September 2023
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Anti-competitive conducts
Conductas anticompetitivas
Competition advocacy
Recommended reading
FRONTPAGE
Competition Day 2023
Competition Day 2023
In the framework of the tenth anniversary of the creation of the Federal Economic Competition Commission (Cofece or Commission) as an autonomous constitutional body, on September 7 and 8, the Competition Day 2023 was held, an event in which national and international authorities, public officials, academics, experts and representatives of the business sector talked about the past, present, and future of competition policy in Mexico.
In her intervention, Chairwoman Andrea Marván emphasized that, in these ten years of existence, Cofece has benefited Mexican families. Through its actions, Cofece has improved the welfare of consumers by approximately 34 billion pesos, which is six times more than the budget allocated to this institution in this same period.
Over the course of this decade, the Commission has protected competition by imposing sanctions for collusion, abuses of market power, and non-compliance with conditions and measures to avoid or correct risks to competition. As for preventive actions, Cofece has analyzed more than 1,500 mergers to avoid risks to competition, in addition to more than 400 regulatory frameworks to promote the inclusion of competition principles.
During the event, international authorities and experts gave lectures. Speakers included Cani Fernández, president of the National Markets Commission of Spain; Ioana Marinescu, chief economist of the Antitrust Division of the United States Department of Justice, and Tommaso Valleti, professor at Imperial College of Business London.
In addition to the lectures, discussions were held among experts in which they exchanged reflections and lessons learned to address current and upcoming competition challenges. A common lesson learned in all the panels was that addressing the future challenges for economic competition must include relevant actors from all sectors.
Aware of the context, Cofece is proactive in broadening the impact of competition policy for the benefit of the population and providing solutions to the most important challenges that our society faces.
ANTI-COMPETITIVE CONDUCTS
Cofece identified barriers to competition in the market for the processing of card payments
Cofece determined that there are no of effective competition in the card payment processing services due to excessive concentration in the market, since there are only two providers and because the regulatory ecosystem tends to favor the status quo for the benefit of the clearinghouses already operating in the market, making it difficult for new competitors to enter the market.
If the anticompetitive effects identified by Cofece are corrected, conditions of positive impact on cardholders would be generated, since in Mexico, the fees paid between banks for card payments are 1.36% on average, while in European countries are barely 0.2%; in other words, fees are 6 times higher in our country.
Cofece determined that there are no of effective competition in the card payment processing services due to excessive concentration in the market, since there are only two providers and because the regulatory ecosystem tends to favor the status quo for the benefit of the clearinghouses already operating in the market, making it difficult for new competitors to enter the market.
If the anticompetitive effects identified by Cofece are corrected, conditions of positive impact on cardholders would be generated, since in Mexico, the fees paid between banks for card payments are 1.36% on average, while in European countries are barely 0.2%; in other words, fees are 6 times higher in our country.
Cofece sanctions agreement that limited competition in the industrial gas equipment market
The Board of Commissioners of Cofece sanctioned a total of 2 million 601 thousand 244 pesos to Equipos para Gas, S.A. de C.V. (EGSA), Gas Tecnología y Equipos, S.A.P.I. de C. V. (Gastek), and three natural persons for signing a non-compete agreement that limited the supply of goods and services required for the integration, installation, maintenance, and commercialization of equipment, accessories and spare parts for the use of industrial gases, including LP gas.
In concentrations, non-compete clauses are allowed when they are delimited as to the persons, products, geographic areas, and periods to which they will apply, otherwise, they are considered illegal. Through these agreements, a seller may agree not to enter the same market as a competitor within a certain period, given that it knows how it operates, who are the customers, or where the suppliers are.
The Board of Commissioners of Cofece sanctioned a total of 2 million 601 thousand 244 pesos to Equipos para Gas, S.A. de C.V. (EGSA), Gas Tecnología y Equipos, S.A.P.I. de C. V. (Gastek), and three natural persons for signing a non-compete agreement that limited the supply of goods and services required for the integration, installation, maintenance, and commercialization of equipment, accessories and spare parts for the use of industrial gases, including LP gas.
In concentrations, non-compete clauses are allowed when they are delimited as to the persons, products, geographic areas, and periods to which they will apply, otherwise, they are considered illegal. Through these agreements, a seller may agree not to enter the same market as a competitor within a certain period, given that it knows how it operates, who are the customers, or where the suppliers are.
Cofece notified economic agents of a statement of probable responsibility for possible anticompetitive conduct in the mezcal market
Cofece notified a statement of probable responsibility to a legal person and natural person for their alleged responsibility in unilaterally refusing to sell, commercialize or provide a service in the market for the conformity assessment of mezcal.
Conformity Assessment Bodies carry out a technical process called conformity assessment, by means of which it is demonstrated that specific requirements applicable to a product, process, system, person, or organism are satisfied before it enters the market. This process is essential to guarantee to consumers that the products purchased meet the necessary quality.
