February 2024
Frontpage
Anticompetitive conducts
Concentrations
Opinions
Regulatory framework
Recommended reading
FRONTPAGE
Cofece will seek to contribute to the discussion on the proposed constitutional reform regarding competition policy
Cofece will seek to contribute to the discussion on the proposed constitutional reform regarding competition policy
The existence of an autonomous competition authority allows to expand the impact of competition policy for the benefit of society, generating necessary conditions so it exercises greater faculties and eliminates monopolistic practices in our country, in accordance with its constitutional mandate. In addition, it is necessary to strengthen the competition authority so it has greater impact and greater deterrence of anticompetitive conducts through the imposition of higher sanctions or the use of powers that allow to eliminate obstacles that favor some competitors over others without any reason or justification.
It corresponds to the Congress of the Union to open the dialogue to the plurality of voices. At Cofece, we welcome the debate, we will be respectful of the legislative process, and we will seek to participate in order to contribute to this public dialogue and to strengthen a competition policy that puts improving the quality of life of the population above all else.
ANTICOMPETITIVE CONDUCTS
Cofece identifies possible barriers to competition in retail e-commerce
The Investigative Authority (IA) of the Commission, as a result of an investigation into the retail e-commerce market in the national territory, preliminary determined the non-existence of effective competition conditions in the retail e-commerce market (marketplaces) in Mexico, affecting both sellers and buyers. The IA determined that there are three possible barriers to competition that could be affecting the functioning of this market: artificiality in some components of the loyalty programs, lack of transparency in the functioning of the management of offers and preferences for own logistic solutions.
The Investigative Authority (IA) of the Commission, as a result of an investigation into the retail e-commerce market in the national territory, preliminary determined the non-existence of effective competition conditions in the retail e-commerce market (marketplaces) in Mexico, affecting both sellers and buyers. The IA determined that there are three possible barriers to competition that could be affecting the functioning of this market: artificiality in some components of the loyalty programs, lack of transparency in the functioning of the management of offers and preferences for own logistic solutions.
Cofece determines the lack of effective competition conditions in the maritime transport of passengers and roll-on/roll-of cargo in Baja California Sur
The Board of Commissioners of Cofece determined the lack of effective competition conditions in the maritime transport services of passengers and maritime transport of roll-on/roll-off cargo in cabotage navigation on the routes Pichilingue -Mazatlán and Pichilingue – Topolobampo. Following this resolution, it corresponds to the regulatory authority, the Ministry of the Navy, if it deems pertinent, to issue the tariff regulation for these services.
The Board of Commissioners of Cofece determined the lack of effective competition conditions in the maritime transport services of passengers and maritime transport of roll-on/roll-off cargo in cabotage navigation on the routes Pichilingue -Mazatlán and Pichilingue – Topolobampo. Following this resolution, it corresponds to the regulatory authority, the Ministry of the Navy, if it deems pertinent, to issue the tariff regulation for these services.
Cofece notifies a statement of probable responsibility for possible collusion in the maritime transport services market in Quintana Roo
The Commission notified a statement of probable responsibility to companies and individuals after finding evidence of possible collusion to segment the market of maritime transport services in the state. The notification of this statement marks the beginning of the trial-like procedure, in which those alleged responsible may manifest what is within their right, and once the proceeding is finished, the Board of Commissioners of Cofece will resolve in accordance with the law. If it’s proven that an absolute monopolistic practice was carried out, sanctions may be imposed on the parties under the applicable LFCE.
The Commission notified a statement of probable responsibility to companies and individuals after finding evidence of possible collusion to segment the market of maritime transport services in the state. The notification of this statement marks the beginning of the trial-like procedure, in which those alleged responsible may manifest what is within their right, and once the proceeding is finished, the Board of Commissioners of Cofece will resolve in accordance with the law. If it’s proven that an absolute monopolistic practice was carried out, sanctions may be imposed on the parties under the applicable LFCE.
CONCENTRATIONS
The Board of Commissioners of Cofece subjects the acquisition of electric power generation plants to the fulfillment of conditions
Cofece conditioned the clearance of the operation notified by Mexico Infrastructure Partners FF, S.A.P.I. de C.V., and the National Infrastructure Fund (FONADIN, per its acronym in Spanish) to acquire 13 electric power generation plants from Iberdrola Generación México, S.A. de C.V and its subsidiaries. Buyers must expressly and unconditionally accept the conditions established by the Board of Commissioners of the Commission to be able to close the operation and, in case of non-compliance with the conditions once accepted, sanctions established in Article 127 of the Federal Economic Competition Law (LFCE per its initials in Spanish) may be imposed.
