The antitrust authority has initiated three investigations for potential violations of the Federal Economic Competition Law (FECL) in petroleum markets.

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The Federal Economic Competition Commission (FECC) made public today that it has initiated three investigations in petroleum markets after finding indications of probable conduct or conditions that may violate the FECL. Such investigations were published in the Federal Official Gazette and are identified as follows:

1. a) Investigation DE-009-2019On the probable carrying out of absolute monopolistic practices (cartel conduct) in the market for the retail sale of gasoline and diesel at gas stations in Mexico.
2. b) Investigation IO-001-2019On the probable carrying out of an illicit concentration (merger or acquisition) in the market for the marketing and distribution of gasoline and diesel, as well as the sale of these in gas stations in Mexico.
3. c) Investigation IEBC-002-2019On the probable existence of barriers to competition and essential raw materials in the national market for aircraft fuel which includes production, importing, storage, transportation, distribution, marketing, selling, and other related services.

In any such investigations, the FECC may request, from economic agents that participate or are related to the investigated markets, that information in writing or statements be provided, or it may carry out inspections. In such cases, the FECL sets out the obligation for economic agents to cooperate with the FECC and provide it with requested information.

On the other hand, the publication of such investigations is for the purpose of providing any economic agent that may have an interest in the matter with the opportunity of contributing and providing any information it deems appropriate with relation to the investigated conduct or the circumstances which may violate the FECL. Any person or company, therefore, that considers that it may have been prejudiced in the investigated markets will have the opportunity to provide its view to the FECC.

The three investigations are independent among themselves. If there are grounds to presume a violation of the FECL, the economic agents responsible will be summoned to present their defense in a proceeding similar to a trial.

The Competition and Antitrust Practise of the firm will be pleased to provide any additional information on the topic.

SINCERELY,

Amilcar Peredo

peredo@basham.com.mx

Fernanda Garza

fgarza@basham.com.mx

León Jiménez

ljimenez@basham.com.mx

Carmina Paredes

cparedes@basham.com.mx

Mexico City, October 31, 2019