May 2022
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Anticompetitive conducts
Recommended reading
FRONTPAGE
Cofece initiates study on free market access and economic competition in the markets of production, distribution and commercialization of beef and related markets
Cofece initiates study on free market access and economic competition in the markets of production, distribution and commercialization of beef and related markets
The Board of the Federal Economic Competition Commission (Cofece or Commission) approved the conduction of a study on matters of free market access and economic competition in the markets of production, distribution and commercialization of beef and related markets, as it considers them part of the priority sectors for the economy, household expenditure and employment in our country.
This study is aligned with 2022-2025Cofece’s Strategic Plan, since the beef market is a part of the priority sector of food and beverages. Beef is a widely consumed good, impacts the lower-income population and is subject to regulations.
Persons, institutions and economic agents interested in providing comments and submitting elements they deem relevant for analysis of the market, from a perspective of competition, may do so via email to the following address: estudiocarnederes@cofece.mx or directly at the Commission’s Filing Office, located at Avenida Revolucion number 725, floor 1, Santa María Nonoalco, Benito Juárez, Mexico City, Postal Code 03700.
It is important to mention that, in accordance with the agreement to initiate the study of the market for meat and related products, the final document does not constitute a prejudgment on possible violations to the Federal Economic Competition Law (LFCE, per its initials in Spanish).
ANTICOMPETITIVE CONDUCTS
Cofece investigates possible relative monopolistic practices in the market of access to commercial spaces and the provision of commercial services in the airports of South-Southeast Mexico
The Investigative Authority of Cofece published the extract of the initiation agreement of the ex officio investigation, file number IO-002-2021, for the possible realization of relative monopolistic practices in the market of access to commercial spaces and the provision of commercial services at airports of the South-Southeast of Mexico and its related services.
Airports function as multiple services providers since, in addition to providing aeronautical services, they offer commercial services aimed at satisfying the needs of users of their terminals. These spaces are strategically located as public areas available to consumers in general, or exclusive spaces for passengers before or after boarding a flight.
The inquiry analyzes access to obtain commercial spaces in said airport zones in order to provide a service or sell a product, which is known as commercial services. This investigation is relevant considering that, for example, in 2020, 9.35 million passengers transited the airports in the South and Southeast of the country.
This investigation, which began on November 30, 2021, should not be understood as a prejudgment of the responsibility of any economic agent. The foregoing, since so far, no violations of the regulations on economic competition matters have been definitively identified, nor the subject or subjects, who, if applicable, would be considered as probable responsible at the end of this investigation.
The timeframe for this investigation is up to 120 working days, counted from the date in which the investigation began, which may be extended for an equal term up to four times.
If by the end of the investigation no elements that presume the realization of said anticompetitive practice are found, the Board of COFECE may resolve its closure. In the case that elements that presume an infringement of the Law are found, those who are probable responsible will be called to a trial-like procedure so that they can defend themselves.
If a relative monopolistic practice is proven, the responsible economic agent or agents could be sanctioned with fines of up to 8% of their income and the order to suppress the conduct.
The Investigative Authority of Cofece published the extract of the initiation agreement of the ex officio investigation, file number IO-002-2021, for the possible realization of relative monopolistic practices in the market of access to commercial spaces and the provision of commercial services at airports of the South-Southeast of Mexico and its related services.
Airports function as multiple services providers since, in addition to providing aeronautical services, they offer commercial services aimed at satisfying the needs of users of their terminals. These spaces are strategically located as public areas available to consumers in general, or exclusive spaces for passengers before or after boarding a flight.
The inquiry analyzes access to obtain commercial spaces in said airport zones in order to provide a service or sell a product, which is known as commercial services. This investigation is relevant considering that, for example, in 2020, 9.35 million passengers transited the airports in the South and Southeast of the country.
This investigation, which began on November 30, 2021, should not be understood as a prejudgment of the responsibility of any economic agent. The foregoing, since so far, no violations of the regulations on economic competition matters have been definitively identified, nor the subject or subjects, who, if applicable, would be considered as probable responsible at the end of this investigation.
The timeframe for this investigation is up to 120 working days, counted from the date in which the investigation began, which may be extended for an equal term up to four times.