Cofece conditioned the clearance of the operation notified by Mexico Infrastructure Partners FF, S.A.P.I. de C.V., and the National Infrastructure Fund (FONADIN, per its acronym in Spanish) to acquire 13 electric power generation plants from Iberdrola Generación México, S.A. de C.V and its subsidiaries. Buyers must expressly and unconditionally accept the conditions established by the Board of Commissioners of the Commission to be able to close the operation and, in case of non-compliance with the conditions once accepted, sanctions established in Article 127 of the Federal Economic Competition Law (LFCE per its initials in Spanish) may be imposed.
OPINIONS
Opinion on the proposed Bylaw of the Law that establishes the Registration and Accreditation of Real Estate Service Providers in the State of Jalisco
The Commission issued an opinion on competition and free market access on the proposed Bylaw of the Law that establishes the Registration and Accreditation of Real Estate Service Providers in the State of Jalisco. Cofece recommended the State’s Ministry of Economic Development to take into account the potential risks to the process of economic competition and free market access that could arise from the implementation of this proposal, so that they meet their objectives without imposing restrictions to the process of free market access and competition.
The Commission issued an opinion on competition and free market access on the proposed Bylaw of the Law that establishes the Registration and Accreditation of Real Estate Service Providers in the State of Jalisco. Cofece recommended the State’s Ministry of Economic Development to take into account the potential risks to the process of economic competition and free market access that could arise from the implementation of this proposal, so that they meet their objectives without imposing restrictions to the process of free market access and competition.
REGULATORY FRAMEWORK
Cofece modifies the Regulatory Provisions of the Federal Economic Competition Law
Cofece published in the Federal Official Gazette (DOF) the modifications to the Regulatory Provisions of the Federal Economic Competition Law, which aim at strengthening and clarifying the regulatory framework related to the imposition and lifting of interim measures in the procedures processed. The modifications provide greater certainty to economic agents handling procedures before the Commission, protect the rights of all parties, and ensure that interim measures can be lifted through a guarantee.
Cofece published in the Federal Official Gazette (DOF) the modifications to the Regulatory Provisions of the Federal Economic Competition Law, which aim at strengthening and clarifying the regulatory framework related to the imposition and lifting of interim measures in the procedures processed. The modifications provide greater certainty to economic agents handling procedures before the Commission, protect the rights of all parties, and ensure that interim measures can be lifted through a guarantee.
RECOMMENDED READING
2023 Relevant Actions
Considering the economic and social context that our country is experiencing, in 2023 Cofece ratified and renewed its commitment to Mexican families, as well as to academia, private sector, and all levels of government, with the purpose of opening a new phase of competition policy that generates tangible benefits for all Mexicans.
In this sense, the most important actions carried out during this period are presented, which are proof of the Commission's commitment in this new stage, where competition policy is and will be a tool that has a favorable impact on the lives of Mexicans, thus avoiding the payment of overprices and facilitating the entry and permanence of small businesses in the markets.
BY THE NUMBERS
BY THE NUMBERS
In February, the Commission processed 101 matters, of which 49 were related to concentrations, 32 to procedures for monopolistic practices and unlawful concentrations, 5 to special procedures and 15 to opinions on bidding processes, concessions, or permits.
Complaints, investigations, and trial-like procedures
- 1 complaint for anticompetitive conducts was received, which were added to the 6 pending from the previous period. Of these, 1 was dismissed and 2 were deemed as not filed, at the end of the period 4 complaints remain under analysis.
- Follow-up was given to 15 investigations for monopolistic practices pending at the beginning of the period.
- 1 trial-like procedure was initiated for probable monopolistic practices in the maritime transport services market in the state of Quintana Roo.
- The initiated process was added to the 9 pending at the beginning of the period.
- Phase 1 of 1 procedure to determine the existence of essential facilities and barriers to entry in the retail e-commerce market in the national territory was initiated.
- Follow-up was given to 3 other procedures to determine the existence of essential facilities and barriers to entry,
- 1 resolution of lack of effective competition conditions in the maritime transport services market of passengers and roll-on/roll-off cargo in Baja California Sur was issued.
Concentrations
- 49 concentrations were analyzed, 11 of which were notified during the period. Of these, 10 were authorized and 1 was conditioned, thus, at the end of period, 38 mergers are still under analysis.1
- The amount of authorized transactions is $26,533.1 million Mexican pesos.
Amparo trials
- During February, the Judicial Power resolved 13 amparo trials, of which 2 were denied and 11 were dismissed.2 At the end of the period, 389 trials were still in process, of which 342 correspond to economic competition matters.
Acuerdo No. COFECE/177/2024 mediante el cual el Pleno de la Comisión Federal de Competencia Económica expide los Lineamientos del Sistema Institucional de Archivos de la Comisión Federal de Competencia Económica 