April 2024
Frontpage
Anticompetitive conducts
Mergers
Recommended reading
FRONTPAGE
Cofece files a complaint before the Office of the Federal Attorney against individuals who allegedly manipulated prices in the sale of building coating products
Cofece files a complaint before the Office of the Federal Attorney against individuals who allegedly manipulated prices in the sale of building coating products
As part of the new phase of the economic competition policy, the Investigative Authority (IA) of the Federal Economic Competition Commission (Cofece or Commission) filed a complaint before the Attorney General's Office (FGR, per its initials in Spanish), after five years without using this power, against several individuals who allegedly colluded to illegally manipulate the sale price of building coating products used in the construction sector.
According to the Federal Economic Competition Law and the Federal Criminal Code, the IA may file complaints before the FGR regarding probable criminal conduct related to economic competition and free market access, so that that those allegedly involved may be sanctioned with imprisonment between five and ten years.
ANTICOMPETITIVE CONDUCTS
Cofece finds evidence of possible illegal agreements between suppliers of federal freight transportation
The Investigative Authority found evidence pointing to the fact that federal freight transportation providers may have colluded to avoid competing among themselves to the detriment of consumers, the reason for which an ex officio investigation was initiated to determine whether this type of illegal agreements had occurred.
As one of the cornerstones of the new competition policy, the Commission has paid special attention to markets that affect the costs of supply chains, since illegal conducts in these sectors results in Mexican families being restricted in their purchasing possibilities.
The Investigative Authority found evidence pointing to the fact that federal freight transportation providers may have colluded to avoid competing among themselves to the detriment of consumers, the reason for which an ex officio investigation was initiated to determine whether this type of illegal agreements had occurred.
As one of the cornerstones of the new competition policy, the Commission has paid special attention to markets that affect the costs of supply chains, since illegal conducts in these sectors results in Mexican families being restricted in their purchasing possibilities.
MERGERS
Cofece fines a company and two individuals for closing an operation in terms other than those previously authorized
The Board of Commissioners of Cofece fined Gebr. Knauf KG with 1 million 545 thousand pesos, a company that manufactures construction materials and plaster panels, as well as two individuals for carrying out a merger in terms different from those originally approved by Cofece by incorporating a non-compete clause that was not originally outlined in its request for authorization.
As part of the new phase of the economic competition policy, the Commission uses all its powers and urges economic agents to comply with each one of the obligations established in the regulations for the benefit of consumers.
The Board of Commissioners of Cofece fined Gebr. Knauf KG with 1 million 545 thousand pesos, a company that manufactures construction materials and plaster panels, as well as two individuals for carrying out a merger in terms different from those originally approved by Cofece by incorporating a non-compete clause that was not originally outlined in its request for authorization.
As part of the new phase of the economic competition policy, the Commission uses all its powers and urges economic agents to comply with each one of the obligations established in the regulations for the benefit of consumers.
RECOMMENDED READING
First Quarterly Report 2024
The first quarterly reports on Cofece's activities from January 1 to March 31 and is a sample of the strategies carried out to favor the welfare of Mexican households.
Chapter 1 details the actions to prevent and correct market structures that hinder, damage, or impede competition and free market access.
Chapter 2 covers the Commission's actions to combat and deter anticompetitive practices that affect markets. Chapter 3 reports on the activities carried out to promote the application of competition principles and their benefits among public and private actors.
Chapter 4 reports on actions aimed at consolidating Cofece's organizational model. Finally, Chapter 5 reports on the publication of the Commission's Annual Work Program (PAT, per its initials in Spanish) 2024, which contains 18 strategic actions contributing to the institutional objectives
BY THE NUMBERS
BY THE NUMBERS
In April, the Commission processed 116 matters, of which 65 were related to concentrations, 30 to procedures for monopolistic practices and unlawful concentrations, 5 to special procedures, and 16 to opinions on bidding processes, concessions, or permits.
Complaints, investigations, and trial-like procedures
- 5 complaints for anticompetitive conducts were analyzed: 2 received and 3 pending from the previous period. 1 of these complaints was deemed as not filed, therefore at the end of the period 4 complaints remain under analysis.
- Follow-up was given to 15 investigations and 10 procedures for monopolistic practices and unlawful concentrations, all pending at the beginning of the period.
- Follow up was given to 3 procedures at the investigation stage and 1 in Stage II to determine the existence of essential facilities and barriers to entry.
Mergers
- 65 mergers were analyzed, of which 18 were notified during the period and 47 during previous months. Of these transactions, 11 were authorized and 54 are still under analysis.1
- The amount of authorized transactions is $37,805.8 million Mexican pesos.
Amparo trials
- During April, the Judicial Power resolved 18 amparo trials, of which 6 were granted, 4 were denied and 8 were dismissed.2 At the end of the period, 390 trials were still in process, of which 347 correspond to economic competition matters.
1. The files of the authorized concentrations are: CNT-133-2023, CNT-137-2023 (Weg Holding, B.V. / Weg Electric Corp. / Rotor Beheer B.V.), CNT-140-2023 (Taenza, S.A. de C.V. / Nazago, S.A. de C.V. / Bway Corporation), CNT-006-2024, CNT-007-2024 (Rheinmentall Automotive AG / Comitans Capital AG), CNT-011-2024, CNT-015-2024 (Patrimonio Zona Bajio, S.A. de C.V. / Inmobiliaria Zona Mx, S.A. de C.V. / Inmobiliaria Zona Cero, S.A. de C.V. / Fibra Shop / CIBanco, S.A., Institución de Banca Múltiple), CNT-016-2024 (Grupo Real Turismo, S.A. de C.V. / Corporativo DSC-FPNM, S.A.P.I. de C.V.), CNT-023-2024 (Holding Universidad Centro, S.A.P.I. de C.V. / Galileo Global Education Operations, S.A.S. / Galileo Global Education España, S.L.U.), CNT-033-2024, CNT-036-2024 (Roadis Concesiones México, S.A. de C.V. / Roadis Actopan de Infraestructuras, S.A. de C.V. / Fondo Nacional de Infraestructura / Concesionaria Autopista Perote-Xalapa, S.A. de C.V. / Banco Nacional de Obras y Servicios Públicos, Sociedad Nacional de Crédito, Institución de Banca de Desarrollo.
2. Of which it is reported that the jurisdictional body that finally resolved and the file number of the Amparo trials dismissed are: Second Collegiate Circuit Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 313/2023; First Collegiate Circuit Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications with residence in Mexico City and jurisdiction throughout the Republic, R. A. 89/2023; First Collegiate Circuit Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 35/2023; First Collegiate Circuit Court Specialized in Economic Competition, Broadcasting and Telecommunications with residence in Mexico City and jurisdiction throughout the Republic, Exp. 14/2024; First Collegiate Circuit Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R. A. 269/2023; First Collegiate Circuit Court in Administrative Matters Specialized in Antitrust, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the republic, R.A. 193/2022; First Collegiate Circuit Court of the Auxiliary Center of the First Region, R.A. 1340/2022, and First District Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the republic, Exp. 6728/2021; of the denied Amparo Trials are: Second Collegiate Court in Administrative Matters of the First Circuit, R.A. 63/2023; First District Court in Administrative Matters, Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, Exp. 17/2022; First District Court in Administrative Matters, Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, Exp. 253/2022, and First District Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, Exp. 314/2022, and of the granted Amparo trial are: First Collegiate Circuit Court of the Auxiliary Center of the First Region, R.A. 1396/2021; First Collegiate Circuit Court of the Auxiliary Center of the First Region, R.A. 635/2022; First Collegiate Circuit Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications with residence in Mexico City and jurisdiction throughout the Republic, R.A. 223/2022; First Collegiate Circuit Court of the Auxiliary Center of the First Region, R. A. 762/2022; Second Collegiate Circuit Court on Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 148/2022, and First Collegiate Circuit Court on Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 700/2022.
