June 2024
Frontpage
Anticompetitive conducts
Institutional strengthening
Recommended reading
FRONTPAGE
Cofece sanctions the Mexican Regulatory Council for the Quality of Mezcal with more than 4 million pesos for affecting mezcal producers
Cofece sanctions the Mexican Regulatory Council for the Quality of Mezcal with more than 4 million pesos for affecting mezcal producers
The Board of Commissioners of the Federal Economic Competition Commission (Cofece or Commission) fined the Mexican Regulatory Council for the Quality of Mezcal, as well as a director, after proving that they unjustifiably refused to provide the certification service to mezcal producers between February 2018 and August 2021.
The fines imposed amount to a total of 4 million 170 thousand 311 pesos, as it was proven that the conduct was carried out intentionally. In addition, the sanctioned director will not be able to hold a similar position in any company whose purpose is the certification of compliance with NOM-070-SCFI-2016 (NOM Mezcal) for three years.
As part of the new phase of the economic competition policy, Cofece maintains its commitment to monitor that there are conditions of competition in all goods and services, as well as to use its powers to the fullest extent to sanction anti-competitive conducts that directly affect small producers and prevent their access to markets.
ANTICOMPETITIVE CONDUCTS
Cofece finds evidence of illegal agreements in medical tests for newborns
The Commission’s Investigative Authority (IA) initiated an ex officio investigation to determine whether absolute monopolistic practices were carried out in the public procurement of supplies needed for neonatal metabolic screening tests.
The IA has 120 working days from the beginning of the investigation, which may be extended up to four times, to conclude its inquiry. If illegal agreements are confirmed, those found responsible will be called to a trial-like procedure to present their defense. The initiation of the investigation does not constitute any prejudgment.
The Commission’s Investigative Authority (IA) initiated an ex officio investigation to determine whether absolute monopolistic practices were carried out in the public procurement of supplies needed for neonatal metabolic screening tests.
The IA has 120 working days from the beginning of the investigation, which may be extended up to four times, to conclude its inquiry. If illegal agreements are confirmed, those found responsible will be called to a trial-like procedure to present their defense. The initiation of the investigation does not constitute any prejudgment.
Cofece sanctions a company and 3 individuals for manipulating the price of marine diesel
Cofece determined to sanction Combustibles Puerto de Abrigo Dzilam de Bravo, S.A. de C.V., as well as 3 individuals for manipulating the price of marine diesel at service stations in Dzilam de Bravo, in the state of Yucatan. The fines imposed total 3 million 417 thousand 895 pesos.
Cofece, as part of the new phase of the economic competition policy, maintains its commitment to analyze and investigate with special emphasis those sectors whose goods and services have a greater impact on consumer welfare, such as the transportation and logistics sector.
Cofece determined to sanction Combustibles Puerto de Abrigo Dzilam de Bravo, S.A. de C.V., as well as 3 individuals for manipulating the price of marine diesel at service stations in Dzilam de Bravo, in the state of Yucatan. The fines imposed total 3 million 417 thousand 895 pesos.
Cofece, as part of the new phase of the economic competition policy, maintains its commitment to analyze and investigate with special emphasis those sectors whose goods and services have a greater impact on consumer welfare, such as the transportation and logistics sector.
INSTITUTIONAL STRENGTHENING
Cofece acknowledges the work of Fidel Sierra as Head of the Technical Secretariat
The Commission expresses its recognition to Fidel Gerardo Sierra Aranda for his work as head of the Technical Secretariat, a position he held for the last 7 years and which concluded last May 31, closing a cycle after a 16-year career in Cofece.
Under Cofece's Organic Statute in force, he will be replaced by Myrna Mustieles García, General Director of Legal Affairs, until Cofece's Board of Commissioners appoints the person who will permanently occupy this position.
In this transition of leadership of the Technical Secretariat, each of the ongoing proceedings will continue with due process and the highest technical rigor.
The Commission expresses its recognition to Fidel Gerardo Sierra Aranda for his work as head of the Technical Secretariat, a position he held for the last 7 years and which concluded last May 31, closing a cycle after a 16-year career in Cofece.
Under Cofece's Organic Statute in force, he will be replaced by Myrna Mustieles García, General Director of Legal Affairs, until Cofece's Board of Commissioners appoints the person who will permanently occupy this position.
In this transition of leadership of the Technical Secretariat, each of the ongoing proceedings will continue with due process and the highest technical rigor.
RECOMMENDED READING
Cofece in numbers 2023
This publication presents Cofece's achievements and activities, and aims to celebrate a decade of operation, in which key issues have been addressed such as the review of corporate mergers, the detection of anti-competitive practices, and the promotion of competition in various sectors.
2023 was the year in which a new path that defines Cofece's actions in the coming years was outlined, focusing on 3 main areas: a Commission close to the people, the use of Cofece´s legal powers to the fullest extent, and the opening of channels for dialogue with authorities at all levels of government.
In the words of the Chair, Andrea Marván Saltiel: "This document points out only some relevant data and actions that the Commission implemented during 2023, as well as information on how Cofece has contributed to creating a more prosperous Mexico after a decade of existence."
