COFECE has initiated a relative monopolistic practice investigation (abuse of dominance) in the market of digital advertising and related services in the Mexican territory.

The Federal Economic Competition Commission (FECC) made public today that it has initiated the investigation IO-003-2020 for the probable execution of relative monopolistic practices in the market of digital advertising and related services consisting in tied purchases or sales and/or the increase of costs, the obstruction of the productive process or the reduction of the demand faced by other economic agents.

Regarding this investigation, the FECC explained that digital advertising and its related services have provided consumers new ways to search content, compare and buy different products and services. In the case of advertisers, they have provided new means to promote their campaigns. The FECC also mentioned that in 2019 Mexico was the second country with the highest investment and growth in digital advertising in Latin America.

In this investigation, the FECC may request, from economic agents that participate or are related to the investigated market, that information in writing or statements be provided, or it may carry out inspections. In such cases, the Federal Economic Competition Law (FECL) sets out the obligation for economic agents to cooperate with the FECC and provide it with the requested information.

On the other hand, the publication of such investigation is for the purpose of providing any economic agent that may have an interest in the matter with the opportunity of contributing and providing any information it deems appropriate with relation to the investigated conduct or the circumstances which may violate the FECL. Therefore, any person or company, that considers that it may have been prejudiced in the investigated 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 additional information on the topic. 

Sincerely, 

Amilcar Peredo ([email protected])

Fernanda Garza ([email protected])

León Jiménez ([email protected])

Carmina Paredes ([email protected])