Mexico City, January 7th, 2022.
On January 5th, 2022, the Federal Economic Competition Commission (“FECC”) published in the Official Gazette (“OG”) the launch of an ex officio investigation into the potential commission of absolute monopolistic practices (“AMP”) in the market for the integration, installation, maintenance and distribution of equipment, accessories and replacement parts for the use of industrial gases in Mexico.
The Investigative Authority has cause to suspect the existence of anticompetitive agreements. The object of the investigation is a possible collusion regarding the infrastructure necessary for industrial gases used in the energy, health, food and chemical industries, as well the construction and production of advanced electronics, among others.
The AMPs are the agreements, contracts or arrangements between competitors whose object or effect is the manipulation of prices, restriction or limitation of supply or demand, segmentation of markets, bid rigging and exchanging information with the object of any of the above behaviors.
AMPs are punishable with fines up to 10% of the income of each agent involved, as well as imprisonment of up to 10 years and disqualification from exercising certain positions for the individuals involved.
In this investigation, the FECC may subpoena written information as well as testimony from individuals involved in or related to the market. According to the Federal Economic Competition Law there is an obligation for the required economic agents to cooperate and submit the requested information to the FECC.
The publication of such investigation is for the purpose of providing any economic agent involved in the relevant market with a stake in the matter with the opportunity of contributing and providing any information in their best interest. Therefore, any person or company that considers that it may have an interest in the relevant market will have the opportunity to provide its view to the FECC.
The Competition and Antitrust Practice of the firm will be pleased to provide any information regarding the content of this document.
S I N C E R E L Y,