COFECE initiates investigation in the market for the development, marketing and sale of digital goods and/or services, as well as related services.

Mexico City, July 4, 2023.

The Investigating Authority of the Federal Economic Competition Commission ("COFECE") published on July 3, 2023 the notice of initiation of a complaint investigation for the possible conduct of relative monopolistic practices with file number DE-023-2023, in the market for the development, marketing and sale of digital goods and/or services, as well as related services in the national territory.

In this regard, COFECE stated that this investigation focuses on products such as e-books, software, video games, photographs, music and online movies, among others. These digital goods and services are created by developers and marketed to end users through various channels. In addition, COFECE stated that it will analyze the negotiation and payment processing mechanisms associated with these transactions. In this regard, it noted that, in 2021, video game sales in the country increased by 24% compared to the previous year, while digital book sales grew by 35% and digital photo and video sales by 19%.

In this investigation, COFECE may request written information, conduct verification visits, as well as summon economic agents that participate or have a relationship with such market to testify. According to the Ley Federal de Competencia Económica ("LFCE"), there is an obligation for the economic agents that are requested and visited to cooperate and submit the requested information to COFECE.

The purpose of the publication of this investigation is to provide any economic agent with an interest in the investigation with the opportunity to cooperate and state what it deems appropriate in relation to the investigated conduct or circumstances that may be contrary to the LFCE. Therefore, any person or company that considers that it has an impact on the market under investigation will have the opportunity to express it before COFECE.

The lawyers of the Antitrust area of the Firm are at your disposal to answer any questions regarding the content of this document.

Sincerely yours:

Amilcar Peredo

León Jiménez

María Guadalupe Jiménez Gama

Juan Maria Lopez