January 2023
Frontpage
Notifications of statements of probable responsibility
Competition advocacy
Defense before the judicial power
Recommended reading
FRONTPAGE
Cofece presents its 2023 Annual Work Program
Cofece presents its 2023 Annual Work Program
The Board of Commissioners of the Federal Economic Competition Commission (Cofece or Commission) approved the 2023 Annual Work Program (PAT, per its acronym in Spanish), which contains 14 strategic actions to be carried out throughout this year. Each of these actions will contribute to the gradual achievement of the objectives of the 2022-2025 Strategic Plan.
Since its creation, Cofece has been distinguished for being a technically sound institution, reliable in its performance and with a continuous improvement and adaptability approach to the challenges of its environment. For this reason, the Commission designed the Institutional Strategic Planning Model (MOPEI, per its acronym in Spanish) that allows it to prioritize its actions and guide its decision making, so that its intervention in the markets is effective, with an efficient and responsible use of the allocated resources. The 2023 PAT and its 14 actions are aligned with Cofece's strategic objectives as follows:
- Prevent and correct market structures that hinder, harm or impede competition and free market access::
- Conclude an investigation on essential facilities and barriers to competition, or resolutions on competition conditions.
- Elaborate a study about conditions of competition in a specific market.
- Publish the study on conditions of economic competition in the market for digital financial services.
- Fight and deter anticompetitive practices that affect markets:
- Conclude two investigations on absolute monopolistic practices.
- Conclude three investigations on relative monopolistic practices or unlawful concentrations.
- Finalize four trial-like procedures and those related to special procedures.
- Promote the application of competition principles between public and private actors through actively spreading the benefits of economic competition.
- Elaborate a document containing the results of ex-ante evaluations of the cases resolved by Cofece during 2022.
- Develop two seminars for journalists.
- Implement the 2023 social communication strategy.
- Organize one 2023 competition day.
- Implement the 2023 Summer internships program.
- Promote an award to advocate economic competition.
- Develop four internship programs with Latin American agencies.
- Consolidate a robust and vanguard institutional model that effectively responds to the institutional needs and challenges.
- Carry out an external budgetary and financial audit for the 2022 fiscal year
NOTIFICATIONS OF STATEMENTS OF PROBABLE RESPONSIBILITY
To several economic agents and natural persons for possible price manipulation in the retail sale of gasoline and diesel in national territory
Cofece notified a statement of probable responsibility to several economic agents and natural persons after finding evidence of a probable collusion to fix, raise, agree, or manipulate the sale price in the market for the retail of gasolines and diesel in service stations in the national territory.
The investigation processed under file number DE-009-2019, concluded on August 25, 2022. In this regard, the Investigative Authority indicated in its statement of probable responsibility that it had knowledge of facts that possibly derived in the realization of absolute monopolistic practices (PMA, per its initials in Spanish) provided for in article 53, section I of the Federal Economic Competition Law (LFCE, per its initials in Spanish).
The notification of a statement of probable responsibility initiates the trial-like procedure, conducted by the Commission’s Technical Secretariat, in which those probable responsible may argue in their favor, offer evidence related to the alleged accusations made against them and present arguments. Once the procedure has been processed, the Board of Commissioners of Cofece will resolve in accordance with the law
Cofece notified a statement of probable responsibility to several economic agents and natural persons after finding evidence of a probable collusion to fix, raise, agree, or manipulate the sale price in the market for the retail of gasolines and diesel in service stations in the national territory.
The investigation processed under file number DE-009-2019, concluded on August 25, 2022. In this regard, the Investigative Authority indicated in its statement of probable responsibility that it had knowledge of facts that possibly derived in the realization of absolute monopolistic practices (PMA, per its initials in Spanish) provided for in article 53, section I of the Federal Economic Competition Law (LFCE, per its initials in Spanish).
The notification of a statement of probable responsibility initiates the trial-like procedure, conducted by the Commission’s Technical Secretariat, in which those probable responsible may argue in their favor, offer evidence related to the alleged accusations made against them and present arguments. Once the procedure has been processed, the Board of Commissioners of Cofece will resolve in accordance with the law
To several economic agents and natural persons for possible price manipulation in the retail sale of marine diesel
Cofece notified a statement of probable responsibility to several economic agents and natural persons after finding evidence of a probable collusion to fix, raise, agree, or manipulate the sale price in the market for the retail of marine diesel in service stations in national territory.
The investigation of this matter, processed under file number DE-029-2019, concluded on October 27, 2022, and in its statement of probable responsibility, the Investigative Authority indicated that it had knowledge of facts that possibly derived in the realization of PMAs provided for in article 53, section I, of the LFCE.
