December 2024
Frontpage
Anticompetitive conducts
Recommended reading
FRONTPAGE
Cofece opens investigation into live entertainment event markets
Cofece opens investigation into live entertainment event markets
The Investigative Authority (IA) of the Federal Economic Competition Commission (Cofece) initiated an investigation into the live entertainment market, since it has elements suggesting that there are no competition conditions in the markets of: production and promotion of events, operation, and administration of venues, distribution and commercialization of tickets at national level, and services related to these activities.
These investigations seek to identify whether there are barriers to competition due to the behavior of the companies (behavioral), because of legal provisions or acts of the authorities (regulatory), or due to the structure of the markets (structural). The IA carries out these procedures when it identifies problems in the markets that hinder the capacity of new participants to enter the markets, harm consumers, discourage investment, or in any way affect the healthy dynamics of the competitive processes.
ANTICOMPETITIVE CONDUCTS
Cofece fines Walmart and orders it to eliminate abusive practices against its suppliers
The Board of Commissioners from Cofece determined that Walmart engaged in illegal conducts in the supply and distribution of food, beverages, and household hygiene and cleaning products in Mexico during 13 years, by imposing abusive purchasing conditions on its suppliers, prohibiting them from offering prices equally low to its competitors and, in addition, when this occurred, applying discretionary retaliatory measures.
This did not always result in better prices for consumers at Walmart stores and harmed other self-service stores.
Therefore, Cofece fined Walmart, ordered it to cease these illegal conducts, and imposed a series of measures, carefully designed so that Walmart can continue to negotiate freely and competitively with its suppliers, without granting it illegal advantages over other self-service stores. Thus, the resolution seeks to guarantee that all self-service stores can negotiate freely with any supplier and that supermarkets can offer low prices to Mexican families.
The Board of Commissioners from Cofece determined that Walmart engaged in illegal conducts in the supply and distribution of food, beverages, and household hygiene and cleaning products in Mexico during 13 years, by imposing abusive purchasing conditions on its suppliers, prohibiting them from offering prices equally low to its competitors and, in addition, when this occurred, applying discretionary retaliatory measures.
This did not always result in better prices for consumers at Walmart stores and harmed other self-service stores.
Therefore, Cofece fined Walmart, ordered it to cease these illegal conducts, and imposed a series of measures, carefully designed so that Walmart can continue to negotiate freely and competitively with its suppliers, without granting it illegal advantages over other self-service stores. Thus, the resolution seeks to guarantee that all self-service stores can negotiate freely with any supplier and that supermarkets can offer low prices to Mexican families.
Cofece finds evidence of probable collusive agreements in radiological material sales to the government
The IA of Cofece formally accused several companies and individuals of allegedly manipulating public tenders for radiology material in the health sector.
The accused were notified with a statement of probable responsibility, which will initiate a trial-like procedure where the probable responsible parties will have the opportunity to present evidence and arguments, they deem necessary for their defense. Once this stage is concluded, the Board of Commissioners of Cofece will analyze all the information and evidence presented to finally determine if the accused’s liability is proven and, if so, will apply the corresponding sanctions
The IA of Cofece formally accused several companies and individuals of allegedly manipulating public tenders for radiology material in the health sector.
The accused were notified with a statement of probable responsibility, which will initiate a trial-like procedure where the probable responsible parties will have the opportunity to present evidence and arguments, they deem necessary for their defense. Once this stage is concluded, the Board of Commissioners of Cofece will analyze all the information and evidence presented to finally determine if the accused’s liability is proven and, if so, will apply the corresponding sanctions
RECOMMENDED READING
Artificial intelligence and economic competition in the digital environment.
The paper addresses how artificial intelligence (AI) impacts economic competition in the digital environment. It explains the benefits of AI, such as innovation and efficiency, along with risks such as algorithmic collusion and discrimination. On the other hand, it analyzes regulatory proposals to mitigate the challenges and maintain a balance between regulation and innovation.
This booklet's objective is to show the most relevant aspects of AI related to the digital economy that impact the conditions of economic competition in favor of or against users.
BY THE NUMBERS
BY THE NUMBERS
During December, the Commission dealt with 125 matters, of which 71 correspond to mergers, 29 to proceedings for monopolistic practices and unlawful mergers, 5 to special proceedings, and 20 to opinions on bidding processes, concessions, and permits.
Complaints, investigations, and trial-like proceedings
- 4 complaints were analyzed, of which 2 were received during the period. Of these, 3 were discharged and 1 was suitable to start an investigation, so at the end of the month 1 complaint was still under analysis.
- 19 investigations for monopolistic practices and unlawful mergers were followed-up.
- 6 trial-like proceedings were followed up one of which initiated during the period.
- 1 trial-like proceeding concluded with a sanction of Walmart for illegal conduct in the supply and distribution of food, beverages, and hygiene and cleaning products.
- 4 special procedures were followed up to determine the existence of essential facilities and barriers to competition
Mergers
- 71 mergers were monitored, of which 16 were notified during the period. Of these transactions, 24 were authorized, accordingly, 47 remained under analysis at the end of the month.1
- The amount of authorized transactions was $360,423.7 million pesos.
