Mexico City, May 31st, 2021.
The Federal Economic Competition Commission (FECC) announced today that it has initiated investigation no. DC-001-2021 to determine whether effective competition conditions exist in the non-pipeline distribution of Liquefied Petroleum Gas (LPG).
The FECC clarified that the relevant market is related to the sale of LPG through portable containers (cylinders) and tank truck, which supply homes and businesses that have stationary tanks. Therefore, the investigation excludes distribution through pipelines.
Likewise, it clarified that: (i) this investigation is independent of those currently pending before the FECC and (ii) that in this proceeding, if the absence effective competition is detected, the Energy Regulatory Commission, the sectorial regulatory authority, could initiate a regulatory process to establish considerations, prices or tariffs in the distribution of LPG to the final consumer.
In this investigation, the FECC may require information in writing, as well as summon those who participate or have a relationship with the market to testify. In accordance with the Federal Economic Competition Law, there is an obligation for economic agents involved to cooperate and submit the requested information to the FECC, if asked to do so.
On the other hand, the announcement of the investigation aims to provide any interested economic agents with the opportunity to cooperate and participate in the process regarding the investigated market. Therefore, any person or company that considers that has an interest in the relevant market will have the opportunity provide information before the FECC.
The Competition and Antitrust Practice of the firm will be pleased to provide any additional information on the topic.
S I N C E R E L Y,