In the wake of Hurricane Otis’s devastating impact on the coast of Guerrero, the Federal Economic Competition Commission (Cofece) has expressed its unwavering solidarity with the affected population. The Commission has recognized the urgency of accelerating the recovery of households and productive activities in the aftermath of this natural disaster.
Cofece is now prioritizing efforts to redouble its initiatives and is issuing a call to action to the public, private, and social sectors. The aim is to ensure that competitive conditions prevail, enabling the reestablishment of supply chains and the removal of artificial restrictions on the supply of goods and services. Equally important is the prevention of any undue price manipulation.
The Commission is making several critical points clear in this context:
Prohibition of Anti-competitive Practices: Cofece firmly underscores that agreements or information exchanges among competitors, designed to manipulate prices, divide markets, segment markets, restrict the supply of goods and services, or coordinate bids in tenders, are in direct violation of the Federal Economic Competition Law (LFCE). Such practices not only hinder fair competition but also impede the recovery efforts in the aftermath of Hurricane Otis.
Independent Pricing Decisions: In light of the potential for substantial changes in demand and prices for various goods and services due to the disaster, Cofece serves as a reminder that any alterations in pricing must stem from individual and independent decisions. Companies are cautioned not to allow their pricing strategies to be influenced, encouraged, or recommended by associations, confederations, chambers, or any other coordination mechanisms among competitors.
Vigilance Against Price Manipulation: The Commission is unwavering in its commitment to closely monitor the situation. It has pledged to investigate and impose sanctions on any agreements, suggestions, or recommendations by economic agents or groups that could result in price manipulation. The objective is to ensure that prices remain fair, transparent, and competitive in support of the recovery efforts and consumer rights.
In the face of this challenging situation, Cofece’s dedication to maintaining fair competition and preventing anti-competitive behavior is paramount. This commitment is not only a show of support for the affected population but also a crucial step towards aiding the region’s recovery in the aftermath of Hurricane Otis. Cofece encourages all stakeholders to collaborate in these efforts to ensure a more equitable and efficient recovery process.