October 2024
Frontpage
Anticompetitive conducts
Competition studies
Competition advocacy
Institutional strengthening
Recommended reading
FRONTPAGE
Cofece files the first collective action for the first time in its history for manipulation in the supply and prices of medicines
Cofece files the first collective action for the first time in its history for manipulation in the supply and prices of medicines
The Federal Economic Competition Commission (Cofece or Commission) filed the first collective action in its history against Casa Marzam, Casa Saba, Fármacos Nacionales, and Asociación de Distribuidores de Productos Farmacéuticos de la República Mexicana for agreeing for 10 years not to distribute medicines during certain days of the year, limit the quantity of medicines supplied to pharmacies and manipulate sales prices and limit discounts to pharmacies.
Cofece demands that the companies pay 2,316 million pesos to repair the generated damage and requests the Judicial Power that the resources be allocated to IMSS-Bienestar so that they serve to take care of the health of all Mexicans, which was the sector where the damage was suffered.
ANTICOMPETITIVE CONDUCTS
Investigative Authority finds that Gruma must sell 5 production plants to reactivate competition in the Mexican corn flour market
Cofece's Investigative Authority preliminarily concluded that there are no competitive conditions in the market for nixtamalized corn flour sold to tortilla shops (tortillerías in Spanish) in Mexico and identified that Gruma maintains a significant and irreversible advantage over all its competitors, that allows it to set high prices without other companies being able to compete effectively. It was also identified that it has strategies specifically designed to make it difficult for tortilla makers to switch suppliers.
The preliminary statement proposes measures to increase competition in the nixtamalized corn flour market, which could impact the number and size of flour companies in Mexico, creating incentives for Gruma to lower its prices, increase innovation, or improve its products to compete, for the benefit of tortilla consumers.
Cofece's Investigative Authority preliminarily concluded that there are no competitive conditions in the market for nixtamalized corn flour sold to tortilla shops (tortillerías in Spanish) in Mexico and identified that Gruma maintains a significant and irreversible advantage over all its competitors, that allows it to set high prices without other companies being able to compete effectively. It was also identified that it has strategies specifically designed to make it difficult for tortilla makers to switch suppliers.
The preliminary statement proposes measures to increase competition in the nixtamalized corn flour market, which could impact the number and size of flour companies in Mexico, creating incentives for Gruma to lower its prices, increase innovation, or improve its products to compete, for the benefit of tortilla consumers.
Cofece fines for over 237 million pesos for price manipulation waterproofing products
The Commission fined two of the largest waterproofing companies in the country, Pinturas Thermicas del Norte, S.A. de C.V. (Grupo Thermotek) and Polímeros Adhesivos y Derivados, S.A. de C.V. (Impac), as well as five of their executives for more than 237 million pesos. Additionally, it imposed disqualifications for up to five years to executives involved in this illegal conduct, so they cannot serve as executives or representatives of companies that participate in this market.
The sanction resulted from a procedure that proved an agreement between executives and companies to manipulate prices of waterproofing products throughout the national territory to the detriment of consumers, at least between January 30, 2008, and April 7, 2017.
The Commission fined two of the largest waterproofing companies in the country, Pinturas Thermicas del Norte, S.A. de C.V. (Grupo Thermotek) and Polímeros Adhesivos y Derivados, S.A. de C.V. (Impac), as well as five of their executives for more than 237 million pesos. Additionally, it imposed disqualifications for up to five years to executives involved in this illegal conduct, so they cannot serve as executives or representatives of companies that participate in this market.
The sanction resulted from a procedure that proved an agreement between executives and companies to manipulate prices of waterproofing products throughout the national territory to the detriment of consumers, at least between January 30, 2008, and April 7, 2017.
Cofece imposes a fine of more than 437 million pesos on gas stations for manipulating retail prices
Cofece fined 52 gas stations, the Asociación Mexicana de Empresarios Gasolineros (Mexican Association of Gas Businessmen (Amegas)), and 18 executives for a total of 437,911,146 pesos. Those sanctioned illegally conspired to the detriment of end consumers to manipulate the prices of regular and premium gasoline between 2014 and 2021. The regions of the country where these anticompetitive conducts took place are Irapuato and Leon, Guanajuato; Merida, Yucatan and Tuxtla Gutierrez, Chiapas.
Price fixing between competitors is illegal and seriously impacts the economy and the welfare of the population.
Cofece fined 52 gas stations, the Asociación Mexicana de Empresarios Gasolineros (Mexican Association of Gas Businessmen (Amegas)), and 18 executives for a total of 437,911,146 pesos. Those sanctioned illegally conspired to the detriment of end consumers to manipulate the prices of regular and premium gasoline between 2014 and 2021. The regions of the country where these anticompetitive conducts took place are Irapuato and Leon, Guanajuato; Merida, Yucatan and Tuxtla Gutierrez, Chiapas.
