June 2023
Frontpage
Anti-competitive conducts
Competition advocacy
Recommended reading
FRONTPAGE
30 years of the Federal Economic Competition Law
30 years of the Federal Economic Competition Law
Since its entry into force thirty years ago, the Federal Economic Competition Law (LFCE) established the bases to promote, protect and guarantee free market access and economic competition, as well as to prevent, investigate, fight, sanction, and eliminate monopolistic practices and unlawful concentrations. The LFCE is the instrument enforced by Cofece that allows it to guarantee a level playing field for all companies, regardless of their size or sector.
As a result of the powers granted to the Commission, over these thirty years, more than 6,000 matters related to the enforcement of the Law have been analyzed, such as merger reviews, investigations for monopolistic practices, competition studies, opinions on regulatory frameworks, and advocacy documents that today are a reference for the application of competition policy.
ANTI-COMPETITIVE CONDUCTS
Cofece investigates the existence of illegal agreements between distributors and/or exhibitors of films in movie theaters
The Investigative Authority of the Federal Economic Competition Commission (Cofece or Commission) initiated an ex officio investigation to determine whether illegal agreements were conducted between distributors and/or exhibitors of films in movie theaters in the national territory.
Surveillance in this market is relevant because, for families, going to the movies is one of the primary sources of entertainment. The National Chamber of the Film Industry documented that 182 million movie tickets were sold in 2022.
The Investigative Authority of the Federal Economic Competition Commission (Cofece or Commission) initiated an ex officio investigation to determine whether illegal agreements were conducted between distributors and/or exhibitors of films in movie theaters in the national territory.
Surveillance in this market is relevant because, for families, going to the movies is one of the primary sources of entertainment. The National Chamber of the Film Industry documented that 182 million movie tickets were sold in 2022.
Cofece preliminarily determines the lack of effective competition in the maritime transport of passengers and roll-on/roll-of cargo in Baja California Sur
The Investigative Authority (IA) of the Federal Economic Competition Commission (Cofece or Commission) preliminarily determined that there are no effective competition conditions in the maritime transport of passengers and roll-on/roll-of cargo, by ferry on routes between Baja California Sur and Sinaloa. Very high levels of concentration were identified in these services, as there are only two suppliers and there are barriers to entry.
The Investigative Authority (IA) of the Federal Economic Competition Commission (Cofece or Commission) preliminarily determined that there are no effective competition conditions in the maritime transport of passengers and roll-on/roll-of cargo, by ferry on routes between Baja California Sur and Sinaloa. Very high levels of concentration were identified in these services, as there are only two suppliers and there are barriers to entry.
Cofece sanctions various persons and economic agents for more than 2 million pesos and disqualifies natural persons for manipulating the price of tortillas and limiting their sale in Huixtla, Chiapas
For manipulating the price of tortillas and limiting their sale, the Federal Economic Competition Commission (Cofece or Commission) sanctioned Chedraui and Soriana, in addition to fining and disqualifying two natural persons who acted on their behalf; also, it sanctioned five dough and tortilla manufacturers and a Delegate of the Government of Huixtla who acted as coadjutant.
For manipulating the price of tortillas and limiting their sale, the Federal Economic Competition Commission (Cofece or Commission) sanctioned Chedraui and Soriana, in addition to fining and disqualifying two natural persons who acted on their behalf; also, it sanctioned five dough and tortilla manufacturers and a Delegate of the Government of Huixtla who acted as coadjutant.
Cofece notifies a statement of probable responsibility to companies and natural persons for possible illegal agreements in the market of the waterproofing products
The Federal Economic Competition Commission (Cofece or Commission) notified the statement of probable responsibility to various companies and natural persons after finding evidence of probable collusion to manipulate the sale price in the market for the production, distribution, and commercialization of waterproofing products in the national territory.
Waterproofing products protect buildings from water damage. According to the 2020 National Housing Survey (ENVI, by its initials in Spanish), 44.2 % of the houses presented humidity due to water filtration and this turned out to be the main structural problem of houses in Mexico.
The Federal Economic Competition Commission (Cofece or Commission) notified the statement of probable responsibility to various companies and natural persons after finding evidence of probable collusion to manipulate the sale price in the market for the production, distribution, and commercialization of waterproofing products in the national territory.
Waterproofing products protect buildings from water damage. According to the 2020 National Housing Survey (ENVI, by its initials in Spanish), 44.2 % of the houses presented humidity due to water filtration and this turned out to be the main structural problem of houses in Mexico.
