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11 December 2003
In concentration cases where the Federal Competition Commission has the potential to stop the transaction, the parties involved may propose conditions to address competition concerns. Such offers are also permitted where monopolistic practices are being investigated, in order to seek the early termination of the investigation. When conditions are proposed, the commission must review the proposals, approving the notified transaction or closing its investigation if the conditions can resolve competition concerns.
The commission may block a concentration or approve it subject to certain conditions if the concentration will:
In these cases applicants have the right to propose conditions. Generally, conditions are acceptable if they directly address competition concerns and are proportionate to the intended correction. They can usually be proposed any time prior to the resolution of the concentration notice or of the first administrative appeal against a negative resolution.
A party that is subject to a monopolistic practices investigation may file a petition proposing conditions designed to suspend, eliminate or correct the presumed monopolistic practice at any time prior to resolution. Upon petition, the investigation process is suspended and the commission has 15 working days to analyze the proposals. The conditions must:
Conditions the commission may consider include directing the parties to:
In practice, other conditions are also considered. In most cases the divestiture of assets, brands or production lines is considered an appropriate measure, especially where the competition concern relates to a high market share resulting from a concentration. Combinations of the conditions are also common.
For further information on this topic please contact Daniel Kuri-Breña at Kuri Breña, Sánchez Ugarte, Corcuera y Aznar by telephone (+52 55 5292 5930) or by fax (+52 55 5292 5928) or by email (email@example.com).
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Daniel Kuri Breña