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Mexico: Supreme Court strikes down PEMEX fine

By  |  January 31, 2017
Mexico: Supreme Court strikes down PEMEX fine

Mexico’s Supreme Court (SCJN) has struck down a fine against the State Oil company PEMEX, freeing it from its obligation to pay $653 million pesos (approx. $33 million USD) over uncompetitive practices in the fuel transportation sector. The fine had been imposed by the now extinct Federal Competition Commission in 2013.

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    The Supreme Court’s Second Chamber rejected the motion to fine the government entity and its subsidiary, Pemex Refinación, arguing that the former regulator (now re-named COFECE) had based its ruling on the 2013 legal reforms, which made the relevant practice illegal. As such, the court ministers found that PEMEX had not engaged in illegal monopolistic practices, as during the period in question – before the energy reforms were enacted in 2013- the company was a constitutionally sanctioned monopoly.

    The energy reform of 2013 ended the PEMEX monopoly in areas such as transportation, making this service no longer exclusive to State companies and allowing service-station owners to make their choice when hiring private suppliers.

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