The notification of a statement of probable responsibility initiates the trial-like procedure, conducted by the Commission’s Technical Secretariat, in which those probable responsible may argue in their favor, offer evidence related to the alleged accusations made against them and present arguments. Once the procedure has been processed, the Board of Commissioners of Cofece will resolve in accordance with the law.
Cofece notified a statement of probable responsibility to several economic agents and natural persons after finding evidence of a probable collusion to fix, raise, agree, or manipulate the sale price in the market for the retail of marine diesel in service stations in national territory.
The investigation of this matter, processed under file number DE-029-2019, concluded on October 27, 2022, and in its statement of probable responsibility, the Investigative Authority indicated that it had knowledge of facts that possibly derived in the realization of PMAs provided for in article 53, section I, of the LFCE.
The notification of a statement of probable responsibility initiates the trial-like procedure, conducted by the Commission’s Technical Secretariat, in which those probable responsible may argue in their favor, offer evidence related to the alleged accusations made against them and present arguments. Once the procedure has been processed, the Board of Commissioners of Cofece will resolve in accordance with the law.
COMPETITION ADVOCACY
Cofece promotes the generation of talent in economic competition in MootComp 2022
With the aim of promoting the practical analysis of hypothetical cases related to the attributions of the authorities responsible for protecting the process of competition and free market access, and thus generating professional talent in the field of economic competition, Cofece hosted the final rounds and closing ceremony of the sixth edition of MootComp. On this occasion, law and economics students from 30 universities in Mexico, Chile, Colombia and Peru participated in the contest, resolving a fictitious case of monopolistic practices in the textile sector in writing and through oral hearings in front of prominent professionals and scholars.
This international exercise was carried out as a joint effort of various Latin American institutions to provide future lawyers and economists with a unique experience in their professional life. In the event, the Acting Chair due to a vacancy of Cofece, Brenda Hernández Ramírez; Elisa Mariscal, managing director of Games Economics; Francisco Bórquez, partner of Barros & Errázuriz Abogados, and Ernesto Leyva Pedrosa, assistant legal director of América Móvil, acted as judges.
The winning students of the 2022 MootComp received an intensive seminar on economic competition taught by a renowned academic institution in Mexico; in addition to postgraduate studies scholarships at different universities in Latin America and internships at some of the best law firms in the region, the foregoing, with the objective of fostering their studies and professional careers in the matter of economic competition.
With the aim of promoting the practical analysis of hypothetical cases related to the attributions of the authorities responsible for protecting the process of competition and free market access, and thus generating professional talent in the field of economic competition, Cofece hosted the final rounds and closing ceremony of the sixth edition of MootComp. On this occasion, law and economics students from 30 universities in Mexico, Chile, Colombia and Peru participated in the contest, resolving a fictitious case of monopolistic practices in the textile sector in writing and through oral hearings in front of prominent professionals and scholars.
This international exercise was carried out as a joint effort of various Latin American institutions to provide future lawyers and economists with a unique experience in their professional life. In the event, the Acting Chair due to a vacancy of Cofece, Brenda Hernández Ramírez; Elisa Mariscal, managing director of Games Economics; Francisco Bórquez, partner of Barros & Errázuriz Abogados, and Ernesto Leyva Pedrosa, assistant legal director of América Móvil, acted as judges.
The winning students of the 2022 MootComp received an intensive seminar on economic competition taught by a renowned academic institution in Mexico; in addition to postgraduate studies scholarships at different universities in Latin America and internships at some of the best law firms in the region, the foregoing, with the objective of fostering their studies and professional careers in the matter of economic competition.
DEFENSE BEFORE THE JUDICIAL POWER
The Judicial Power denies an amparo to a natural person who challenged a determination by the Board of Commissioners of Cofece in file number IO-003-2015
The First Collegiate Circuit Tribunal on Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic (First Tribunal), upheld the denial of the amparo filed by a natural person against the resolution issued by the Board of Commissioners of Cofece within the file number IO-003-2015, by which various economic agents and natural persons were fined for conducting PMA in the market for retirement fund management services (Afores).
In 2015, Cofece initiated an investigation for the probable realization of PMA in the market for the provision of Afores services in national territory. Once the proceeding was concluded, the Board of Commissioners issued a resolution in which it proved the responsibility and sanctioned various economic agents and natural persons who acted on their behalf, for the commission of the PMA provided for in Article 9, Section III of the LFCE.
