BASHAM NEWS

COFECE HAS OPENED AN INVESTIGATION INTO ALLEGED ABUSE OF DOMINANCE PRACTICES IN THE MARKET FOR SUPPLY, WHOLESALE AND RETAIL DISTRIBUTION OF CONSUMER GOODS AND RELATED SERVICES.

Mexico City, November 26th, 2020.

 

The Federal Economic Competition Commission (FECC) announced today that it has opened an ex-officio investigation no. IO-002-2020 into possible abuse of dominance practices in the market for supply, wholesale and retail distribution of consumer goods and related services. IO-002-2020 into possible abuse of dominance practices in the market for supply, wholesale and retail distribution of consumer goods and related services.

 

The FECC explained that the recently published Study of Competition in the Modern Food and Beverage Retail Channelpoints out that modern channel large retail chains can impose terms and conditions on their suppliers (such as delaying payments or applying discounts), adding that this type of behavior generates uncertainty for small suppliers and transfers the risk that the products that the retailer has already purchased will not be sold to the supplier, which negatively impacts their finances.

 

The FECC may require economic agents in the relevant market to provide documents or information or conduct on-site inspections. In such cases, the Federal Economic Competition Law (FECL) may compel such economic agents to cooperate with the FECC and provide it with the requested information.

 

Should you require any further information in this regard, the Economic Competition practice area of the firm will be pleased to provide any additional information on this topic.

 

S I N C E R E L Y,

 

Amilcar Peredo

peredo@basham.com.mx

 

Fernanda Garza

fgarza@basham.com.mx

 

León Jiménez

ljimenez@basham.com.mx

 

Carmina Paredes
cparedes@basham.com.mx