The mezcal industry is present in 9 Mexican states and exports to 81 countries. Due to the increasing importance of this sector, competition is necessary for new companies to enter and for established companies to offer more and better products.
Cofece notified a statement of probable responsibility to a legal person and natural person for their alleged responsibility in unilaterally refusing to sell, commercialize or provide a service in the market for the conformity assessment of mezcal.
Conformity Assessment Bodies carry out a technical process called conformity assessment, by means of which it is demonstrated that specific requirements applicable to a product, process, system, person, or organism are satisfied before it enters the market. This process is essential to guarantee to consumers that the products purchased meet the necessary quality.
The mezcal industry is present in 9 Mexican states and exports to 81 countries. Due to the increasing importance of this sector, competition is necessary for new companies to enter and for established companies to offer more and better products.
COMPETITION ADVOCACY
Cofece launches joint initiative with its peers from the United States and Canada within the framework of the 2026 FIFA World Cup
Almost 3 years before the 2026 FIFA World Cup, to be held in Mexico, Canada, and the United States, Cofece, the Antitrust Division of the United States Department of Justice and the Canadian Competition Bureau announced a joint initiative to detect and fight possible anticompetitive conducts by business and individuals involved in the provision of goods and services related to this event.
The realization of this event requires the development of large-scale infrastructure, with their respective engineering, supply of inputs, and intervention of professionals from different branches and labor. Due to the importance and magnitude of the event, the competition authorities will be vigilant to ensure that the economic benefits derived from this event are not affected by anti-competitive conducts that could harm local and international fans.
Almost 3 years before the 2026 FIFA World Cup, to be held in Mexico, Canada, and the United States, Cofece, the Antitrust Division of the United States Department of Justice and the Canadian Competition Bureau announced a joint initiative to detect and fight possible anticompetitive conducts by business and individuals involved in the provision of goods and services related to this event.
The realization of this event requires the development of large-scale infrastructure, with their respective engineering, supply of inputs, and intervention of professionals from different branches and labor. Due to the importance and magnitude of the event, the competition authorities will be vigilant to ensure that the economic benefits derived from this event are not affected by anti-competitive conducts that could harm local and international fans.
Cofece begins receiving requests for opinions or resolutions in the granting of licenses, concessions, permits, and similar through SISELO
To facilitate the management of its procedures, the Commission made available to economic agents the use of the Electronic Request for Tenders and Opinions System (SISELO by its acronym in Spanish), which allows users to submit documents, receive notifications, have access to files remotely 24 hours a day and, in general, process the entire procedure electronically; with this, Cofece seeks to be a cutting-edge competition authority.
To facilitate the management of its procedures, the Commission made available to economic agents the use of the Electronic Request for Tenders and Opinions System (SISELO by its acronym in Spanish), which allows users to submit documents, receive notifications, have access to files remotely 24 hours a day and, in general, process the entire procedure electronically; with this, Cofece seeks to be a cutting-edge competition authority.
RECOMMENDED READING
The things you should know about economic competition
Through a didactic format, in its publication "Las cosas que debes saber sobre competencia económica ", the Commission explains the main concepts of this subject, the way in which economic competition is linked to people's daily lives, the responsibilities of the companies participating in the different markets in compliance with the Law; as well as Cofece's mission in accordance with its constitutional mandate.
BY THE NUMBERS
BY THE NUMBERS
In September, the Commission processed 87 matters, of which 49 were related to mergers, 29 to procedures for monopolistic practices and unlawful concentrations, 4 to special procedures, and 5 to opinions on bidding processes, concessions, or permits.
Complaints, investigations, and trial-like procedures
- 2 complaints were received for anti-competitive practices, which were added to 2 pending from the previous period. Of these, 1 was dismissed and 1 was deemed as not filed;so at the end of the period, 2 complaints are still under analysis.
- An investigation for monopolistic practices was initiated, which was added to 18 pending at the beginning of the period.
- Sanctions were imposed to economic agents responsible for carrying out absolute monopolistic practices in the market of equipment for the use of industrial gases were sanctioned.
- A trial-like proceeding for the probable relative monopolistic practices in the mezcal conformity assessment market was initiated.
- Follow-up was given to 3 procedures to determine the existence of essential facilities and barriers to competition, and 1 procedure to resolve on market conditions.
Concentrations
- 49 concentrations were reviewed, 17 of which were initiated in the period. Of these, 8 were authorized; so at the end of the period, 41 mergers are still under analysis.1
- The amount of authorized transactions is $18,757.9 million Mexican pesos.
Amparo trials
- During September, the Judicial Power resolved 14 amparo trials: 2 were granted, 2 were denied and 10 were dismissed.2 At the end of the period, 442 trials were still in process, of which 390 were related to antitrust matters.
