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Antitrust litigation in Mexico concerns legal disputes and enforcement actions related to the rules that promote economic competition and prohibit unfair or monopolistic practices. The principal objective of antitrust law is to ensure open and fair markets, prevent abuse of market power, and protect consumers and businesses from practices that restrict competition. Antitrust issues can appear in a variety of business operations, from mergers and acquisitions to pricing strategies and supplier agreements. In Mexico, enforcement and oversight are carried out primarily by the Federal Economic Competition Commission (Comisión Federal de Competencia Económica, or COFECE) and, in certain areas, the Federal Telecommunications Institute (IFT).
Individuals and businesses may need an antitrust lawyer in several common scenarios:
Antitrust litigation is often complex and highly specialized, requiring thorough knowledge of both local law and the economics of competition. Legal assistance helps protect your interests and reduces the risk of severe penalties.
Mexico’s antitrust legal framework is anchored by the Federal Economic Competition Law (Ley Federal de Competencia Económica or LFCE). The law prohibits:
The COFECE is responsible for investigating, administratively prosecuting, and sanctioning most antitrust violations, while the IFT regulates competition in telecommunications and broadcasting. Violations can result in severe fines, criminal sanctions, and the nullification of contracts found to be in breach of the law. Special procedures exist for leniency (reduction in sanctions for early cooperation) and for undertakings made by businesses to restore competition. Judicial review is possible before specialized courts or constitutional courts.
An antitrust violation in Mexico includes practices that unfairly restrict competition, such as price-fixing, collusion, abuse of market dominance, and certain mergers or acquisitions that can harm the competitive process.
The Federal Economic Competition Commission (COFECE) handles most sectors, while the Federal Telecommunications Institute (IFT) oversees the telecommunications and broadcasting industries.
Penalties may include administrative fines that can reach up to ten percent of the offender's income, disqualification from management roles, and, in some cases, criminal prosecution and imprisonment.
Yes. Individuals and companies harmed by anticompetitive practices can file private damage claims after COFECE or IFT have determined a violation has occurred.
COFECE and IFT may initiate investigations after complaints, whistleblower reports, or their own market monitoring. Investigations can include document requests, interviews, and on-site inspections known as “dawn raids.”
Leniency programs allow businesses or individuals involved in a cartel to voluntarily come forward, cooperate with authorities, and obtain reduced sanctions or immunity in exchange for their assistance.
Abuse of dominance refers to a company with substantial market power engaging in conduct that unfairly limits competition, such as refusing to supply essential inputs, imposing unfair prices, or tying sales of products.
Yes. Certain mergers and acquisitions that surpass financial thresholds must be notified to and reviewed by COFECE or IFT to ensure they do not harm competition.
Companies subject to investigation have due process rights, including the right to legal representation, to review evidence, to present defensive arguments, and to challenge adverse rulings before specialized courts.
Timelines can vary from a few months to several years depending on the complexity of the case, the volume of evidence, and potential appeals or judicial reviews.
These resources offer guidance, publications, and assistance for businesses and individuals navigating antitrust litigation in Mexico.
If you believe you are involved in, or impacted by, antitrust issues in Mexico, taking action early is crucial. Here is how to proceed:
Taking these preliminary steps can help safeguard your position, minimize risks, and ensure you receive informed legal support throughout the process.
