COFECE Announces Changes In Competition Law In COVID-19 Times

In the context of the COVID-19 epidemic, caused by the SARS-CoV2 virus, recognized as a serious disease for immediate attention, 1 and considering that the Federal Ministry of Health has announced that Mexico entered into phase 2, the Federal Economic Competition Commission (COFECE or Commission) is aware of the inconveniences this situation may cause to companies, consumers and the general functioning of the markets. To contribute to uninterrupted operation of supply chains or to an artificial restriction of the supply that raises prices of goods and services, the Commission states the following:

• Collaboration agreements between economic agents will not be prosecuted as long as they don’t have the objective of displacing competitors and are necessary, given the present context, for maintaining or raising supply, satisfying the demand, protecting the supply chain and avoiding the shortage or hoarding of goods.
• Increasing or setting prices must be each company’s individual and independent decision; these cannot be induced, promoted or recommended by business associations, confederations or chambers.
• Those markets in which indiscriminate price hikes are observed will be reviewed to evaluate, and rule out, that these are being caused by possible agreements between competitors, in which case an investigation would have to be initiated.
• The Commission will expedite the review of filed concentrations to create synergies and contribute to the increase of production capacities for satisfying the demands derived from this crisis.

Full Content: COFECE

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