July 2022
Frontpage
Anticompetitive Practices
Cofece initiates investigations about the possible realization of absolute monopolistic practices
Related to the acquisition of electoral material and documentation;
as well as to the provision of maritime transport services for passengers and goods in Quintana Roo
Recommended reading
FRONTPAGE
Cofece warns of risks to competition in the market of natural gas derived from the strategy established by the Ministry of Energy
Cofece warns of risks to competition in the market of natural gas derived from the strategy established by the Ministry of Energy
The Federal Economic Competition Commission (Cofece) warned, through an opinion, of risks to competition and free market access derived from the Supply guarantee strategy for the optimization of capacity in the Integrated National Transport and Storage System of Natural Gas (Strategy), established by the Ministry of Energy.
In the official letter SENER.100/195/2022, it is established that users or those interested in receiving the service of natural gas transport at the points of entry of the Integrated National Natural Transport and Storage System of Natural Gas (Sistrangas), must prove that they receive the supply from Petróleos Mexicanos (Pemex, per its acronym in Spanish), the Federal Electricity Commission (CFE, per its initials in Spanish), or their affiliates or subsidiaries; and that the provision of the services is ensured through the contracting of transport capacity in pipelines with any of these State-owned companies.
In this regard, the Cenagas sent the official letter CENAGAS-UGTP/00434/2022 to the users of natural gas transport, in which it indicates that those who have a service contract, will have the obligation to submit documentary evidence that they meet the requirements established in the Strategy, no later than August 13, 2022
It is worth indicating that Cenagas is the entity responsible for the management, administration and operation, with independence of its users, of the infrastructure of Sistrangas, as well as of guaranteeing its non-unduly discriminatory open access.
If the Strategy is followed, the conditions of competition in the market of natural gas and in the market of electricity would be severely and irreparably affected considering that:
- It would prevent users (sellers and industrial users) who decide not to contract with the aforementioned State-owned companies, the access on equal conditions to the capacity of the Sistrangas, artificially benefiting Pemex and CFE. It is necessary to mention that this system’s capacity is limited and constitutes an indispensable facility to compete in the market of natural gas, given that this system controls the most important infrastructure for both the transport and import of natural gas.
- It would discourage the entry of potential sellers of natural gas and would nullify the capacity to compete for the current participants in this link. The foregoing, because the Strategy prevents contracting the most efficient provider and, instead, establishes a mandatory intermediation that substantially affects supply conditions.
- It would generate distortions for competitors of the Federal Electricity Commission in the market of the production of electric power, as those users that use natural gas to produce electricity and require the service of transport would be forced to acquire this facility through CFE, which in turn is their competitor. In this manner, CFE could have incentives to increase natural gas costs for its competitors.
ANTICOMPETITIVE PRACTICES
Cofece initiates investigation regarding the possible realization of absolute monopolistic practices related to the acquisition of electoral material and documentation
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 absolute monopolistic practices in the market of the public procurement procedures for the acquisition of electoral material and documentation in the national territory.
The investigation covers the procedures for the acquisition of electoral material and documentation by public authorities through tender procedures, at the three levels of government and in all the national territory. The acquired products considered are electoral ballots, indelible liquid, booths, desks, modular elements, manuals, labels and any other good acquired within the framework of an electoral procedure.
Absolute monopolistic practices are contracts, agreements, arrangements or combinations between competing economic agents, whose purpose or effect is the manipulation of prices, restriction or constraint of supply or demand, division or segmentation of markets, concertation or coordination of bids in tenders, as well as the exchange of information between them to carry out any of the above conducts.
This investigation, identified with the file number IO-003-2021, shall not be understood as a prejudgment on the responsibility of any economic agent, since so far no violations to the regulation on matters of economic competition have been identified, nor the subject(s) who, if applicable, would be considered as probable responsible at the end of this 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 absolute monopolistic practices in the market of the public procurement procedures for the acquisition of electoral material and documentation in the national territory.
The investigation covers the procedures for the acquisition of electoral material and documentation by public authorities through tender procedures, at the three levels of government and in all the national territory. The acquired products considered are electoral ballots, indelible liquid, booths, desks, modular elements, manuals, labels and any other good acquired within the framework of an electoral procedure.
Absolute monopolistic practices are contracts, agreements, arrangements or combinations between competing economic agents, whose purpose or effect is the manipulation of prices, restriction or constraint of supply or demand, division or segmentation of markets, concertation or coordination of bids in tenders, as well as the exchange of information between them to carry out any of the above conducts.
This investigation, identified with the file number IO-003-2021, shall not be understood as a prejudgment on the responsibility of any economic agent, since so far no violations to the regulation on matters of economic competition have been identified, nor the subject(s) who, if applicable, would be considered as probable responsible at the end of this investigation.
