No. 03/2021
JULY
COFECE publishes an informative note regarding the work done on the LPG market.
On July 7, the Federal Economic Competition Commission ("COFECE" or "Commission") reported on the actions and efforts it has undertaken regarding the gasoline, diesel, LP gas, turbo fuel and electricity markets. COFECE informed that there are currently two investigation procedures in the LPG market at a national level: (i) investigation to determine the existence of effective competition conditions in the sale of LPG to the public and (ii) possible collusive agreements between LPG distribution companies. Likewise, in terms of promoting competition, COFECE recalled the publication of the study "Transition to Competitive LP Gas Energy Markets" in 2018 in which it sought to alert about the concentration of this market. Read more.
Open public consultation on "Preliminary Draft Guidelines to determine Relevant Markets in the Telecommunications and Broadcasting Sectors".
On July 9, the Federal Telecommunications Institute ("IFT") submitted for public consultation the preliminary version of the "Preliminary Draft Guidelines to determine Relevant Markets in the Telecommunications and Broadcasting Sectors", in order to receive comments to enrich it. The consultation ended on September 3. The main objectives of the Preliminary Draft are to provide guidance to economic agents on the criteria and tools used by the IFT when determining relevant markets in the telecommunications and broadcasting sectors, as well as to provide certainty to the participants of these markets on the exercise of the IFT's powers as an economic competition authority. Read more.
COFECE publishes report on the public consultation of the Draft Amendment to the Regulatory Provisions for the Qualification of Information Derived from Legal Advice Provided to Economic Agents.
On July 14, the Commission published the report on the public consultation of the Preliminary Draft Modification to the Regulatory Provisions for the Qualification of Information Derived from Legal Advice Provided to Economic Agents, which was open to the general public for comments from May 28 to June 16.
As a result of this consultation, the Commission received three participations, as well as the opinion of the IFT. The following aspects stand out: (i) modification or elimination of the requirements of identification and description of privileged documents and files; (ii) reconsideration of the requirement of accreditation of the legal advisor as a lawyer; among others. Read more.
COFECE issues recommendation to the CRE on the process to set LPG price regulation.
On July 28, the COFECE published an exhortation to the Energy Regulatory Commission ("CRE") regarding the publication by the Ministry of Energy in the Official Gazette of the Federation ("DOF") of the "Emergency Guideline for the well-being of the Liquefied Petroleum Gas Consumer" through which the CRE is invited to develop a specific methodology to set maximum prices to final consumers of LPG. For COFECE, the published Guideline is contradictory to the provisions of the Hydrocarbons Law regarding the regulation of prices due to the absence of a declaration of lack of effective competition conditions previously issued by COFECE. Read more.
AUGUST
COFECE publishes document for the promotion of clean electricity generation.
On August 1, COFECE published the document "Competition as a means to promote the generation of clean electric energy" through which it seeks to highlight the importance of effective competition conditions for the development of clean energy. The Commission's analysis highlights that Mexico will not meet its commitment to clean energy generation by 2021 in the Paris Agreement, among other reasons due to (i) lack of speed in the implementation of a regulatory change in line with the regulatory changes made in Mexico in 2013 and, (ii) recent reforms to the electricity industry, which in turn inhibits the installation and operation of new generation projects. Read more.
COFECE files constitutional controversy against the Advertising Law Decree.
On August 10, 2008, COFECE filed a constitutional controversy against the Decree that issued the Law for the Transparency, Prevention and Combat of Unfair Practices in Advertising Contracting ("Decree") before the Supreme Court of Justice of the Nation ("SCJN"), considering that it contains powers and mandates that are not within the Commission's competence, since they are contrary to the provisions of Articles 14, 16, 28 and 133 of the Mexican Constitution. COFECE considers that the performance of these functions is not necessarily compatible with the powers to prosecute and sanction conducts that would potentially affect the operation of the advertising markets. The controversy filed by COFECE was admitted. However, the SCJN did not grant its suspension. Read more.
COFECE sanctions several economic agents in the drug distribution market.
On August 16, COFECE sanctioned the drug distributors Casa Marzam, Casa Saba, Fármacos Nacionales, Nadro, Almacén de Drogas, as well as the Asociación de Distribuidores de Productos Farmacéuticos de la República Mexicana, in addition to 21 individuals for various absolute monopolistic practices in the drug distribution market. The total fine amounts to approximately 903 million 479 thousand pesos. In addition, COFECE imposed the sanction of disqualification to 10 directors of the sanctioned companies. The above, having found evidence that such economic agents entered into agreements to restrict the supply, fix, manipulate and increase the price of medicines between 2010 and 2016. Read more.
COFECE summons economic agent for possible relative monopolistic practice in the market for the commercialization, storage and transportation of petroleum products in case IO-001-2018.
