Legal privilege stands: FECC must guarantee its applicability
On December 8 2016 the First Collegiate Tribunal on Administrative Matters Specialised in Economic
Competition, Broadcasting and Telecommunications recognised the concept of attorney-client
privilege and the attorney-client work product doctrine in an antitrust context for the first time (for
further details please see “Courts recognise attorney-client privilege in antitrust matter for first
time”). However, the tribunal’s ruling was non-binding and could be used by specialised judges only
as a guide.
FECC launches project to develop guidelines for analysis of collaboration agreements between competitors
In January 2017 the Federal Economic Competition Commission (FECC) 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.
According to the FECC, this project will:
l clarify key concepts on the subject;
l collect best practices on the analysis of collaboration agreements among competitors;
l indicate specific criteria to identify the activities that should be investigated; and
l highlight collaboration agreements that may be considered collusive.
FECC penalises individuals for commissioning absolute monopolistic practice in tortilla market
Corn tortillas are a fundamental source of nutrition for Mexican families. Given the importance of the
corn tortilla market, it has come under the scrutiny of several authorities, including the Attorney
General for Consumer Protection (PROFECO) and the former Federal Competition Commission (CFC).
(1) For example, in February 2016 PROFECO suspended three corn tortilla retailers from Hermosillo,
Sonora, for increasing their prices to up to Ps24 (approximately $1.3) a kilo for no justifiable reason.
FECC releases study on competition barriers relating to expired patent pharmaceutical products
Patents are essential for incentivising innovation and the development of new and improved
pharmaceutical products. They give innovative laboratories exclusive exploitation rights over their
pharmaceutical products for 20 years, after which other laboratories can develop their own generic
version to compete with the original product
Specialised Competition Court annuls FECC’s resolution revoking immunity under leniency programme
On July 5 2016 the Federal Economic Competition Commission (FECC) imposed total fines of
$3,882,378.52(1) on Denso and Mitsubishi for commissioning an absolute monopolistic practice in a
sensible commercial information exchange, the object and effect of which was the manipulation of
the price of automobile air conditioner compressors.
FECC initiates first criminal action against probable cartel
Criminal action is considered to be an effective tool to dissuade cartels across the globe. It was
introduced into the Mexican competition law framework in 2011,(1) after the Federal Law of
Economic Competition and the Federal Criminal Code were amended. Further, in 2014, as a
consequence of the new Federal Law of Economic Competition’s enactment, the applicable
dispositions on criminal liability were modified to increase penalties and adjust some procedural
issues.
Competition and antitrust in the digital age
While the digital economy offers abundant opportunities to customers and retailers alike, it also raises a number of competition concerns, including the impact on bricks-and-mortar businesses, the potential for abuse of market power by major digital platforms and the challenge of fostering online competition while preventing free riding. Competition authorities must evolve and adapt traditional antitrust principles and approaches to meet the challenges of the rapidly changing digital market.
FECC will focus on priority sectors in 2017
The Federal Economic Competition Commission (FECC) recently issued its Annual Work Programme.
The programme’s initiatives largely focus on sectors of strategic importance to Mexico’s economic
and social interests.
Courts recognise attorney-client privilege in antitrust matter for first time
On December 8 2016 the First Collegiate Tribunal on Administrative Matters Specialised in Economic Competition, Broadcasting and Telecommunications ordered the admission of an amparo trial (ie, a federal trial in which the complainant alleges a violation of his or her constitutional rights by an authority) against the Federal Economic Competition Commission (FECC) for the actions of its representatives, who had obtained confidential documents protected by attorney-client privilege during a dawn raid.
FECC focuses on pharmaceutical sector
Shortly after its establishment in 2013, the Federal Economic Competition Commission (FECC)
drafted its strategic plan for 2014 to 2017. The plan established the criteria for determining where
the FECC should focus its attention in regards to enhancing competition.(1) The FECC also issued a
public consultation document(2) seeking feedback regarding which sectors should be prioritised
based on the previously defined criteria. The results of this public consultation indicated that the
pharmaceutical sector should be a priority for the FECC, particularly regarding the sale of medicines
to public health institutions and these institutions’ IP rights. As such, the strategic plan
acknowledged that there is a lack of competition in the pharmaceutical sector, which has led to a 33%
to 46% reduction in households that can afford to buy pharmaceutical products