The Investigative Authority began an inquiry into possible absolute monopolistic practices related to the maritime transport services for passengers and goods in Quintana Roo
La Autoridad Investigadora de la Cofece publicó en su portal de internet y en el Diario Oficial de la Federación, el aviso de inicio de una investigación de oficio, por la posible realización de prácticas monopólicas absolutas en el mercado de servicios de transporte marítimo en el estado de Quintana Roo.
La indagatoria incluye los servicios de transporte marítimo de pasajeros y mercancías en dicha entidad federativa, actividades que son de suma importancia tanto para los habitantes y trabajadores de la zona, como para los turistas, pues permite la movilidad de personas y mercancías entre el estado y sus zonas insulares. En 2021, esta forma de transporte atendió a más de 9 millones de pasajeros en los transbordadores que dan servicio en esa entidad (Isla Mujeres, Playa del Carmen, Cozumel y Chetumal), y se movilizaron más de 1 millón y medio de toneladas de carga general en los Puertos de Quintana Roo (Punta Sam, Isla Mujeres, Puerto Morelos, Cozumel y Punta Venado).
Es importante mencionar que, de acuerdo con el Plan Estratégico 2022-2025 de la Cofece, las actividades de transporte y logística son prioritarias por la incidencia directa que tienen en el desarrollo regional y el bienestar de los consumidores.
De acuerdo con el Artículo 53 de la Ley Federal de Competencia Económica (LFCE o Ley), las prácticas monopólicas absolutas son posibles arreglos o combinaciones entre agentes económicos competidores entre sí, cuyo objeto o efecto sea la manipulación de precios, restricción o limitación de la oferta o la demanda, segmentación de mercado, así como el intercambio de información entre ellos para realizar alguna de las conductas anteriores. Esta investigación de oficio, identificada con el número de expediente IO-004-2021, no debe entenderse como un prejuzgamiento, sino como una actuación de la autoridad para verificar el cumplimiento de la LFCE.
The Investigative Authority of Cofece published on its website and in the Federal Official Gazette, the notice of the initiation of an ex officio investigation, for possible absolute monopolistic practices in the market of maritime transport services in the state of Quintana Roo.
The inquiry includes the maritime transport services of goods and passengers in said federal entity, activities that are of the utmost importance both for the inhabitants and workers in the area, as well as for tourists, since it allows the mobility of persons and goods between the state and its insular zones. In 2021, this form of transport served more than 9 million passengers on ferries that provide service in this entity (Isla Mujeres, Playa del Carmen, Cozumel and Chetumal), and more than 1 and a half million tons of general cargo were mobilized in the Ports of Quintana Roo (Punta Sam, Isla Mujeres, Puerto Morelos, Cozumel and Punta Venado).
It is important to mention that, in accordance with the Commission’s 2022-2025 Strategic Plan, the activities of transport and logistics are priorities due to the direct impact they have on regional development and the welfare of consumers.
In accordance with Article 53 of the Federal Economic Competition law (LFCE, per its initials in Spanish, or Law), absolute monopolistic practices are possible arrangements or combinations between competing economic agents, whose purpose or effect is the manipulation of prices, restriction or constraint of supply or demand, segmentation of markets, as well as the exchange of information between them to carry out any of the above conducts. This ex officio investigation, identified with the file number IO-004-2021, shall not be understood as a prejudgment, but as an action by the authority to verify compliance with the LFCE.
RECOMMENDED READING
Cofece en números 2021 [Cofece by the numbers 2021]
Economic competition encourages markets function to the benefit of Mexican families, because when companies compete, they offer a greater number of goods and services that best meet the needs of consumers.
For the fourth consecutive year, the document Cofece en números 2021 [Cofece by the numbers 2021] is published, as a part of a proactive accountability effort in which the most relevant actions carried out last year are explained. The objective is that the benefits of the Commission’s work in Competition Law Enforcement, competition advocacy and institutional development are known.
BY THE NUMBERS
BY THE NUMBERS
In July, the Commission handled 108 matters, of which 60 correspond to concentrations, 31 to procedures for monopolistic practices and concentrations, 5 special procedures and 12 opinions on tenders, concessions or permits.
Complaints, investigations and trial-like procedures
- Follow-up was made to 8 complaints for anticompetitive conducts, 7 remain under analysis.
- 19 investigations for monopolistic practices were followed-up; all are ongoing.
- Progress is being made in 4 trial-like procedures, that are still being processed.
- 4 procedures for barriers to competition are being analyzed; they are still being processed.
- 1 procedure to resolve on competition conditions is still being processed.
Concentraciones
- 60 concentrations were reviewed, of which 15 were authorized1.
- The amount of the authorized operations is of $77,781.8 million Mexican pesos.
Amparo trial
- During July, the Judicial Power resolved 3 amparo trials: all were granted. At the end of the period, 422 trials are still in trial, of which 327 correspond to economic competition matters.
Competition problems in insurance of medical expenses affect consumers: Cofece