A lack of competition in Mexico’s rail freight sector, which is dominated by Grupo Mexico and Kansas City Southern de Mexico, has resulted in high customer prices, Mexico’s antitrust watchdog said on Wednesday, citing preliminary findings.
The probe, by regulator Cofece’s investigations arm, said miner Grupo Mexico, Kansas City Southern de Mexico , and Ferrovalle control more than 72 percent of the market which allows them to fix prices, restrict supply and impede access to their networks.
Grupo Mexico, which owns Ferromex and Ferrosur, and Kansas City Southern de Mexico together have a 75 percent stake in Ferrovale.
The lack of competition leads to higher logistics costs and longer wait times, which weigh on the economy, Cofece said.
If the full commission votes to approve the findings of the preliminary probe, the railways regulator will have the ability to force through new regulations on the sector.
Full Content: Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Redfin Settles $9.2M Commission Inflation Lawsuits
May 7, 2024 by
CPI
DOJ Supports Colorado’s Efforts to Block Kroger-Albertsons Merger
May 7, 2024 by
CPI
Japan Considers Regulation of AI Developers
May 7, 2024 by
CPI
European Commission Extends Decision Deadline for Ita-Lufthansa Merger
May 7, 2024 by
CPI
UK, US and Australia Sanction Senior Leader of LockBit Cybercrime Gang
May 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI