On January 31 2014 the newly created Federal Economic Competition Commission (FECC) issued its strategic plan for 2014 to 2017, in which the FECC's commissioners and principal officers established the entity's mission, vision, values, objectives and strategic lines of investigation. The FECC's objectives reflect its commitment to promoting, improving and enhancing competition in Mexico. Further, the FECC considers that there are major competition-related challenges to resolve, specifically targeting the oil, electricity, ground and air transportation, building and banking sectors.

The strategic plan is open to consultation, including views on the sectors that should be considered a priority for the FECC in respect of competition matters.

The FECC will use the following factors to determine target sectors:

  • economic growth – focusing on sectors that contribute significantly to national gross domestic product based on their domestic impact and growth rate;
  • general consumption – emphasising sectors that produce goods and services with greater public demand;
  • transversal impact – referring to sectors and markets in which intermediate goods and services are produced (ie, goods and serices which are used in the eventual production of end-consumer products and services);
  • effect on low-income households – pointing out sectors that produce goods and services with a greater impact on low-income families; and
  • regulatory issues – regarding sectors subject to government regulation that could create competition barriers.

According to the strategic plan, the sectors to be determined in the public consultation:

"will be analysed in greater detail and depth, in order to identify actual or potential market structure problems, restrictive regulations and possible anti-competitive practices that might trigger the FECC's intervention within its legal powers."(1)

However, this does not imply that the FECC will leave cases involving other sectors unattended; rather, it will take into account their legal and economic contexts accordingly.

The strategic plan further provides for the creation and immediate implementation of a new FECC intelligence unit, to:

  • monitor markets;
  • identify risks to competition;
  • collect strategic information; and
  • establish potential lines of investigation.

The secondary legislation implementing the recent constitutional reforms is expected to be considered by Congress during the current legislative period. Secondary legislation will provide greater certainty on which actions the FECC may adopt in the markets where competition concerns are identified by the studies undertaken by the agency.

For further information on this topic please contact Lucia Ojeda Cardenas at SAI Consultores SC by telephone (+52 55 59 85 6618), fax (+52 55 59 85 6628) or email ([email protected]). The SAI Consultores website can be accessed at www.sai.com.mx.

Endnotes

(1) See Page 20 of the strategic plan, available (in Spanish) at www.cfce.org.mx/cofece/attachments/article/37/Plan_Estrategico.pdf.