March 31, 2020

Mexican Antitrust Authority (COFECE) Issues Statement Regarding COVID-19

Holland & Knight Alert
Luis Rubio Barnetche

In the context of the current emergency situation created by COVID-19, Mexican's antitrust authority — the Comisión Federal de Competencia Económica (COFECE) — issued a statement that outlines its position in terms of the application of the Ley Federal de Competencia Económica (Federal Law on Economic Competition) to help ensure that supply chains are not interrupted or that supply is not artificially restricted so that goods or services become more expensive.

According to COFECE's statement:

  • Collaboration agreements between economic agents that, in the current context, are necessary to maintain or increase supply, satisfy demand, protect supply chains or avoid shortages or hoarding of goods, and which are not intended to displace competitors, would not be pursued.
  • Price increases or fixing must be an individual and independent decision of each company; they cannot be induced, encouraged or recommended by associations, confederations or chambers to their participants.
  • Markets where indiscriminate increases in price take place will be reviewed to evaluate and, where appropriate, rule out possible arrangements between competitors as their cause, in which case an investigation procedure would have to be initiated.
  • COFECE will expedite analysis of consolidations that arise to make synergies and add production capacities to satisfy in a timely and sufficient manner the needs derived from this crisis.

Holland & Knight attorneys have extensive experience in antitrust matters in a variety of industries. For more information, contact the authors or Holland & Knight's Mexico City office.

Holland & Knight has established a COVID-19 Response Team to help clients respond to a variety of business and legal issues they may be facing in this crisis. Please visit Holland & Knight's Response Page for the latest COVID-19 news and updates important to your business.

DISCLAIMER: Please note that the situation surrounding COVID-19 is evolving and that the subject matter discussed in these publications may change on a daily basis. Please contact your responsible Holland & Knight lawyer or the author of this alert for timely advice.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem. Moreover, the laws of each jurisdiction are different and are constantly changing. If you have specific questions regarding a particular fact situation, we urge you to consult competent legal counsel.

Related Insights