In February 2015 the Federal Economic Competition Commission (FECC) initiated an investigation to determine whether essential inputs or barriers to competition existed in the air transport services market at Mexico City International Airport. The FECC recently issued its findings from the investigation and proposed several corrective measures. However, certain of these proposed measures raise significant concerns.
The Federal Economic Competition Commission recently issued a number of recommendations regarding first-hand contracts for the supply and franchise of gasoline and diesel. Although the recommendations are non-binding, they are intended to incentivise competition in the gasoline and diesel supply, sale and delivery markets, generating better conditions for customers and paving the way for the permanent liberation of the markets in 2018.
Following a public consultation, the Federal Economic Competition Commission (FECC) recently issued guidelines on the exchange of information between economic agents. The guidelines aim to clarify the elements that the FECC will consider when evaluating information exchanges and allow economic agents to determine with greater certainty whether their exchanges of information are permissible.
Following an investigation of the pay television market in 2,124 municipalities across Mexico, the plenum of the Federal Telecommunications Institute has ruled that Televisa is not a dominant agent in any of the relevant markets. However, the resolution – adopted with two of the seven commissioners dissenting – has generated much controversy among industry participants and academics.
Since transportation network companies such as Uber and Cabify began operating in Mexico City, much controversy has arisen regarding their regulation. In response, the Mexico City government has issued a new regulation governing how such companies provide their services. However, it may impose unnecessary limitations which could hinder competition between taxis and these companies.
The Federal Economic Competition Commission has approved a merger on the condition that the acquiring company abstain from requesting anti-dumping proceedings and provide no assistance or information within the framework of an anti-dumping investigation in the relevant market for 10 years. It is worth examining whether such measures were justified and strictly necessary.
The Federal Economic Competition Commission (FECC) recently published new technical criteria for the estimation and application of a quantitative index to measure market concentration. The technical criteria were issued after a public consultation and reflect the accumulated experience of the FECC and international best practices.
The Federal Economic Competition Commission recently initiated an investigation into the market for air transport services relating to landing and take-off slots at Mexico City International Airport. The purpose of the investigation is to determine the existence of alleged barriers to competition or essential inputs with potential anti-competitive effects.
The Federal Economic Competition Commission recently released its Strategic Work Plan 2015. The plan addresses one of the main issues facing antitrust regulation in Mexico: collaborations among competitors. It specifically commits to drafting, submitting to public consultation and ultimately issuing guidelines setting out the commission's criteria for assessing collaborations among competitors.
Earlier in 2014 several laws were enacted or modified in order to address the new legal energy framework introduced by the 2013 constitutional reform. As a consequence of the reform, the Federal Economic Competition Commission is expected to have a more active role in the energy sector, in order to ensure that private parties can compete fairly with the state-owned operators.
The new Federal Telecommunications and Broadcasting Law recently entered into force, introducing significant changes in relation to competition in the telecoms and broadcasting sectors. The new law recognises the Federal Telecommunications Institute as the authority governing competition in these sectors, with significant investigative and enforcement powers.
The new Federal Law on Economic Competition will soon enter into force. The new competition framework maintains the traditional faculties of any competition authority, but also grants important incremental powers and introduces new procedures and penalties, which will lead to additional regulatory costs and risks for regulated agents. Companies should thus take appropriate measures to avoid violations of the new framework.
The newly created Federal Economic Competition Commission (FECC) recently issued its strategic plan for 2014 to 2017, in which the FECC's commissioners and principal officers established the entity's mission, vision, values, objectives and strategic lines of investigation. The FECC considers that there are major competition-related challenges to resolve, specifically targeting several sectors.
After a fast legislative process, major reform to the constitutional framework for energy activities will soon become effective. These activities can now be carried out by private parties, including foreign investors. The reform will accordingly have a significant impact on competition matters, as the regulatory entry barriers to this sector have been eliminated to some extent.
After a two-month transition period, the new Federal Economic Competition Commission has resolved two major appeal proceedings inherited from the former competition agency that outline its revision criteria for future cases. The proceedings concerned the Sherwin Williams/Comex merger and the Cinemex/Cinemark merger.
Recent constitutional amendments provide for the creation of two new entities tasked with monitoring competition concerns – the Federal Economic Competition Commission (FECC) and the Federal Telecommunications Institute (FTI), both to be governed by seven commissioners. The Senate recently ratified six of the seven FECC commissioner candidates chosen by the president and all seven of his chosen FTI commissioner candidates.
Congress recently enacted amendments to the the competition regulatory framework in Mexico, which substantially overhaul the institutional structure of the Federal Competition Commission. Several significant modifications to the original proposals were made before passage. However, the future of proceedings pending before the commission is uncertain, due to unclear wording in the amendments.
A legislative proposal to amend the financial regulatory framework in Mexico was recently submitted to Congress. The amendment would have significant effects on competition policy in the financial sector; among other things, it provides for the Federal Competition Commission to monitor the sector and evaluate its competition conditions with the aim of making recommendations to financial authorities.
A proposal was recently submitted to Congress that provides for major changes to the institutional structure of the Federal Competition Commission. Among other things, the proposal calls for the creation of a new commission as a constitutional and autonomous entity, with new enforcement powers and operational guidelines. However, there is concern that the proposed amendments could bring considerable complications.
In 2010 the Federal Competition Commission (FCC) commenced an investigation concerning allegations of relative monopolistic practices – specifically, denial of service and discrimination – in the provision of both airport and complementary services and slot allocation by Mexico City International Airport. However, the FCC recently issued a resolution closing the case due to lack of sufficient evidence.