QUARTERLY NEWSLETTER – SECOND QUARTER
July 2024
APRIL
Cofece files a complaint before the Office of the Federal Attorney against individuals who allegedly manipulated prices in the sale of building coating products
The Investigating Authority (IA) of the Federal Economic Competition Commission (Cofece) filed a complaint before the Attorney General’s Office (FGR) against several individuals for probable collusion with the purpose of illegally manipulating the prices of coating products in the construction industry.
According to the Federal Economic Competition Law and the Federal Criminal Code, the IA may denounce criminal conduct so that those involved face prison sentences ranging from five to ten years. The investigation corresponds to the Federal Public Prosecutor’s Office. Criminal liability will be determined by the Judiciary, without prejudice to Cofece.
In addition, Cofece conducts an administrative proceeding where the parties involved present evidence and allegations. At the conclusion of this process, the Board of Commissioners of the Cofece will decide on administrative responsibility and sanctions. Read more.
Cofece finds evidence of possible illegal agreements between suppliers of federal freight transportation
Cofece, as part of its new competition policy, focuses on markets that affect the costs of supply chains, as illegal conduct in these sectors causes Mexican families to be restricted in their purchasing possibilities. Freight transportation is crucial for industry and commerce, moving 56.8% of cargo in 2022, according to data from the Ministry of Infrastructure, Communications and Transportation.
In this new stage of competition policy, Cofece is committed to make use of all its powers to ensure that markets such as freight transportation operate without illegal agreements that negatively affect households and businesses. Read more.
Cofece fines a company and two individuals for closing an operation on terms other than those previously authorized
Cofece fined Gebr. Knauf KG and two individuals with a total of 1 million 545 thousand pesos for having carried out a concentration under terms different from those originally approved by Cofece. Specifically, a non-compete clause was added without previously informing Cofece, preventing the Commission from evaluating the effects of the clause in the market. Cofece emphasizes the importance of transparency in mergers and acquisitions to protect consumers. Read more.
MAY
The Investigative Authority of the Federal Economic Competition Commission identifies barriers that affect competition in the federal passenger transportation
Cofece’s IA identified barriers that prevent effective competition in the federal passenger transportation market in Mexico. This market is extremely important since, in 2022, Mexican families spent almost 20% of their spending on transportation.
Six possible barriers to competition were identified: the existence of relationships between competitors, crossed directories and contact spaces between competitors, regulatory obligation to have origin and destination passenger terminals to provide passenger transportation services, limitation of permits to specific routes to provide passenger transportation services, discretionality, opacity and lack of transparency in the operation of passenger terminals, and regulatory restriction to use vehicles other than buses to provide passenger transportation services.
In its preliminary opinion, the IA proposes to eliminate these barriers by putting an end to co-investments between companies and preventing the same people from making decisions in several competing companies. It also proposes that the companies and CANAPAT implement compliance programs to give the correct compliance to the Federal Economic Competition Law. Read more.
Cofece fines six companies with more than 58 million pesos for failing to notify two mergers
The Board of Commissioners of the Cofece sanctioned six companies that sell gasoline and diesel for not notifying two concentrations.
Cofece stated that Servicios Gasolineros de México, S.A. de C.V. (Segamex) made two acquisitions that exceeded the thresholds established in the Federal Economic Competition Law. In 2015, Segamex acquired control of 14 service stations from a Grupo de Interés Económico (GIE) comprised of Gasolinera Boquilla, S.A. de C.V., Combylub, S.A. de C.V., and Servicio Camionero de Jiménez, S.A. de C.V. In 2017, acquired control of 2 service stations from another GIE formed by Alamillo Promotora e Inmobiliaria, S.A. de C.V., and Gasolinera Mirasierra, S.A. de C.V. Read more.
Cofece is awarded by the World Bank and the International Competition Network for promoting the culture of competition
Cofece was awarded for the publication of the book «La política de competencia en México: retrospectiva, balances y retos» in the category of «Promoción de la cultura de competencia comunicando su impacto y resultados» in the Competition for Competition Advocacy 2024. This competition, organized by the World Bank and the International Competition Network, recognizes success stories in the promotion of competition.
The book recounts 30 years of competition policy in Mexico, highlighting lessons learned and challenges to build a fairer and more inclusive economy. It also provides evidence of the impact of Cofece’s actions on the well-being of the population and emphasizes the importance of strengthening its powers, collaborating with other institutions and communicating the tangible benefits of competition. Read more.
Andrea Marván Saltiel is appointed Vice Chair of the International Competition Network
Andrea Marván Saltiel, president of Cofece, was appointed vice president of the International Competition Network (ICN). In this position, she will focus on inclusive development, social justice, gender equity and sustainability. Marván Saltiel will promote the new phase of competition policy in emerging countries and facilitate the exchange of experiences and knowledge among agencies.
The ICN, founded in 2001, includes 143 competition agencies from 130 countries, and focuses on the enforcement of competition laws and policies. Read more.
JUNE
Cofece acknowledges the work of Fidel Sierra as Head of the Technical Secretariat
Cofece recognized Fidel Gerardo Sierra Aranda for his work as head of the Technical Secretariat during the last seven years, which concluded on May 31. He will be temporarily replaced by Myrna Mustieles García, General Director of Legal Affairs, until a new head is appointed.
Fidel Sierra joined Cofece in 2008, held several key positions and contributed to the creation and updating of regulations, as well as leading the first trial proceedings under the new Federal Economic Competition Law. Read more.
Cofece finds evidence of illegal agreements in newborn medical tests
The IA of Cofece initiated an investigation (file IO-003-2023) to determine whether there were absolute monopolistic practices in the public purchases of supplies for neonatal metabolic screening tests. This test is mandatory since 1998 and detects hereditary diseases in newborns, so any collusion in its purchase seriously affects the population. Read more.
Cofece sanctions a company and 3 individuals for manipulating the price of marine diesel
Cofece sanctioned Combustibles Puerto de Abrigo Dzilam de Bravo, S.A. de C.V. and three individuals with fines totaling 3.4 million pesos for manipulating the price of marine diesel in Dzilam de Bravo, Yucatan. Marine diesel is essential for maritime transportation and tourism in coastal areas.
Cofece, in compliance with the new phase of competition policy, reaffirms its commitment to investigate sectors that affect consumer welfare, such as transportation and logistics. Read more.
Cofece sanctions the Mexican Regulatory Council for the Quality of Mezcal with over 4 million pesos for harming mezcal producers
Cofece fined the Consejo Mexicano Regulador de la Calidad del Mezcal and an executive with a total of 4.17 million pesos for unjustifiably refusing to certify mezcal producers between February 2018 and August 2021; in addition, the sanctioned executive may not hold similar positions in mezcal certification companies for three years. This conduct is considered a relative monopolistic practice, since it sought to displace other companies and favor certain producers. Read more.
