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Competition in your State: Jalisco

Competition in your State: Jalisco

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Within the framework of the promotion strategy "Competition in your State" and the agreement signed last June between Cofece and the Government of the State of Jalisco, the Commission carried out a work tour on August 29 and 30 in the city of Guadalajara, with the purpose of implementing working tables and following up on the points agreed upon in the agreement. The main objective of the visit was to manage and make use of the collaboration networks that emerged with the private, public, and academic sectors to disseminate the principles of economic competition and the importance of adopting these to contribute to the welfare of the population.

In this sense, during the first day of the tour, public officials of the Commission held meetings with the Ministry of Economic Development of the State, to discuss issues of real estate agent certifications and public procurement. Subsequently, the staff of the Commission conducted a workshop on "Economic Competition in Digital Markets" for businessmen and public officials in the TecHub initiative, a signature public policy of the government of the State of Jalisco.

On the second day of the tour, the Chairwoman, Andrea Marván Saltiel, participated in a press conference at the University of Guadalajara and later gave a lecture entitled “Evolution and Challenges of Competition Policy in Mexico” to students, teachers and researchers of the University Center of Economic and Administrative Sciences of said University.

The Chairwoman also gave a lecture entitled “Importance of compliance programs within the framework of the Federal Economic Competition Law”  to businessmen members of the Jalisco Employers’ Confederation of the Mexican Republic, with the purpose of inviting small and medium-sized businessmen to have instruments of compliance with the Federal Economic Competition Law (LFCE, per its initials in Spanish) that allow them to identify infringements to it at early stages and to know what tools are available to the Commission to correct them.

Finally, public officials of the Commission gave lectures on concentration and compliance with the LFCE to members of the National Association of Corporate Lawyers (ANADE, per its initials in Spanish), with the purpose of promoting the adoption of measures so that companies benefit from the dynamics generated in the markets as a result of competition among them.

COMPETITION ADVOCACY

The Cofece Challenge, first edition

In the context of its tenth anniversary, the Federal Economic Competition Commission (Cofece) launched the call to participate in the Cofece Challenge 2023 with the objective of benefiting from collective creativity through proposals for technological solutions that contribute to position economic competition in the public agenda, make information on the main actions of the Commission more accessible and offer economic agents tools for the compliance of their obligations established in the LFCE.

This call is aimed at students and professionals from various disciplines such as law, economics, political science, computer science, computer systems, programming, biotechnology, informatics, and others related to the work of the Commission, forming teams of a minimum of two, maximum of five members. The winning proposals will be announced on October 31.

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In the context of its tenth anniversary, the Federal Economic Competition Commission (Cofece) launched the call to participate in the Cofece Challenge 2023 with the objective of benefiting from collective creativity through proposals for technological solutions that contribute to position economic competition in the public agenda, make information on the main actions of the Commission more accessible and offer economic agents tools for the compliance of their obligations established in the LFCE.

This call is aimed at students and professionals from various disciplines such as law, economics, political science, computer science, computer systems, programming, biotechnology, informatics, and others related to the work of the Commission, forming teams of a minimum of two, maximum of five members. The winning proposals will be announced on October 31.

RECOMMENDED READING

Concentrations Report 2022

For the fifth consecutive year, the Commission publishes this report as part of an institutional effort to be accountable and inform about the activities and decisions related to the analysis of the 168 concentrations notified to the Commission during 2022.

The analysis of concentrations is relevant because the dynamics of competition in a market depend, at least in part, on the existence of several suppliers of substitute products or services. The presence of different competitors motivates each of them to look for ways to increase their sales by offering a better option in terms of quality and price than their counterparts in the market. When two or more competitors are concentrated, the total number of suppliers is reduced, and this can have different effects on the competitive process.

BY THE NUMBERS
BY THE NUMBERS

In August, the Commission handled 86 matters, of which 41 correspond to concentrations, 31 to procedures for monopolistic practices and unlawful concentrations, 5 to special procedures, and 9 to opinions on bidding processes, concessions, or permits.

Complaints, investigations, and trial-like procedures

  • 2 complaints were received for anticompetitive conducts, which were added to 4 pending from the previous period. Of these, 2 were dismissed and 2 were deemed as not presented; so, at the end of the period, 2 complaints are still under analysis.
  • 1 investigation for monopolistic practices was initiated, which was added to the 18 pending at the beginning of the period.
  • 6 trial-like procedures were handled. 1 procedure concluded with the closure of the file; so 5 matters remain pending at the end of the period.
  • The economic agents responsible for monopolistic practices in the market of equipment for the use of industrial gases were sanctioned.
  • Follow-up was made on 4 procedures to determine the existence of essential facilities and barriers to competition, and 1 procedure to resolve market conditions.

Concentrations

  • 41 concentrations were reviewed, of which 17 were initiated during the period. Of these, 9 were authorized; so, at the end of the period, 32 concentrations are still under analysis.1
  • The amount of authorized operations is 12,423 million pesos.

Amparo trials

  • During August, the Judicial Power resolved 9 amparo trials: 4 were granted, and 5 were dismissed.2 At the end of the period, 448 trials are still in process, of which 394 correspond to economic competition matters.
1. The files of the authorized concentrations are: CNT-123-2022 (Parques American Industries, S.A. de C.V. / Controladora Idea, S.A.P.I. de C.V. / CIBanco, S.A. institución de banca múltiple), CNT-023-2023 (Klar Holdings Limited), CNT-044-2023 (Megamotors Nippon, S. de R.L. de C.V. / Inversiones Grupo Tampico, S.A. de C.V. / GT Motors Korea, S.A. de C.V. / GT Miramar, S.A. de C.V. / GT Materials, S.A. de C.V. / Grupo Cleber, S.A. de C.V.), CNT-060-2023 (Inmobiliaria Valiant, S. de R.L. de C.V. / Hoteles Vallarta 205, S. de R.L. de C.V. / BCM Alojica Fund 1, LP), CNT-061-2023, CNT-063-2023 (Viessmann Group GmbH & Co. / Carrier Global Corporation), CNT-065-2023 (Integradora Santos, S.A.P.I. de C.V. / Ingenio del Cauca, S.A.S. / Comercializadora de Azúcar y Derivados Santos, S.A.P.I. de C.V.), CNT-067-2023 (JIC Capital, LTD. / Honda Motor CO., LTD / Hitachi, LTD.) and CNT-071-2023 (RHI Magnesita N.V. / Ignite Luxembourg Holdings S.A R.L).
2. Of which it is reported that the jurisdictional body that finally resolved and the file number of the amparo trials granted are: Second Collegiate Circuit Court on Administrative Matters Specialized in Economic Competition, Broadcasting, and Telecommunications, with residence in Mexico City and jurisdiction throughout the Mexican Republic, INCON. 8/2022; Second Chamber of the Supreme Court of Justice of the Nation, 17/2023; Second Chamber of the Supreme Court of Justice of the Nation, 25/2023; Second Collegiate Court on Administrative Matters of the First Circuit, 525/2022; of the amparo trials dismissed are: First District Court on Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Mexican Republic, 196/2020; First District Court on Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Mexican Republic, 65/2020; First District Court on Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Mexican Republic, 51/2023; Third District Court on Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Mexican Republic, 871/2022, and Third District Court on Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Mexican Republic, 305/2022.