Competition Law and Policy in Mexico, 2004

Abstract

This report on Mexico’s competition law and policy, which was the foundation for a peer review examination in early 2004, is a follow-up to a 1998 OECD assessment. Mexico’s competition commission (“CFC”) has become a mature and well-respected agency; however, the degree of general support for competition policy in Mexico remains an open question. The CFC has encountered problems in the courts, and its resources have declined despite an increasing workload. The 2004 report and peer review recommended a number of changes in operations and law to make enforcement and advocacy more effective. In 2006, Mexico revised its basic competition law to incorporate many of these recommendations, such as strengthening investigative powers for onsite inspections, increasing sanctions (including the possibility of orders to divest assets in case of serious, repeat violations) and providing for Senate approval of appointments to the CFC. In response to court rulings that some applications of the previous law were unconstitutional, the revised law now specifies when practices such as predatory pricing, exclusive dealing, cross subsidization and price discrimination would be violations. The merger notification system has been simplified. The amendments have also strengthened the CFC’s roles and powers of advocacy and policy advice in dealing with legislation, regulatory proceedings and other levels of government.