If by the end of the investigation no elements that presume the realization of said anticompetitive practice are found, the Board of COFECE may resolve its closure. In the case that elements that presume an infringement of the Law are found, those who are probable responsible will be called to a trial-like procedure so that they can defend themselves.
If a relative monopolistic practice is proven, the responsible economic agent or agents could be sanctioned with fines of up to 8% of their income and the order to suppress the conduct.
RECOMMENDED READING
Study on competition in the modern channel of retail commerce of food and beverages
Retail commerce of food and beverages is important for the welfare of the population: families allocate 27% of their expenditure to the purchase of these products and 9.3 million people work in this sector. Cofece carried out this study with the aim of inquiring if the sector operated adequately in terms of efficiency and economic competition for the benefit of consumers.
BY THE NUMBERS
BY THE NUMBERS
In May, the Commission handled 111 matters, of which 65 correspond to concentrations, 31 to procedures for monopolistic practices and prohibited concentrations, 4 special procedures1, and 11 are opinions on tender processes, concessions or permits.
Complaints, investigations and trial-like procedures
- Follow-up was made to 7 complaints for anticompetitive conducts, 6 are still under analysis.
- 20 investigations of monopolistic practices were followed-up; all of which are ongoing.
- Progress is being made in 4 trial-like procedures, that are still being processed
- 3 procedures for barriers to competition are being analyzed; they are still being processed.
- 1 case to declare competition conditions is still in process.
Concentrations
- 65 concentrations were reviewed, of which 11 were authorized2.
- The amount of the authorized concentrations is of 25,690.41 million Mexican pesos.
Opinions
- During the period,4 regulatory analyses were carried out ex officio.
Amparo trials
- During May, the Judicial Power resolved 6 amparo trials. 1 was granted, 1 was denied and 4 were dismissed. At the end of the period, 434 trials are still being processed, of which 334 correspond to economic competition matters.
1.-Special procedures correspond to files for essential facilities and barriers to competition, and to the resolutions on effective competition conditions.
2.-CNT-157-2021, PERSONAS FÍSICAS / GRUPO VIZ, S.A.P.I. DE C.V. / COMERCIALIZADORA SUKARNE, SA DE CV; CNT-001-2022, GRUPO GAZPRO, S.A. DE C.V. / NUEVA WAL-MART DE MEXICO, S. DE R.L. DE C.V; CNT-022-2022, STEELE APOLLO INVESTMENT SARL / TORTUGA RESORTS, S.A. DE C.V; CNT-028-2022, ELECNOR, S.A. / ENAGAS INTERNACIONAL, S.L., SOCIEDAD UNIPERSONAL / MIP V INTERNATIONAL AIV, L.P. / MORELOS O&M, S.A.P.I. DE C.V. / GASODUCTO DE MORELOS, S.A.P.I. DE C.V; CNT-034-2022, HAGEMEYER PPS LTD / NAUTIC PARTNERS, LLC / SONEPAR USA HOLDINGS, INC. / VALLEN BUYER, LLC; CNT-037-2022, CONSTRUCREDITO, S.A. DE C.V. / GENTERA, S.A.B. DE C.V. / N5, S.A. DE C.V; CNT-040-2022, ENDEAVOUR SILVER CORP. / SSR MINNG INC; CNT-042-2022, PESEIDON BIDCO S.A.S. / POSEIDON HOLDCO (LUX), S.C.A. / INGENICO GROUP, S.A; CNT-046-2022, INFRA VIA III, INVEST S.A. / INFRA VIA IV INVEST S.A.R.L. / LH REDEN 2020 SAS / LEGENDRE HOLDING 25 SAS / PERSONAS FÍSICAS / SOLISEA SAS / PATARRI SARL / MANDEL CONSORTIUM S.A.R.L; and CNT-056-2022, BANCO INVEX, S.A. INSTITUCION DE BANCA MULTIPLE, INVEX GRUPO FINANCIERO / DISCOVERY AMERICAS INVESTMENTS PARTNERS CORP. / SG INVESTMENTS LLC / GRUPO SUG S.A. DE C.V / CONSULTORÍA JURÍDICA TRANSNACIONAL, S.A. DE C.V. / PERSONAS FÍSICAS / CENTRO HOSPITALARIO MAC, S.A.
