COFECE hits pharmaceutical cartel with maximum fines and disqualifies senior executives
The Investigative Authority of the Federal Economic Competition Commission (COFECE) have fined the numerous actors involved in a case of collusion in the pharmaceutical sector, in which agreements had been made to manipulate the supply and pricing of medical products. In an unprecedented move, COFECE also disqualified 10 executives involved in the collusion. Their actions are considered to have done great financial damage to the public treasury and low-income families.
New law against improper advertising contracts has competition implications
After gaining fast-track approval, President López Obrador issued the Law for Transparency, Prevention and
Combating Improper Practices in Advertising Contracting (the Advertising Contracting Law) in the Official
Gazette on 3 June 2021. This will become effective on 2 September 2021 and will grant new powers to the
Federal Economic Competition Commission (COFECE) but may fall outside the constitutional objectives of the
competition authority. Application of the new law may be problematic and may disregard the competence of
the Federal Telecommunications Institute (IFT).
Plural Congress = Investment (in Spanish)
If the balance between the power of the President and Congress is restored, we will have greater certainty for investors.
Energy and Trade Agreements: everyone’s business (in Spanish)
It is necessary to raise awareness about the implications of the electricity reform initiative being discussed in the Senate. May reason prevail.
COFECE releases market study on food and beverage sector
On 4 November 2020 the Federal Economic Competition Commission (COFECE) released a market study on
the food and beverage sector (specifically, focusing on the ‘modern channel’ that is, self-service stores).
COFECE considered the study relevant.
Amparo actions against CENACE act’s impact on competition in electricity industry
Since 2013, the private sector has been allowed to participate in the generation and commercialisation of electricity. Through the creation of the wholesale electricity market, generators, suppliers and consumers can
buy and sell electricity, with the National Energy Control Centre (CENACE), designated as the market operator
and monitor, acting as an intermediary.
COFECE penalises cartel in public procurement for health sector: integral services for laboratory studies and blood bank
In April 2016 the Federal Economic Competition Commission (COFECE) Investigative Authority initiated an
investigation for the probable commission of absolute monopolistic practices in the market of integral services
for laboratory studies and blood bank.(1) The investigation derived from a complaint filed by the Mexican
Institute of Social Security (IMSS), which became aware of a potential agreement between integrators to divide
among themselves the regions and packages for public tenders that IMSS had issued in 2015.
Amendment to the Mexican Procurement Law and its impact on competition matters
The Mexican Procurement Law (“LAASSP” by its Spanish acronym) establishes that, by general rule, all governmental acquisitions of goods and services must be procured through public tenders. Only in exceptional situations, it shall be allowed to do said acquisitions through a direct award or a tender restricted by invitation. Nonetheless, according to the LAASSP, public tenders may have three different scopes: (i) national, in which only Mexican suppliers or those which offer goods or services with at least 50% of national content are able to participate; (ii) international under the coverage of treaties, aimed both for national suppliers and foreign ones that belong to a country that has a free trade agreement celebrated with Mexico; and (ii) open international, where national and foreign suppliers may participate regardless of their nationality. In principle, governmental agencies and entities shall prefer a national public tender and only in cases in which it is declared void or other exceptional situations, the scope of the public tender may be broadened by general rule, all governmental acquisitions of goods and services must be
procured through public tenders. Only in exceptional situations, it shall be allowed
to do said acquisitions through a direct award or a tender restricted by invitation.
Nonetheless, according to the LAASSP, public tenders may have three different
scopes: (i) national, in which only Mexican suppliers or those which offer goods or
services with at least 50% of national content are able to participate; (ii)
international under the coverage of treaties, aimed both for national suppliers and
foreign ones that belong to a country that has a free trade agreement celebrated
with Mexico; and (ii) open international, where national and foreign suppliers may
participate regardless of their nationality. In principle, governmental agencies and
entities shall prefer a national public tender and only in cases in which it is
declared void or other exceptional situations, the scope of the public tender may
be broadened
Possible competition implications of the reform to the Law of Procurement, Leasing, and Services of the Public Sector (“LAASSP”) (in Spanish)
On August 11, 2020, a decree was published in the evening edition of the Official Gazette of the Federation, adding a fifth paragraph to Article 1 of the LAASSP. According to this amendment: “The procurement of goods or the provision of health services contracted by government agencies and entities with international intergovernmental organizations through previously […]
Three for one: austerity initiative to blend regulatory and antitrust institutions
Reform initiative
On 10 June 2020 Senator Ricardo Monreal of the National Regeneration Party (MORENA)(1)
presented a reform initiative to amend Articles 27 and 28 of the Constitution. Through this reform,
Monreal proposed to join (and extinguish) three state organs which he believes share certain powers
and competencies namely, the Federal Economic Competition Commission (COFECE), the Federal
Telecommunications Institute (IFT) and the Energy Regulatory Commission (CRE). The resulting
organ would be the National Institute of Markets and Competition for Welfare (INMECOB).