Price fixing between competitors is illegal and seriously impacts the economy and the welfare of the population.
COMPETITION STUDIES
Cofece proposes changes in the fintech sector so that Mexicans have access to better financial services
The Commission conducted a study on the digital financial services market and identified various problems that lead to limited options for these services and high costs. To ensure that financial services are available to more people, it proposes a series of concrete actions so that the population can benefit from a greater and better offer of financial services, thus promoting competition and greater financial inclusion.
These recommendations could improve the lives of millions of people: a more competitive financial system creates inclusive economic spillovers, facilitating access to better financial services by families, entrepreneurs, and small and medium-sized businesses owners without incurring high costs or traveling long distances.
The Commission conducted a study on the digital financial services market and identified various problems that lead to limited options for these services and high costs. To ensure that financial services are available to more people, it proposes a series of concrete actions so that the population can benefit from a greater and better offer of financial services, thus promoting competition and greater financial inclusion.
These recommendations could improve the lives of millions of people: a more competitive financial system creates inclusive economic spillovers, facilitating access to better financial services by families, entrepreneurs, and small and medium-sized businesses owners without incurring high costs or traveling long distances.
COMPETITION ADVOCACY
Cofece brings together international competition authorities to expand the fight against practices that harm the population
Cofece held the 2024 Cartel Workshop, organized jointly with the International Competition Network (ICN), which brought together representatives of competition authorities, experts, and professionals from more than 42 countries, who exchanged experiences, best practices, and reflections on the topic “The future of the fight against cartels”.
In her welcome speech, Chair Andrea Marván, emphasized that collusive behaviors are the most harmful for Mexicans, as they increase prices and restrict consumer choices. For this reason, the fight against these behaviors must be a priority not only for antitrust agencies but for society as a whole.
Cofece held the 2024 Cartel Workshop, organized jointly with the International Competition Network (ICN), which brought together representatives of competition authorities, experts, and professionals from more than 42 countries, who exchanged experiences, best practices, and reflections on the topic “The future of the fight against cartels”.
In her welcome speech, Chair Andrea Marván, emphasized that collusive behaviors are the most harmful for Mexicans, as they increase prices and restrict consumer choices. For this reason, the fight against these behaviors must be a priority not only for antitrust agencies but for society as a whole.
Cofece, the U.S. and Canada are working to protect consumers during the 2026 World Cup
Officials from Cofece, the Antitrust Division of the U.S. Department of Justice, and the Canadian Bureau of Competition gave a workshop to officials from the Ministries of Economy and Foreign Affairs, the National Anti-Corruption System, local governments of the host cities, and organizers of the World Cup, on how to prevent, identify and report collusive practices that harm consumers during the 2026 World Cup.
This workshop is the first of several training sessions that will be held to prevent companies from engaging in anti-competitive behavior such as price manipulation or illegal market sharing in the context of the 2026 FIFA World Cup.
Officials from Cofece, the Antitrust Division of the U.S. Department of Justice, and the Canadian Bureau of Competition gave a workshop to officials from the Ministries of Economy and Foreign Affairs, the National Anti-Corruption System, local governments of the host cities, and organizers of the World Cup, on how to prevent, identify and report collusive practices that harm consumers during the 2026 World Cup.
This workshop is the first of several training sessions that will be held to prevent companies from engaging in anti-competitive behavior such as price manipulation or illegal market sharing in the context of the 2026 FIFA World Cup.
INSTITUTIONAL STRENGTHENING
The Board of Commissioners of Cofece appoints Juan Francisco Valerio Méndez as new head of the Technical Secretariat
The Board of Commissioners of Cofece unanimously appointed Juan Francisco Valerio Méndez as its new Technical Secretary, who took office on October 7. The Technical Secretary has a degree in Economics, a degree in Political Science and a Master in Specialized Economic Analysis and has worked in several areas of Cofece since 2007, so he has an in-depth knowledge of the Commission's processes.
Within the Planning, Liaison and International Affairs Unit, his responsibilities included coordinating the monitoring and analysis of regulatory projects and legislative initiatives, as well as the preparation of opinions to introduce competition principles in various regulations; he was also the liaison with the Legislative Branch, as well as with other agencies of the Federal Public Administration.
The Board of Commissioners of Cofece unanimously appointed Juan Francisco Valerio Méndez as its new Technical Secretary, who took office on October 7. The Technical Secretary has a degree in Economics, a degree in Political Science and a Master in Specialized Economic Analysis and has worked in several areas of Cofece since 2007, so he has an in-depth knowledge of the Commission's processes.
Within the Planning, Liaison and International Affairs Unit, his responsibilities included coordinating the monitoring and analysis of regulatory projects and legislative initiatives, as well as the preparation of opinions to introduce competition principles in various regulations; he was also the liaison with the Legislative Branch, as well as with other agencies of the Federal Public Administration.
RECOMMENDED READING
Green Competition Strategy
In this document, the Commission seeks to explore the intersection between sustainability and competition policy, through various efforts. Notable actions include the creation of advocacy documents, conducting market studies, cooperating with international agencies, and organizing forums with the public, private, and academic sectors.
The document also mentions the collection of opinions through a questionnaire open to the public to incorporate diverse perspectives in competition and sustainability policy.
BY THE NUMBERS
BY THE NUMBERS
During October, the Commission dealt with 107 matters, of which 64 correspond to mergers, 26 to proceedings for monopolistic practices and unlawful mergers, 4 to special proceedings, and 13 to opinions on bidding processes, concessions, and permits.
Complaints, investigations, and trial-like proceedings
- 4 complaints were analyzed, of which 1 was filed during the period. Of these, 1 were dismissed and 1 was deemed not filed, so at the end of the month 2 complaints were still under analysis.
- 16 investigations for monopolistic practices and unlawful mergers were followed up on
- 6 trial-like proceedings were followed up, one of which concluded with the imposition of sanctions of more than 437 million pesos on the economic agents responsible for manipulating gasoline prices between 2014 and 2021.
- 4 special procedures were followed to determine the existence of essential facilities and barriers to competition.
Mergers
- 64 mergers were monitored, 10 of which were notified during the period. Of these transactions, 19 were authorized and 1 was closed, and 44 remained under analysis at the end of the month.1
- The amount of authorized transactions was $365,648.1 million pesos.
Amparo trials
- During October, the Judicial Power resolved 3 amparo trials: 2 were granted, 3 were denied and 1 was dismissed.2 At the end of the period, 365 trials are still in process, of which 331 correspond to economic competition matters.
1. The file numbers of the authorized mergers are: CNT-004-2024-I (Vitalis Pharmaceuticals Holdings S.L. / Sanfer Farma, S.A.P.I. de C.V. / ALAOF V Injectable Investors I Holdings S.A.R.L.), CNT-066-2024 (Nissan Motor Co., Ltd. / Kasai Kogyo Co., Ltd), CNT-067-2024 (Química Delta, S.A. de C.V. / Brenntag Pacific, S. de R.L. de C.V. / Banca Mifel, S.A., Institución de Banca Múltiple, Grupo Financiero Mifel / Brenntag Mexico, S.A. de C.V / persona física), CNT-068-2024 (Vinte Viviendas Integrales, S.A.B. de C.V. / Servicios Corporativos Javer, S.A.B. de C.V.), CNT-081-2024 (Shell Overseas Investments, B.V. / Shell Mexico, S.A. de C.V. / Servicio Naftoni, S.A. de C.V. / ), CNT-084-2024, CNT-088-2024 (Proma S.P.A. / Proma Automotive de México, S.A. de C.V. / Allgaier Werke GmbH / Allgaier de Puebla, S.A.P.I. de C.V. / Allgaier Automotive GmbH), CNT-092-2024 (Heliostar Metals Ltd. / Florida Canyon Gold Inc.), CNT-093-2024 (Mill Point Capital, LLC / Impala Splitter LP / Grupo Visa, S.A. de C.V. / Grupo Industrial Emprex, S. de R.L. de C.V. / Fomento Económico Mexicano, S.A.B. de C.V. / Femsa Empaques, S.A. de C.V. / Aeritek Global Parent LLC), CNT-095-2024 (Regional Restaurants, S.A. / Banco Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero / Pequeño Caesarmex, S.A.P.I. de C.V.), CNT-096-2024, CNT-097-2024 (Im Not A Freight MX LLC / ConMet de México, S.A. de C.V.), CNT-098-2024 (CIBanco, S.A., Institución de Banca Múltiple / Finsa Portafolios, S. de R.L. de C.V. / persona física), CNT-102-2024 (RLH Properties, S.A.B. de C.V. / Mayakoba Thai, S.A. de C.V. / Hi Holdings Baja B.V.), CNT-103-2024, CNT-107-2024 (Neoris N.V. / Ma Monredo (Netherlands) B.V. / EPAM Systems, Inc. / Cemex, S.A.B. de C.V.), CNT-108-2024 (Saint-Gobain Europe Du Nord S.A.S. / Ovniver, S.A. de C.V. / Lionshead Holdings LP. / Aresa Capital, LLC. / persona física), CNT-120-2024 (Fintech Value S.A R.L. / Alfa, S.A.B. de C.V.), CNT-125-2024 (Mexico Pacific Limited Holdings, LLC / Mexico Pacific Assets Holdings, S. de R.L. de C.V.).
2. It is reported that the court that issued the final ruling and the file number of the dismissed amparo trial is: Second Collegiate Court in Specialized Administrative Matters, Exp. 85/2022, and of the denied amparo trials are: First Collegiate Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 236/2022, and Second Collegiate Circuit Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 79/2024.
Monthly Report – September 2024
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