Competition considerations between entities of same corporate group during bidding process
COFECE investigation
In September 2014 the Federal Economic Competition Commission (COFECE) investigative authority launched an investigation into two polyethylene glove providers for absolute monopolistic practices relating to the Mexican Social Security Institute’s acquisition of polyethylene healing materials (specifically, gloves).
COFECE rejects Walmart’s acquisition of Cornershop
On 5 June 2019 the Federal Economic Competition Commission (COFECE) issued a press release
announcing that it had rejected Wal-Mart International Holdings, Inc’s (Walmart’s) proposal to
acquire Delivery Technologies, S de RL de CV (Cornershop).
According to the press release, the COFECE rejected the acquisition in light of the potential risks that
it posed to competition and free market access.
COFECE amends recommendations to foster competition in gasoline and diesel markets
Following the 2013 constitutional energy amendment, the Mexican energy market became a competitive market that allowed private in vestment. In addition, the Hydrocarbon Law, which was issued in January 2015, allows third parties which are unrelated to the state-owned enterprise Petroleos Mexicanos (Pemex) to sell gasoline and diesel. In light of these developments, in 2016 the Mexican Federal Economic Competition Commission (COFECE) issued a series of recommendations aimed at fostering competition in the gasoline and diesel markets.
COFECE approves commitments to restore competition in pharmaceutical market
In August 2015 the Federal Economic Competition Commission (COFECE) approved a concentration
between Dutch fund Moench Coöperatif, UA and one of the major pharmaceutical product
distributors in Mexico, Marzam, through which the former acquired control over the latter. The
concentration was approved without commitments, as the COFECE was advised that Moench
Coöperatif did not participate in the same market as Marzam and thus that there was no overlap
between the agents involved.
FECC issues Competition Agenda for Public Procurement
On 17 July 2018 the Federal Competition Commission (FECC) issued its Competition Agenda for
Public Procurement, in which it presented its findings regarding competition issues that arise during
the public procurement process. In the agenda, the FECC also proposed certain courses of action
(both administrative and legislative) to promote effective competition in public procurement.
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
Do you really know your company’s financial status? Can you make quick and reliable decisions with the financial information you have? (in Spanish)
Executives of small and medium-sized enterprises are often occupied with the daily operations of the business—generating revenue, meeting customer demands, etc.—and rarely take the time to keep their financial records up to date. As the business lifecycle progresses, the need for human capital and strategic analysis intensifies in both quantity and quality. This, in turn, requires ongoing payroll or external expenses that companies may not always be able to afford or sustain, especially those with variable revenue cycles.