are still in process, of which 389 correspond to economic competition matters.
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