A PYMNTS Company

Mexico: COFECE to probe IUSA-CFE electricity meter sales

By  |  October 30, 2017

The Investigating Authority at Mexico’s Federal Commission for Economic Competition (COFECE) announced this week it will launch an investigation against Grupo IUSA for alleged monopolistic practices in the sale of electricity meters to the state-run monopoly, the Federal Electricity Commission (CFE).

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    A CFE source explained that the could stem from possible collusion among bidders for public tenders, similar to what occurred among pharmaceutical companies related to sales to the Mexican Social Security Institute (IMSS).

    COFECE’s statement added that “derived from the information provided by the complainant […] this Federal Commission of Economic Competition was aware of facts that led to the possible existence of absolute monopolistic practices …” CFE invested more than 15 billion pesos in the acquisition of electric meters through various public procurement processes.

    If the uncompetitive practices are proven, IUSA will be liable to a fine equal to 10% of their income for the period. Additionally, individuals who participated in or facilitated the agreement may face charges.

    Full Content: El Financiero

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.