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Cofece submits to the Executive and Legislative Powers its First Quarterly Report of Activities 2022

Cofece submits to the Executive and Legislative Powers its First Quarterly Report of Activities 2022

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In accordance with its responsibilities on matters of transparency and accountability, the Federal Economic Competition Commission (Cofece or Commission) submitted its First Quarterly Report of Activities 2022 (Report) to the Executive and Legislative Powers. The Report presents the actions that contributed to the achievement of the institutional objectives, and shows the commitment to ensure the efficiency of the markets for the benefit of consumers.

Among the issues highlighted in the Report are:

  • The analysis of 85 concentrations, of which 44 were authorized, four had an administrative closure and 37 remain under review within the timeframes set by the Federal Economic Competition Law; likewise, work was carried out on 10 opinions for tenders, concessions and permits.
  • The fine of 848 million 888 thousand 633 Mexican pesos imposed on the Mexico City International Airport (AICM) for refusal to deal, through which it prevented an economic agent to provide the federal land transport service of passengers with the AICM as destination or origin.
  • The issuance of several opinions, most notably the one made to the Initiative with a Draft Decree on energy matters, as well as the recommendations to favor taxi and bus users at the Felipe Angeles International Airport.
  • The launch of activities that promote the application of competition principles and their benefits among public, social and private actors.
  • The 2022-2025 Strategic Plan that constitutes the long-term planning instrument in which the institutional objectives and strategic lines that will guide the fulfillment of the constitutional mandate of Cofece during the following four years are reflected.
  • The publication of the Annual Work Programme 2022 (PAT, per its initials in Spanish), that contains 13 strategic actions that will contribute to the achievement of institutional objectives.

The First Quarterly Report of Activities of Cofece is made public in compliance with article 28 of the Political Constitution of the Mexican United States and Articles 12, section XXV, 18 and 49 of the Federal Economic Competition Law.

APPOINTMENTS

Cofece announces that Mario Fócil Ortega was appointed as Director General of Administration.

He holds a Bachelor’s degree in Political Science and Public Administration, with a Masters’ degree in Economics and Government, and doctoral studies in Public Administration; he holds an Executive Certificate in Management and Leadership, from the Sloan School of Management of the Massachusetts Institute of Technology.

He has more than 30 years of experience in organizational development, talent management and administration of public resources. He has held various managerial positions in the public sector, at the Ministries of Economy, Environment and Natural Resources, Energy, Tourism, Foreign Affairs, and Agriculture and Hydraulic Resources, as well at the Federal Electricity Commission, the Institute for the Protection of Banking Savings, the Federal Telecommunications Institute and the Federal Administrative Justice Tribunal. In the civil society, he served as Director of Administration and Finances at the Mexican Center for Philanthropy.

Since April 1, 2022, he serves as Director General of Administration of the Federal Economic Competition Commission

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He holds a Bachelor’s degree in Political Science and Public Administration, with a Masters’ degree in Economics and Government, and doctoral studies in Public Administration; he holds an Executive Certificate in Management and Leadership, from the Sloan School of Management of the Massachusetts Institute of Technology.

He has more than 30 years of experience in organizational development, talent management and administration of public resources. He has held various managerial positions in the public sector, at the Ministries of Economy, Environment and Natural Resources, Energy, Tourism, Foreign Affairs, and Agriculture and Hydraulic Resources, as well at the Federal Electricity Commission, the Institute for the Protection of Banking Savings, the Federal Telecommunications Institute and the Federal Administrative Justice Tribunal. In the civil society, he served as Director of Administration and Finances at the Mexican Center for Philanthropy.

Since April 1, 2022, he serves as Director General of Administration of the Federal Economic Competition Commission

AWARDS

Cofece was awarded at the Antitrust Writing Awards 2022, for the document A converging competition agenda for the prosperity of Mexico and the United States

Cofece was declared a winner of the Antitrust Writing Awards 2022 in the category of Best Soft Law Cross-border Issues , for the document A converging competition agenda for the prosperity of Mexico and the United States, published in September 2021.

