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Mexico: Fall of the peso may incite antitrust violations – Cofece

By  |  February 9, 2016

The recent devaluation of Mexico’s currency before the US Dollar may provide incentives for companies to enter into illegal agreements in order to raise their prices, possibly harming consumers as a result. This was the warning delivered by Alejandra Palacios, President of Mexico’s competition regulator, COFECE.

Palacios assured gathered press that this was not an “alarmist” announcement. “At any time, there are incentives for companies to manipulate prices”, she said. “The incentive is always there to want to increase prices, and companies often reach agreements when trying to protect their share of the market.”

Mexico’s regulators are currently investigating a sharp spike in the price of eggs registered last year. The regulator will seek to determine whether this was a product of the aforementioned collusion, or whether the rise was due to market forces.

Full content: La Jornada

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