In January 2019 the new government implemented several measures to counter and reduce gasoline and diesel theft, which generated fuel shortages in some of Mexico's main cities. To address these issues, the Federal Economic Competition Commission recently issued a follow-up to its 2016 recommendations which aimed to foster competition in the gasoline and diesel markets in order to address the new administration's concerns.
In 2017 the Federal Economic Competition Commission initiated an investigation into an unlawful concentration between Marzam – a major pharmaceutical product distributor in Mexico – and its main competitor, which had come to light following the release of the Panama Papers. However, before the investigation concluded, Moench Coöperatif (which had acquired control over Marzam) and one of its shareholders proposed a series of commitments in order to restore free competition in the pharmaceutical market.
In 2018 the Federal Economic Competition Commission (FECC) and the Federal Institute of Telecommunications (IFT) celebrated their 25th anniversary. Both authorities have made good progress in carrying out their various functions throughout the years and have been recognised globally for their positive effect on the country's economy. However, it will be interesting to see how the US-Mexico-Canada Agreement contributes to Mexican competition policy once implemented by the FECC and the IFT.
The Federal Competition Commission (FECC) recently issued its Competition Agenda for Public Procurement, in which it presented its findings regarding competition issues that can arise during the public procurement process. In the agenda, the FECC also proposed certain courses of action (both administrative and legislative) to promote effective competition in public procurement.
After two years of litigation, the First Collegiate Tribunal on Administrative Matters Specialised in Economic Competition, Broadcasting and Telecommunications has finally issued a final ruling acknowledging that the Federal Economic Competition Commission breached the attorney-client privilege principle during a dawn raid. The tribunal's ruling is relevant, as it demonstrates the possible outcomes of a violation of attorney-client privilege by the antitrust authorities.
The Federal Economic Competition Commission (FECC) recently issued its Annual Working Plan. In it, the FECC recognised that one of its strategic goals is to communicate to economic agents how anti-competitive practices will be investigated and which actions agents may adopt to prevent potential risks. In particular, the FECC declared that one of its goals for 2017 would be to launch a project to develop guidelines for the analysis of collaboration agreements between competitors.
Corn tortillas are a fundamental source of nutrition for Mexican families, and artificial price increases have a significant effect on the consumer economy. Given the importance of the corn tortilla market, it has come under the scrutiny of several authorities – for example, the Federal Economic Competition Commission, which recently fined three individuals a total of Ps394,508 for the commission of an absolute monopolistic practice in the market for the production, distribution and marketing of corn tortillas.
The Federal Economic Competition Commission (FECC) recently released a study on competition in the expired patent drug market, in which it analysed the level of competition in various drug markets following the expiry of an original drug's patent. According to the FECC, several obstacles to competition exist, which ultimately discourage possible new competitors from developing generic versions of drugs and entering the market.
The Specialised Competition Court recently annulled the Federal Economic Competition Commission's decision to revoke immunity granted during an antitrust procedure. The court's decision is relevant, as it sets the criteria for determining to what extent an economic agent can challenge the application of law in a specific case.
The Federal Economic Competition Commission (FECC) investigative authority recently published a press release stating that it had, for the first time, requested the attorney general to initiate criminal action against persons involved in absolute monopolistic practices. This case constitutes an important landmark in Mexico's promotion of competition; the FECC and the attorney general will work closely to set a precedent that will safeguard the credibility of criminal penalties.
The Federal Economic Competition Commission recently issued its Annual Work Programme. The programme's initiatives largely focus on sectors of strategic importance to Mexico's economic and social interests and should encourage economic agents participating in these sectors to avoid monopolistic practices that may harm, impede or restrict competition.
The First Collegiate Tribunal on Administrative Matters Specialised in Economic Competition, Broadcasting and Telecommunications recently ordered the admission of a trial against the Federal Economic Competition Commission, whose representatives had obtained confidential documents protected by attorney-client privilege during a dawn raid. This is a landmark judgment, as it recognises attorney-client privilege and the attorney-client work product doctrine in an antitrust context for the first time.
Shortly after its establishment, the Federal Economic Competition Commission (FECC) sought feedback on where it should focus its attention in regards to enhancing competition. The results indicated that the pharmaceutical sector should be a priority, particularly regarding the sale of medicines to public health institutions and these institutions' IP rights. As such, in 2016 the FECC launched a series of activities relating to the pharmaceutical sector.
The Federal Economic Competition Commission (FECC) recently revoked immunity granted to an undertaking involved in anti-competitive practice on the grounds that it had failed to fulfil its obligation to cooperate fully in all phases of the investigation. This is the first time that the FECC has revoked immunity and therefore sets an important precedent for undertakings that successfully receive immunity under the leniency programme.
As a result of the 2013 constitutional energy amendment, parties outside the Mexican Petroleum franchise model can now sell gasoline and diesel. Further, gasoline and diesel prices will be liberalised after December 2017. In light of this, the Mexican Federal Economic Competition Commission has issued a series of recommendations to foster competition in the market, taking into account legislative concerns and the market's performance.
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.