COFECE initiates investigations on possible monopolistic practices in the electricity market

On May 6, 2021, a notice was published in the Official Federal Gazette by the investigating authority of the COFECE regarding the initiation of an administrative investigation procedure for possible relative monopolistic practices derived from the complaint number DE-027-2020. The market under investigation is the one related to the generation, wholesale commercialization and supply of electric energy and associated products, as well as services and activities related to these markets in Mexican territory.

The acts under investigation, as well as the possible responsible parties, will not be determined until the issuance of the opinion of probable responsibility. Thus, those who are found to be probably responsible will be heard in order to determine their compliance with the Federal Antitrust Law (LFCE).

Let us recall that, in terms of the provisions of Article 54 of the LFCE, relative monopolistic practices are those consisting of any act, contract, agreement, procedure or combination that:

a) Updates any of the cases referred to in Article 56 of the law;

b) Is carried out by one or more economic agents that individually or jointly have substantial power in the same relevant market in which the practice is carried out; and

c) Has or may have as its object or effect, in the relevant market or in any related market, to unduly displace other economic agents, substantially impede their access or set forth exclusive advantages in favor of one or more economic agents.

Finally, it should be noted that the investigation period will not be less than 30 business days nor may it exceed 120 business days, which will begin to be counted as of the publication of the agreement with the possibility of an extension.

Should you require further information regarding this issue, please do not hesitate to contact us.

Yours sincerely,

Cannizzo