The document recounts the main recommendations of Cofece to promote competition in priority markets of the Mexican economy, coinciding with the Executive Order, published by the President of the United States of America in July 2021, to address the lack of competition in the American economy.

For the Commission, it is an honor to receive this award from the Institute of Competition Law, which reaffirms our commitment for the benefit of Mexican families.

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Cofece was declared a winner of the Antitrust Writing Awards 2022 in the category of Best Soft Law Cross-border Issues , for the document A converging competition agenda for the prosperity of Mexico and the United States, published in September 2021.

The document recounts the main recommendations of Cofece to promote competition in priority markets of the Mexican economy, coinciding with the Executive Order, published by the President of the United States of America in July 2021, to address the lack of competition in the American economy.

For the Commission, it is an honor to receive this award from the Institute of Competition Law, which reaffirms our commitment for the benefit of Mexican families.

RECOMMENDED READING

2021 Concentrations Report

For the fourth consecutive year, the Commission publishes this report as a part of an institutional effort of accountability and to inform on the activities and decisions related to the analysis of the 165 concentrations notified during 2021. Among other aspects, this document addresses the numbers of processed matters and the sense in which they were resolved; the economic sectors in which the transactions occurred; its monetary value and its effects on the markets; the timeframe that the regulation grants Cofece to resolve the matters and the efforts made to decrease said times; as well as the descriptions of the most relevant matters processed in 2021.

BY THE NUMBERS
BY THE NUMBERS

In April, the Commission handled 96 issues, of which 50 correspond to concentrations, 30 to procedures for monopolistic practices and prohibited concentrations, 4 are related to special procedures1 and 12 are opinions on tender processes, concessions or permits.

Complaints, investigations and trial-like procedures

  • Follow-up was made to 6 complaints for anticompetitive conducts, 5 are still under analysis and 1 was transferred to the IFT.
  • 20 investigations of monopolistic practices were followed-up, all of which are ongoing.
  • Progress is being made in 4 trial-like procedures, which are still being processed.
  • 3 procedures for barriers to competition are being analyzed, which are stil in process
  • 1 case to declare competition conditions is still in process.

Concentrations

  • 50 concentrations were reviewed, of which 7 were authorized2, the remaining 43 are still under analysis.
  • The amount of the authorized operations is of 20,850.81 million Mexican pesos.

Opinions

  • Within the framework of the COFECE-Cofemer agreement, no opinion was issued3.

Amparo trials

  • There are 443 accumulated indirect amparo trials in process, of which344 correspond to matters of economic competition. In3, the amparo wasgranted.
1.-Special procedures correspond to files for essential facilities and barriers to competition, and to the resolutions on effective competition conditions.
2.- CNT-104-2021; CNT-012-2022 POQUIFIN, S.A. DE C.V. / PROBIOMED, S.A. DE C.V. / SANFER FARMA, S.A.P.I. DE C.V. / PERSONA FISICA; CNT-029-2022, BANCO INVEX, SOCIEDAD ANONIMA INSTITUCION DE BANCA MULTIPLE, INVEX GRUPO FINANCIERO / ESTRATEGIAS PARA EL CRECIMIENTO ECONÓMICO, S.C; CNT-032-2022, INTERMEX CONSTRUCCION, S.A. DE C.V. / WALTON STREET MEXICO MANAGERS III, S. DE R.L. DE C.V; CNT-036-2022, AZTECA HOLDINGS, S. DE R.L. DE C.V. / BC MEXICO VENTURES, LP / CPGH MLP, S. DE R.L. DE C.V; CNT-038-2022, ALLGAIER WERKW GMBH / ALPHA APOLLON LTD. / FRONTIER FAYE LIMITED / LAN CAPITAL LTD. / PERSONAS FÍSICAS y CNT-048-2022, CD&R ASSOCIATES VIII, LTD. / CD&R INVESTMENT ASSOCIATES X, LTD. / CORNERSTONE BUILDING BRANDS, INC.
3.- As of April 18, 2022, the Agreement Cofece-Conamer was terminated in accordance with clause Eight thereof.