BY THE NUMBERS
BY THE NUMBERS
During June, the Commission processed 119 matters, of which 70 correspond to concentrations, 29 to procedures for monopolistic practices and unlawful mergers, 4 to special procedures, and 16 to opinions on bidding processes, concessions, and permits.
Complaints, investigations, and trial-like procedures
- 5 complaints were analyzed: 2 were filed during the period and 3 pending from the previous period. 1 was deemed as not filed and 2 were dismissed; therefore, at the end of the month, 2 complaints remain under analysis.
- 1 investigation was initiated, which was added to the 15 pending from the previous period, so that at the end of the month, 16 investigations were in progress.
- Follow-up was given to 8 procedures for monopolistic practices and unlawful mergers and, in May, the sanctioning of a company and three individuals for manipulating the price of marine diesel was made public.
- In June, a procedure concluded with the sanction of the Mexican Regulatory Council for the Quality of Mezcal (for relative monopolistic practices.
- At the end of the period, 7 trial-like procedures were still in progress.
- Follow-up was given to 4 special procedures to determine the existence of essential facilities and barriers to competition.
Mergers
- 70 mergers were analyzed, of which 11 were notified during the period and 59 during previous months. Of these transactions, 18 were authorized leaving 52still under analysis at the end of the period.1
- The amount of authorized transactions is $71,843.6 million Mexican pesos.
Amparo trials
- During June, the Judicial Power resolved 5 amparo trials: 3 were granted, 1 was denied and 1 was dismissed.2 At the end of the period, 386 trials are still in process, of which 347 correspond to economic competition matters.
1. The files of the authorized mergersare: CNT-121-2023 (Westrock Company / Smurfit Kappa Group PLC), CNT-145-2023 (Grupo Uribe Capital, S.A.P.I. / Autoservicio Sargento, S.A. de C.V. / Autoservicio Palmira, S.A. de C.V.), CNT-010-2024 (Minera San Julian, S.A. de C.V. / Coeur Mexicana, S.A. de C.V.), CNT-012-2024 (Pagurus, S. de R.L. de C.V. / Pacific-Coraspv, S.A. de C.V. / MRP CKD III, S. de R.L. de C.V. / Intercam Banco, Sociedad Anónima, Institución de Banca Múltiple, Intercam Grupo Financiero / CIBanco, Sociedad Anónima, Institución de Banca Múltiple), CNT-026-2024 (Planigrupo Latam, S.A.B. de C.V. / Banco Invex, S.A., Institución de Banca Multiple, Invex Grupo Financiero / Banco Actinver, S.A., Institución de Banca Múltiple, Grupo Financiero Actinver), CNT-027-2024 (Davisa Desarrollos Inmobiliarios, S.A. de C.V. / CIBanco, S.A., Institución de Banca Múltiple), CNT-028-2024 (Buffalo Holdings, S.A.R.L. / Ai Sariya Third Commercial Investments RCS Limited / Actis GP LLP), CNT-031-2024 (Savina Holdings L.P. / Avina Holdings GP LLP / General Atlantic Partners, L.P. / Gap Arthur Holdco, L.P. / Actis Holdings S.À R.L.), CNT-032-2024, CNT-034-2024 (CIBanco S.A., Institución de Banca Múltiple / Banco Ve Por Mas, S.A. de C.V., Institución de Banca Múltiple, Grupo Ve Por Mas / Banco Monex, S.A., Institución de Banca Múltiple, Monex Grupo Financiero), CNT-035-2024, CNT-038-2024, CNT-041-2024 (Vetecar, S.A. de C.V. / Grupo Ciosa, S.A.P.I. de C.V. / Grupo Ciosa Comercial, S.A.P.I. de C.V. / Auto-Todo Mexicana, S.A. de C.V. / Persona Física), CNT-042-2024 (Glatfelter Corporation / Berry Global Group Inc.), CNT-046-2024 (Impulsora Ocan, S.A. de C.V. / Corporacion Rama, S. de R.L. de C.V. / Centro de Distribución Oriente, S.A. de C.V.), CNT-054-2024, CNT-056-2024 (Compañía Cervecera de Coahuila, S. de R.L. C.V. / Compañía Cervecera BC, S. de R.L. de C.V. / CB Cerveza Operations, S. de R.L. de C.V.), CNT-059-2024 (Exi Energia Mexico, S.A.P.I. de C.V. / Engie International Corporation B.V.).
2. Of which it is reported that the jurisdictional body that finally resolved and the file number of the Amparo trials granted are: Fourth Collegiate Circuit Court of the Auxiliary Center of the First Region, R.A. 190/2023; First Collegiate Circuit Court of the Auxiliary Center of the First Region, R.A. 905/2022; Fourth Collegiate Circuit Court of the Auxiliary Center of the First Region, R.A. 1455/2022; of the Amparo trials dismissed is: Second Collegiate Court in Administrative Matters, Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 608/2023, and of the denied Amparo Trials is: Second Collegiate Court in Administrative Matters, Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 467/2023.
Resumen Ejecutivo del Primer Informe Trimestral 2024