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COFECE initiates an investigation for the possible commission of absolute monopolistic practices in the market for services related to credit card transactions in the form of deferred payments with interest-free months.

Mexico City, Mexico, November 1, 2022

The Federal Economic Competition Commission ("COFECE"), published on October 27, 2022, the initiation of the investigation IO-002-2022 for the possible commission of absolute monopolistic practices in the market for services related to credit card transactions (TDC) in the form of deferred payments in months without interest (MSI) in Mexico.

Regarding this investigation, COFECE explained that a TDC is a product that a financial institution offers to a user called cardholder, through which he/she can make payments for products and services using a line of credit. Payments for such purchases can be made on the next cut-off date of the TDC, or payments can be deferred to MSI (usually 6, 12, 18 or 24 months). Likewise, in order to carry out such transactions, there must be payment systems that allow it, physical stores with point-of-sale or virtual terminals that offer the option of making purchases under this modality, financial institutions that offer credit lines and an associated card, payment clearing and settlement services, among others that make MSI purchases possible. This market is important because it represented 5% of the country's Gross Domestic Product in 2022.

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 such 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 conduct under investigation or circumstances that may be contrary to the LFCE. Likewise, those who have participated in such conduct may avail themselves of the benefits of the Immunity and Reduction of Sanctions Program. Therefore, any person or company that considers that it has an impact on the market under investigation will have the opportunity to state it before the COFECE.