Mexico's Antitrust Commission (COFECE) has initiated an investigation regarding abuse of dominance within the e-commerce market in Mexico. The investigation encompasses an array of e-commerce market participants.
The Federal Antitrust Law considers as abuse of dominance any agreements or coordinated practices between non-competitors' economic agents carried out by one or more economic agents with substantial power in the relevant market, which purpose or effect is to illegally displace another economic agent from such relevant market, to impede access to such market to another economic agent or to establish exclusive advantages in favor of one or several economic agents.
COFECE intends to prevent and/or redress the possible abuse of dominance of economic agents with substantial power in the e-commerce market. It may require any economic agent that participates in the aforementioned market to provide information about its operations, as well as accounting, commercial and corporate records, among others. Such requests for information do not imply that the relevant economic agent actually committed any forbidden practice.
Businesses that receive requests for information from COFECE in this investigation should consider asking experienced counsel for guidance before responding, in order to (i) avoid providing information in excess of what is being requested by COFECE; (ii) limit the amount of information provided to the minimum necessary, ideally without exposing the company to a subsequent request; (iii) control the investigation process directly with COFECE; and (iv) when required, provide the necessary explanations regarding the raw data to be submitted.