Formally, Mexican antitrust laws and regulations will not suffer any change as a consequence of the COVID-19 pandemic. However, seeking to avoid disruptions to the supply chains, as well as artificial restrictions to the offer of goods or services that leads to price increases, COFECE has established general guidelines that shall govern interaction among economic agents during the emergency:
- Collaboration agreements.
The Commission has stated that it will not prosecute any collaboration arrangement among economic agents, even though such arrangements implicate risks to the competition in the relevant market, as long as such agreements where deemed necessary within the frame of the actual sanitary emergency either to maintain or increase supply; satisfy demand of goods or services; protect supply chains; avoid shortages or hoarding of goods; and, on the conditions that the purpose of such arrangements is not to displace other competing agents.
In this case, economic agents must approach to COFECE´s investigating authority to inform about the agreement and empathize its importance in connection to the handling of the sanitary emergency.
- Price increase as an independent decision.
Aware that crisis imply market disruptions, COFECE has sharpened that legitimate price increases must derive from individual and independent decisions of the economic agents and must not be induced, encouraged or recommended by associations, confederations or chambers to their participants.
Notwithstanding the foregoing, COFECE will monitor such unilateral decisions in order to avoid the existence of any barrier or conduct against the Mexican antitrust policies, in which case, an investigation will be initiated.
As an example, COFECE’s investigating authority has issued a warning to the National Chamber of the Sugar and Alcohol Industry (Cámara Nacional de la Industria Alcoholera y Azucarera), related to potential price increase in the alcohol and other related products.
Considering the current conditions, the Commission has deemed as specially harmful any agreement taken by competitors with the intent to manipulate prices; restrict the supply of goods and/or services; segment markets; and, coordinate or refrain from participating in public bids, those kind of agreements will be considered particularly harmful, an therefore will be investigated and, if necessary, sanctioned to the full extent of the law.
- Hyped increases in price.
COFECE will be particularly vigilant to sensitive markets and to excessive increases of price in such markets in order to evaluate creation of barriers of entry or arrangements between economic agents causing such exaggerated increases. In such cases an investigation will be initiated.
- Merger control expedite procedures.
The Commission will expedite analysis of concentrations intending to cause synergies between economic agents to increase production of items required or essential to deal with the ongoing COVID-19 sanitary emergency.
Social Media cookies collect information about you sharing information from our website via social media tools, or analytics to understand your browsing between social media tools or our Social Media campaigns and our own websites. We do this to optimise the mix of channels to provide you with our content. Details concerning the tools in use are in our privacy policy.