On August 17, the COFECE summoned an economic agent participating in the market for the commercialization, storage and transportation of petroleum products in Mexico, as well as related services for possibly engaging in anticompetitive practices consisting in the establishment of different prices or conditions of sale or purchase for different sellers or buyers under the same conditions. Thus, the procedure followed in the form of a trial began, through which the economic agent involved may defend itself against the accusations made by the Investigating Authority of the COFECE. Read more.
COFECE publishes report on the Public Consultation of the Preliminary Draft of amendments to the Regulatory Provisions on the use of electronic media before the Commission.
On August 17, the Commission published the Report on the Public Consultation of the Preliminary Draft of Amendments to the Regulatory Provisions on the Use of Electronic Media before the Federal Economic Competition Commission, which was open to the general public for comments from June 30 to July 19.
As a result of this consultation, the Commission received two participations, as well as the opinion of the IFT, of which the following aspects stand out: (i) granting the possibility for SITEC system users to choose which proceedings will be conducted electronically and which will not; (ii) issues regarding the comparison of documents; (iii) the possibility of modifying deadlines due to errors in the system for uploading documents; among others. Read more.
COFECE publishes document "Study of competition in the public freight railroad transportation service".
On August 31, the Commission published the final version of the document ".Study of competition in the public rail freight transportation service", which is the result of the comments generated in the public consultation held last May. In this document, COFECE estimates that competition in the Mexican railway system is very low and that this network operates in a disjointed manner, which in turn causes low efficiency in the services offered in the related markets. Consequently, COFECE made 25 recommendations to legislators and regulators to promote greater competition and efficiency in the sector, which are grouped into three categories: (i) eliminate obstacles to take advantage of existing rights of way and create new ones; (ii) promote interline services to resolve bottlenecks; and (iii) strengthen the design of the Railroad Transportation Regulatory Agency. Read more.
COFECE issues Emergency Regulatory Provisions for Processing Complaints Regarding the Advertising Law.
On August 31, the COFECE published the Emergency Regulatory Provisions for the Processing and Hearing of Complaints on Possible Violations of the Law on Transparency, Prevention and Combating of Undue Practices in Advertising Contracting, through which it seeks to provide legal certainty and security to economic agents in the procedures that COFECE will conduct. Among the relevant aspects are the following: (i) investigations based on the Advertising Law must be initiated by complaint and will be in charge of COFECE's Investigating Authority; (ii) in order for complaints to proceed, the persons filing them must have a legal interest; (iii) the investigations may be carried out in up to 5 periods of 120 working days each; (iv) once the investigation is completed, a proceeding will be followed in the form of a trial and; (v) the Plenary of COFECE will be the competent authority to issue a resolution on the matter. Read more.
SEPTEMBER
Manuel Haro, Head of COFECE's Investigating Authority.
On September 1, the Plenary of the Commission appointed José Manuel Haro Zepeda as the new Head of the Investigating Authority as of this date and for a period of four years. COFECE's Investigating Authority is in charge of handling investigations for monopolistic practices and unlawful concentrations, as well as other special procedures under the LFCE and other laws. Read more.
COFECE clarifies data on votes required for Plenary resolutions.
On September 3, the Commission published a press release in which it clarified that (i) according to the Organic Statute of COFECE, the Plenary sessions are valid with the attendance of at least four commissioners, provided that at least three vote; and (ii) according to the LFCE, the vote of five commissioners is required for the resolutions of procedures to determine barriers to competition and essential inputs, the appointment of the Head of the Investigating Authority and the issuance of Regulatory Provisions. Read more.
Brenda Gisela Hernández Ramírez, Acting Presiding Commissioner due to vacancy of the COFECE Plenary.
On September 10, Commissioner Brenda Gisela Hernández assumed the Presidency of COFECE in substitution due to vacancy of the Plenary. Such transition is a result of the end of the second and last term of Alejandra Palacios Prieto as Presiding Commissioner, who was ratified by the Senate in October 2016. The Alternate Presiding Commissioner mentioned as a priority the realization of an orderly transition and emphasizing the continuity of the Commission's work in favor of competition and adherence to due process. Read more.
COFECE penalizes 17 clubs in the Liga MXto the Mexican Soccer Federation and 8 individuals for colluding in the soccer player transfer market.
On September 23, the Commission imposed fines for a total of 177.6 million pesos to 17 Liga MX soccer clubs for their responsibility in absolute monopolistic practices. Likewise, it sanctioned the Mexican Soccer Federation and 8 individuals for contributing to these practices. The conducts consisted of imposing maximum ceilings on the salaries of female soccer players and segmenting the players' market by establishing a mechanism that prevented them from negotiating freely with new teams (commonly known as "monopolistic practices"). gentleman's agreement). The Mexican Soccer Federation stated in a joint press release with the clubs that they reiterate their commitment to abide by the resolution issued by COFECE. They also stated that they have no intention of contesting the resolution and that they will be held responsible for the sanctions decreed therein. Read more.
The lawyers of the Antitrust area of the Firm are at your disposal to answer any questions regarding the content of this document.
A T T E N T A M E N T,
Amilcar Peredo
Fernanda Garza
León Jiménez
