Cofece will seek to contribute to the discussion on the proposed constitutional reform regarding competition policy

By the Federal Economic Competition Commission (Cofece)

This is an automated translation of the press release issued in Spanish

Economic competition policy is an indispensable tool for the population to improve their living conditions through access to better services, goods and products, as recognized by the Political Constitution of the United Mexican States in its article 28. Thanks to its autonomy constitutional, the Federal Economic Competition Commission (Cofece or Commission) has fulfilled its mandate independently and has increased its capacity to influence markets essential for the well-being of the population and economic development.

The constitutional reform proposal presented by the Federal Executive must be analyzed and discussed by the Congress of the Union in this context. To this end, it is important to consider all the evidence available and thus be able to determine the institutional design that allows the greatest benefits to Mexicans.

A strong competition policy is key to the well-being of Mexican families, by promoting a fair and inclusive economy, deterring price manipulation or other anti-competitive practices by managers or companies. This facilitates the entry and permanence of small and medium-sized businesses in the markets and ensures that all companies, regardless of their size, compete without privileges.

In the ten years of Cofece's work as a competition authority with constitutional autonomy, it has investigated corporate conduct in the markets that most impact households; sanctioned with historic fines to large companies and managers whose overpricing directly affected consumers. Likewise, Cofece's technical and independent actions have allowed it to alert authorities and legislators about the strengths and risks that administrative decisions or regulations entail in competition matters. Therefore, it is important that indicators such as those shown below be included in the parliamentary discussion:

• As an autonomous body, Cofece imposed 4,859 million pesos in fines in 2022 alone; almost 23 times more than the amount of fines imposed in 2011 when it lacked said autonomy (213 million pesos). These fines were imposed confirming that the Commission's commitment is to Mexican families since, due to their size and impact on the various markets, the fined companies significantly affected the well-being of the population. Some that stand out are:
  • In the LP Gas market, eight gas groups and six companies dedicated to the distribution and marketing of this energy were sanctioned with an amount that, together, amounted to 2,414 million pesos. This is the highest fine that Cofece has imposed since its creation.
  • In the land passenger transportation market, fines worth 1,218 million pesos were imposed on 18 companies and 31 individuals for manipulating prices and segmenting service routes in the state of Tamaulipas and the central, central-south and southern regions. southeast of the country.
  • Various companies were sanctioned for colluding and charging surcharges in bidding procedures to provide the National Health System with laboratory studies and blood bank services. The fines imposed amounted to 626 million pesos.
• Thanks to its autonomy, Cofece has also had an impact like never before in the markets that most impact the daily lives of families, especially those in vulnerable situations, such as food, transportation, medicines, finance, and health services. and fuels, among others, helping to create a level playing field in sectors that are key to the pockets of Mexicans.
• Since 2018, the benefits to the population from Cofece's actions are equivalent, on average, to 7.5 million pesos per day, that is, almost 14 billion pesos.

These and other results demonstrate that the existence of an autonomous competition authority allows expanding the impact of competition policy for the benefit of society, generating the necessary conditions for it to exercise greater powers and eliminate monopolistic practices in our country, in accordance with its constitutional mandate. Furthermore, to have more impact and have greater deterrence of anti-competitive conduct through the imposition of greater sanctions or the use of powers that allow it to eliminate obstacles that favor some competitors over others without any reason or justification, it is necessary to strengthen the competition authority. .

It is up to the Congress of the Union to open dialogue to the plurality of voices. At Cofece we welcome the debate raised, we will be respectful of the legislative process and we will seek to participate with the task of contributing to this public dialogue and to strengthen a competition policy that puts above all else improving the quality of life of the population.