Cofece investigates digital services market in Mexico

24th of November, 2024

English • Français • Português • Español

Portada » Cofece investigates digital services market in Mexico

Cofece investigates digital services market in Mexico

3 julio, 2023

English

Mexico‘s Federal Economic Competition Commission (Cofece) announced on Monday that it initiated an investigation into the digital services market, as well as digital products and related services.

To begin with, Cofece published a notice in the Official Journal of the Federation (DOF) through which its investigating authority reports the initiation of the complaint investigation identified with file number DE-023-2022 for the possible commission of relative monopolistic practices in the market for the development, marketing and sale of digital goods and/or services, as well as related services.

To take into account: Mexico has two main authorities that ensure and promote competition. These are Cofece and the Federal Telecommunications Institute (IFT). Both are autonomous constitutional agencies.

Cofece oversees competition in all sectors of the economy. However, it does not handle the telecommunications and broadcasting sectors. In these cases, the IFT acts as the competition authority. Importantly, the IFT holds the same powers as Cofece does in other sectors.

Although the LFCE defines the specific responsibilities of each institution, conflicts may arise. If there is a dispute about their competence, it is resolved in the Collegiate Circuit Courts. These courts specialize in administrative matters, particularly in economic competition, broadcasting, and telecommunications.

Since 2017, the courts have resolved four such cases. Interestingly, three of these were related to digital markets.

Digital services

In 2021, the IFT suspended its investigation into competition in digital markets involving major technology companies. This happened because Cofece claimed authority to handle the investigation instead of the IFT.

Between 2017 and 2021, Cofece launched 37 investigations into alleged monopolistic practices. As a result, 21 practices were sanctioned.

Some penalties targeted collusive behavior in sectors such as health, energy (public gasoline sales), and services (financial, passenger land transport, and air transport within Mexico).

Additionally, certain relative monopolistic practices were penalized, including tied sales in the energy sector. During this period, 699 economic concentrations were approved, 11 with conditions in areas like agri-food and digital platforms. However, seven mergers were denied, affecting manufacturing, retail, and distribution sectors.

Redacción Opportimes

[themoneytizer id="51423-6"]