The FCC initiated an investigation due to possible abuse of dominance conducts in the commercialization of TV contents (the Investigation) on May 4, 2012.  Companies involved in this industry shall be ready to react or participate in the Investigation proceedings.

Implications for the companies involved in the industry under Investigation

The FCC is empowered to request for any kind of information that is relevant to potential violations of the Mexican Competition Law (MCL) in connection with facts that may be related with the Investigation to any company or individual.

Any company or individual engaged in the commercialization of TV contents may file with the same FCC another complaint related to the same facts under Investigation.

At the end of the Investigation, the FCC may impose a fine to every responsible party of up to 8% of their annual income, in addition to any civil and/or criminal liability that may result.

What is the case under investigation?

The possible abuse of dominance practices under Investigation specifically consists in possible refusal to deal, and other actions which purpose or effect consists in increasing the cost and/or reducing the demand of products or services commercialized by other competitors.

The FCC has not yet identified actions that could constitute the abuse of dominance practices, and neither has identified companies or individuals that could be responsible for infringing the MCL.

In the case at hand, the FCC has determined that the market under Investigation is the commercialization of TV contents.

Actions to consider

The companies involved in the market referred above shall be ready to properly and strategically react to any requirement of information received from CFC.

The MCL, entitles competitors, clients or suppliers involved in the markets related to the services being investigated to file additional evidence or a separate complaint related to the same facts under Investigation to protect their interests.

Conclusion

The Mexican FCC is investigating abuse of dominance in the commercialization of TV contents.  Responsible parties may be fined up to 8% of their annual turnover. Those engaged in businesses involved in the markets under Investigation must be prepared to react or participate in such proceedings.