COMPETITION ADVOCACY
Competition authorities of Spain and Mexico agree to strengthen cooperation ties
The Chair Commissioner of the Federal Economic Competition Commission (Cofece or Commission), Andrea Marván Saltiel, and the President of the National Commission of Markets and Competition of the Kingdom of Spain (CNMC), Cani Fernández Vicién, signed a Memorandum of Understanding with the objective of promoting and strengthening a framework of voluntary cooperation, based on principles of equality and mutual benefit in the field of enforcement of competition laws in their respective jurisdictions.
The Chair Commissioner of the Federal Economic Competition Commission (Cofece or Commission), Andrea Marván Saltiel, and the President of the National Commission of Markets and Competition of the Kingdom of Spain (CNMC), Cani Fernández Vicién, signed a Memorandum of Understanding with the objective of promoting and strengthening a framework of voluntary cooperation, based on principles of equality and mutual benefit in the field of enforcement of competition laws in their respective jurisdictions.
Cofece signs a coordination agreement with the Government of the State of Jalisco to promote economic competition
The Federal Economic Competition Commission (Cofece or Commission) and the Government of the State of Jalisco signed a coordination agreement with the purpose of undertaking actions aimed at promoting and strengthening economic competition and free market access for the benefit of consumers in terms of lower prices, better goods and services, as well as a wider range of purchasing alternatives.
Through this coordination work that promotes competition, businessmen and entrepreneurs will also benefit, by creating greater access and better market conditions; and in general, as well as the general economy of this federal entity.
The Federal Economic Competition Commission (Cofece or Commission) and the Government of the State of Jalisco signed a coordination agreement with the purpose of undertaking actions aimed at promoting and strengthening economic competition and free market access for the benefit of consumers in terms of lower prices, better goods and services, as well as a wider range of purchasing alternatives.
Through this coordination work that promotes competition, businessmen and entrepreneurs will also benefit, by creating greater access and better market conditions; and in general, as well as the general economy of this federal entity.
RECOMMENDED READING
Beneficio Económico de las intervenciones de la Cofece 2022 [Economic Benefit of Cofece’s 2022 interventions]
Following international best practices, the Commission conducts evaluations that measure the economic impact of its interventions. This document compiles three assessments of cases concluded in 2022: the sanction of relative monopolistic practices (PMR) in the ground passenger transportation market with origin and destination at the Mexico City International Airport (AICM), and two sanctions for absolute monopolistic practices (PMA) in the land passenger transportation market and the distribution and commercialization of Liquefied Petroleum Gas (LPG) in the national territory. The benefit generated by these interventions is estimated at 3 thousand 28 million 547 thousand 224 pesos.
BY THE NUMBERS
BY THE NUMBERS
In June, the Commission handled with 88 matters, of which 38 correspond to concentrations, 30 to procedures for monopolistic practices and unlawful concentrations, 7 to special procedures and 13 to opinions on bidding processes, concessions or permits.
Complaints, investigations, and trial-like proceedings
- 5 complaints for anticompetitive conducts were received, which were added to 1 pending from the previous period. Of these, 1 was dismissed; so that at the end of the period, 5 complaints are still under analysis.
- Follow up was made on 18 investigations for monopolistic practices.
- One trial-like proceeding was initiated for the probable realization of relative monopolistic practices in the market for the production, distribution, and commercialization of waterproofing products in the national territory.
- This proceeding was added to the 5 that were pending at the end of May; so that, at the end of June, 6 proceedings remain pending.
- 4 proceedings to determine the existence of essential inputs and barriers to competition are still in process.
- One request was received to initiate a proceeding to determine the existence of essential inputs and barriers to competition, which was added to one pending from the previous period. Both requests were deemed as not filed.
- An investigation to determine if there are conditions of effective competition in the maritime transportation of passengers and roll-on/roll-off cargo in Baja California Sur was followed up
Concentraciones
- 38 concentrations were reviewed, of which 8 were initiated during the period. Of these, 16 were authorized; so that at the end of the period 22 concentrations are still under analysis1.
- The amount of authorized operations is 38,542.5 million of pesos.
Amparo trials
- During June, the Judicial Power resolved 5 amparo trials: 1 was granted, 2 were denied, and 2 were dismissed.2 At the end of the period, 452 trials are still in process, of which 391 correspond to economic competition matters.
