With this Information Note allow us to provide you a brief analysis of the relevant aspects of the Ruling CFCE-026-2018 in which the Plenary of the Federal Economic Competition Commission amends the Regulatory Provisions of the Federal Economic Competition Law (“Ruling Amending the Regulatory Provisions”), published in the Official Federal Gazette (“DOF” for its acronym in Spanish) on February 14, 2018, which entered into force on the day following its publication, in accordance with the following:
- Section IV of article 28 of the Political Constitution of the United Mexican States “Mexican Constitution”) establishes, among other things, that the Federal Economic Competition Commission (“COFECE” for its acronym in Spanish) may issue general administrative provisions as part of its regulatory function in the sector of its jurisdiction.
- Sections XVII and XXII of article 12 of the Federal Economic Competition Law (“Economic Competition Law”) published in the DOF on May 23, 2014, establishes that the COFECE, among other things, may issue regulatory provisions which must be published in the DOF. Such provisions must deal with the following matters, among others:
- a) Imposition of sanctions.
- b) Monopolistic practices.
- c) Determination of substantial power for one or more Economic Agents.
- d) Determination of relevant markets.
- e) Barriers to competition and free trade.
- f) Essential inputs, and
- g) Divestment of assets, rights, quota partnership interests or shares of the Economic Agents.
- By virtue of the foregoing, on November 10, 2014 the Regulatory Provisions for the Federal Economic Competition Law (“Regulatory Provisions”) were published in the DOF.
II. GENERAL PROVISIONS OF THE RULING AMENDING THE REGULATORY PROVISIONS
According to the introductory part of the Ruling CFCE-026-2018, the purpose of the amendments to the Regulatory Provisions published on February 14, 2018, is to guarantee free competition and free trade and to prevent, investigate and combat monopolies, monopolistic practices, unlawful concentrations and other restrictions on the efficient functioning of the markets.
In this regard, the Ruling Amending the Regulatory Provisions establishes the following relevant changes, among others:
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According to the considerations of the Ruling Amending the Regulatory Provisions, the purpose of the amendments is to guarantee free trade and economic competition; prevent, investigate and combat monopolies, monopolistic practices and other restrictions on the efficient functioning of the markets, and impose the sanctions applicable to such conduct, among other things.
In this regard, the amendments generally develop those articles of the Regulatory Provisions that indicated the existence of a procedure or compliance with certain requirements, but did so only generally.
Specifically, the Ruling Amending the Regulatory Provisions establishes time periods in the proceedings carried out before the COFECE and gives greater clarity regarding their processing and presentation.