No. 04/2021
OCTOBER
The Federal Economic Competition Commission («COFECE») sanctions several companies and individuals for colluding in the market for baby diapers, feminine sanitary protection and incontinence products.
On October 01, 2021, COFECE imposed fines totaling 313,473,000 pesos to Essity Higiene y Salud México, Kimberly Clark de México and Productos Internacionales Mabe, as well as to nine individuals for their role in carrying out absolute monopolistic practices in the market for the sale of baby diapers, feminine sanitary protection and incontinence products in case file IO-004-2017. Read more.
World Bank and International Competition Network award COFECE for its actions to preserve competition in the national electric industry.
The International Competition Network and the World Bank awarded COFECE in the Competition Advocacy Contest 2021 edition for the actions implemented to make economic competition prevail in the electric industry, in line with its constitutional mandate. Read more.
CONEVAL recognizes COFECE for its evaluations to assess the benefits of its actions.
The National Council for the Evaluation of Social Development Policy (CONEVAL) recognized the Commission for its ex ante and ex post evaluations to measure the benefits generated by its actions in the markets in which it intervenes, as they are part of the Good Practices in the Use of Monitoring and Evaluation Results in the Public Policy Cycle. Read more.
COFECE appoints the heads of the General Directorate of Digital Markets and the General Directorate of Market Intelligence.
COFECE’s Board appointed Pedro Isaac Alcalá Berhouague as General Director of Digital Markets. The Investigation Authority appointed Carlos García Cueva as General Director of Market Intelligence. Read more.
NOVEMBER
IFT approves the issuance of Guidelines for processing investigations, procedures and formalities to be carried out by the Investigation Authority.
On November 8, 2021, the Plenary of the Federal Telecommunications Institute («IFT») issued the Guidelines for processing investigations, proceedings and procedures in charge of the Investigation Authority through electronic media. The Guidelines create a digital system that will serve as a platform to file motions and notifications, in addition to interactions between the Investigating Authority and economic agents involved in the different procedures and investigations in charge of such authority. Read more.
COFECE warns of risks to competition and free market access arising from the resolution on projects and works of the Mexican Government considered of public interest and national security.
COFECE warned about the risks to competition and free market access arising from the resolution published on November 22, 2021 on projects and works of the Government of Mexico by granting preferential treatment to a wide range of projects that qualify as being in the public interest or national security. Read more.
DECEMBER
The Investigation Authority issues a preliminary determination on the lack of effective competition in the distribution of LPG to consumers.
On December 1, 2021, the Investigation Authority of COFECE published the extract of the preliminary opinion on the LPG distribution market (DC-001-2021) in which it determined, on a preliminary basis, that there are no effective competition conditions in 213 of the 220 geographic markets defined for the distribution of liquefied petroleum gas (LPG) to consumers through distribution plants and auto-tanks. In its preliminary determination, the Investigation Authority pointed out elements such as the existence of a high concentration in multiple regional markets, regulatory barriers and clandestine associations whose conducts constitute barriers to entry. Read more.
COFECE files constitutional controversy against various omissions by the head of the federal executive branch in the appointment of candidates for commissioner.
On December 2, 2021, COFECE resolved to file a constitutional controversy before the Mexican Supreme Court of Justice, which was filed on December 13, 2021. The controversy deals with the failure of President Andrés Manuel López Obrador to comply with the obligation to select and propose candidates to complete COFECE’s Board. This is due to the fact that COFECE has three vacancies in its Board, some of them have been open for more than a year. Read more.
The IFT issued the Guidelines to determine relevant markets in the telecommunications and broadcasting sectors.
The IFT issued the Guidelines to determine relevant markets in the telecommunications and broadcasting sectors («Guidelines»), as a non-binding reference framework to be used in the analysis and economic competition proceedings in the corresponding sectors that require the determination of relevant markets. The IFT points out that such Guidelines will allow economic agents to know the criteria used by the IFT to determine relevant markets and will provide certainty on the exercise of the IFT’s powers. The Guidelines are based on an analysis of economic theory, judicial and IFT precedents as well as international best practices. Read more.
The IFT issued a non-binding opinion on antitrust matters regarding the Advertising Contracting Law.
The IFT’s Board issued a non-binding opinion on economic competition matters addressed to the Chambers of Senators and Deputies and to the Legal Counsel of the Federal Executive Branch, regarding the Advertising Contracting Law.
The IFT points out, among other issues, that such Law establishes obligations that could be contrary to competition and free market in the telecommunications and broadcasting markets and fails to mention the IFT as the economic competition authority in the corresponding sectors, thus generating uncertainty for regulated agents regarding the competition authority before which they must file the corresponding complaints.
As a result of the foregoing, the IFT recommends repealing the law and, if not possible, to amend the articles that are not justified from an economic competition perspective. Read more.
The IFT made recommendations to state authorities on regulatory barriers to the deployment of fixed telecommunications network infrastructure.
The IFT issued recommendations to various authorities of the State of Guanajuato and the State of Mexico, after concluding that there are regulatory barriers to competition in the provision of fixed broadband internet access service in 43 municipalities of Guanajuato and 123 municipalities of the State of Mexico.
Among other issues, the IFT warned that the existing regulatory barriers in such states raise the costs of deploying a public telecommunications network and hinder the possibility of planning deployment projects in an informed and reasoned manner. Read more.
The IFT declared Megacable as having substantial market power in 9 relevant markets corresponding to the provision of paid television and audio services.
The IFT declared Megacable as having substantial market power in 9 relevant markets for the provision of paid television and audio services, corresponding to the municipalities of San Mateo Atenco and Zinacantepec, State of Mexico; León, Guanajuato; Guadalajara and Tonalá, Jalisco; Cuautlancingo and San Pedro Cholula, Puebla; and Corregidora and El Marqués, Querétaro. The foregoing, considering that Megacable is the leader in each of the 9 relevant markets and that its positioning has not been counteracted by its competitors, as well as taking into account the high concentration in such markets. Read more.
COFECE determines the absence of effective competition conditions in several maritime passenger transportation services (ferries)in routes with origin or destination in the north of Quintana Roo.
On December 17, 2021, COFECE determined the absence of effective competition conditions in the maritime passenger transportation service (ferries) in three relevant markets located in the northern area of Quintana Roo: Cozumel, Puerto Juarez and Zona Hotelera, with a market structure and regulatory barriers that do not favor or nullify competition. Read more.
The IFT published the document «Advocacy and promotion of competition in the telecommunications and broadcasting sectors».
On December 30, 2021, the IFT published the document «Advocacy and promotion of competition in the telecommunications and broadcasting sectors». This document describes the advocacy and competition promotion activities that the IFT has carried out and presents a strategy that could be developed by different areas of the Institute in the short, medium and long term. The document is consistent with recommendations of the OECD and the IFT’s Advisory Council. Read more.
Our Antitrust team is at your service to answer any questions regarding this document.
S I N C E R E L Y,
Amilcar Peredo
Fernanda Garza
León Jiménez