Amparo trials
- During December, the Judicial Power resolved 9 amparo trials: 1 was granted, 5 were denied and 3 were dismissed.2 At the end of the period, 378 trials are still in process, of which 348 correspond to economic competition matters.
1. The file numbers of the authorized concentrations are: CNT-065-2024 (Glas Trust Corporation Limited / Amundi Limited / Amundi Asset Management US, Inc.), CNT-072-2024 (Banco de Sabadell, S.A. / Banco Bilbao Vizcaya Argentaria, S.A. ), CNT-078-2024 (Artha Capital / AC2 Mexico MM Investor LLC / individuals), CNT-080-2024 (Neoen ENR Mexico, S.A. de C.V. / Brookfield Renewable Holdings SAS), CNT-085-2024 (Banco Invex, S.A., Institución de Banca Multiple, Invex Grupo Financiero / Aleatica, S.A.B. de C.V.), CNT-089-2024 (Luxshare Precision Singapore Pte. Ltd. / Luxshare Precision Limited / Bose Export, Inc. / Bose Corporation), CNT-090-2024 (Kuo, S.A.B. de C.V. / Fras-Le North America, Inc. / Desc Corporativo, S.A. de C.V. / Inmobiliaria Corcel, S.A. de C.V. / Fras-Le Mexico, S. de R.L. de C.V. / Dacomsa, S.A. de C.V.), CNT-094-2024 (Mro Investment, Inc. / Bain Capital Credit, LP / Airline International, S.A.), CNT-100-2024, CNT-106-2024 (Industrial Aceitera, S. A. de C.V. / Industrial Aceitera, S. A. de C. V. / Dacomsa, S.A. de C.V.), CNT-094-2024 (Mro Investment, Inc. A. de C.V. / Grupo Trimex, S.A. de C.V. / individuals), CNT-109-2024 (Multi-Color Uk Holdings 2 Limited / Multi-Color Corporation / Im-Promocion, S.A. de C.V.), CNT-112-2024 (Frep Holdings Canada I LP / Conquer MC1, S.A.P.I. de C.V. / Bamr I GP, Inc. ), CNT-113-2024 (RLH Properties, S.A.B. de C.V. / Islas de Mayakoba, S.A. de C.V. / Hyatt Of Baja, S. de R.L. de C.V. / Gafapa, S.A. de C.V. / Administradora de Proyectos Hoteleros, S.C.), CNT-114-2024 (Walton Street Mexico Fondo IV F / 5740 / Walton Street Managers IV, S. de R.L. de C.V. / Walton Street Capital, LLC / Fraccionadora Residencial Hacienda Agua Caliente, S. de R.L. de C.V. / persona física), CNT-117-2024 (Veritiv Corporation / Agal Holdings Pty Limited / Orora Limited), CNT-119-2024 (Sysco Global Holdings, B. V. / PFS de Mexico, S.A.P.I. de C.V. / Grupo Prestige Worldwide, S.A.), CNT-121-2024, CNT-122-2024 (Soluciones Financieras Internacionales, S.A. de C.V. Sofom E.N.R. / Grupo Trimex, S.A. de C.V. / Chapa Quiroga, S.P.R. de R.L.), CNT-123-2024 (CP VIII Spruce GP S.A R.L. / CP Spruce Holdings, S.C.SP / Baxter International Inc.), CNT-124-2024 (Ocelot Transaction Corporation / Gatos Silver, Inc. / First Majestic Silver Corp. ), CNT-126-2024 (Schenker Aktiengesellschaft / DSV A/S / Deutsche Bahn Aktiengesellschaft), CNT-132-2024 (Levantur, S.A. / Zurich Hotel Investments B.V. / ), CNT-135-2024 (Grupo Industrial Emprex, S. de R.L. de C.V. / Femsa Empaques, S.A. de C.V. / AMMI America, S. de R.L. de C.V.) and CNT-136-2024.
2. Of which it is reported that the jurisdictional body that finally resolved and the file numbers of the dismissed amparo suits are: Second Collegiate Circuit Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction over the entire Republic, R.A. 271/2024; First Collegiate Circuit Court in Administrative Matters, Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction over the entire Republic, R.A. 147/2023, and Fourth Collegiate Circuit Court of the Auxiliary Center of the First Region, with residence in Mexico City R.A. 779/2023; of the amparo trial granted is: Second Collegiate Circuit Court in Administrative Matters, Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 126/2022 and of the amparo trials denied are: Second Collegiate Circuit Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 165/2024; Second Collegiate Circuit Court in Administrative Matters, Specializing in Economic Competition, Broadcasting and Telecommunications, with Residence in Mexico City and Jurisdiction throughout the Republic, R.A. 255/2022; Second Collegiate Court in Administrative Matters, Specializing in Economic Competition, Broadcasting and Telecommunications, with Residence in Mexico City and Jurisdiction throughout the Republic, R.A. 533/2022; First Collegiate Court in Administrative Matters, Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, R.A. 403/2023, and First District Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, Exp. 296/2023.
Reporte Mensual – Septiembre 2025
Monthly report – January 2025 of the Federal Economic Competition Commission (Cofece) initiated an investigation ...){kind=link}