One of the sanctioned natural persons filed an amparo trial against such resolution. The amparo proceeding was heard by the First Tribunal, which determined:
- To dismiss the amparo proceeding, on the one hand;
- Deny on the other hand, considering that the monopolistic practice was proven and that there was sufficient evidence to prove that the plaintiff had full knowledge of the collusive agreements and agreed to their final part; and,
- Granting the amparo so that, among other things, a fine be imposed on the plaintiff for the amount resulting from the quantification of the harm to the market, only considering the time in which this person participated in the PMA.
Such determination was confirmed by the First Court, and therefore, in compliance, the Board of Commissioners of Cofece issued a new resolution in which it reiterated everything that was not subject of the amparo and made the adjustment indicated by the Judicial Power of the Federation.
The natural person promoted another amparo trial against this new resolution, which was heard by the First Court, which issued a ruling in the sense of denying the amparo to the plaintiff, considering that the calculation of the harm caused to the market had been justified, in accordance with the participation of the plaintiff; this determination was confirmed by the First Collegiate Court, and therefore the accreditation of the PMA and the fine imposed to the plaintiff remained final.
The First Collegiate Circuit Tribunal on Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic (First Tribunal), upheld the denial of the amparo filed by a natural person against the resolution issued by the Board of Commissioners of Cofece within the file number IO-003-2015, by which various economic agents and natural persons were fined for conducting PMA in the market for retirement fund management services (Afores).
In 2015, Cofece initiated an investigation for the probable realization of PMA in the market for the provision of Afores services in national territory. Once the proceeding was concluded, the Board of Commissioners issued a resolution in which it proved the responsibility and sanctioned various economic agents and natural persons who acted on their behalf, for the commission of the PMA provided for in Article 9, Section III of the LFCE.
One of the sanctioned natural persons filed an amparo trial against such resolution. The amparo proceeding was heard by the First Tribunal, which determined:
- To dismiss the amparo proceeding, on the one hand;
- Deny on the other hand, considering that the monopolistic practice was proven and that there was sufficient evidence to prove that the plaintiff had full knowledge of the collusive agreements and agreed to their final part; and,
- Granting the amparo so that, among other things, a fine be imposed on the plaintiff for the amount resulting from the quantification of the harm to the market, only considering the time in which this person participated in the PMA.
Such determination was confirmed by the First Court, and therefore, in compliance, the Board of Commissioners of Cofece issued a new resolution in which it reiterated everything that was not subject of the amparo and made the adjustment indicated by the Judicial Power of the Federation.
The natural person promoted another amparo trial against this new resolution, which was heard by the First Court, which issued a ruling in the sense of denying the amparo to the plaintiff, considering that the calculation of the harm caused to the market had been justified, in accordance with the participation of the plaintiff; this determination was confirmed by the First Collegiate Court, and therefore the accreditation of the PMA and the fine imposed to the plaintiff remained final.
RECOMMENDED READING
Fourth Quarterly Report 2022. Learn about the Commission’s main activities between October and December
In a context of economic recovery, it is essential to promote better competition conditions in the markets with the purpose of increasing the welfare of Mexican families. The activities carried out by Cofece between October and December 2022 contribute to this end and are made known to the public in this last accountability exercise of the year.
2022 was a year of hard work for Cofece, which resulted into important resolutions for the benefit of consumers. The Commission is convinced that bringing welfare to more Mexican households through market efficiency is a task that requires robust actions on a permanent basis. Under such consideration, this competition authority concludes the reporting exercise and prepares for a year that will bring new challenges.
By The Numbers
By The Numbers
In January, the Commission handled 114 matters, of which 64 correspond to concentrations, 31 to procedures for monopolistic practices and prohibited concentrations, 6 to special procedures and 13 to opinions on tenders, concessions or permits.
Complaints, investigations, and trial-like procedures
- 1 complaint for anticompetitive conducts was received, which was added to the 5 pending from the prior period. From these, 3 were discharged and 1 derived into the initiation of an investigation, therefore at the end of the period 2 complaints remain under analysis.
- Follow-up was made on 20 investigations for monopolistic practices, 1 of which initiated in the period, derived from a complaint.
- 5 trial-like procedures were followed up, of which 2 were initiated in the period in the markets of marine diesel and service stations in the national territory.
- 5 procedures for barriers to competition are still in progress.
- 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
- 64 concentrations were reviewed, of which 9 were authorized and 6 closed, so at the end of the period 49 remain under analysis.1
- The amount of the authorized operations is of $849,805.2 million Mexican pesos.
Amparo trials
- During January, the Judicial Power resolved 8 amparo trials: 4 were granted and 4 were dismissed.2 At the end of the period, 477 amparos were still in process, of which 399 correspond to economic competition matters.
