On June 6, the Federal Economic Competition Commission (“COFECE”) published in the Official Gazette of the Federation announcements regarding the commencement of four investigations in sectors considered strategic for the Mexican economy, to detect possible anticompetitive behavior (the “Investigations”)(1). The Investigations include three proceedings initiated ex officio by COFECE’s Investigative Authority (as a result of the authority’s intelligence work and market monitoring) and one initiated by complaint (as a result of a complaint from an affected party or someone with sufficient information to meet the established requirements and the existence of an objective cause, that is, the possibility of anticompetitive behavior).

COFECE’s actions in these markets seek to guarantee effective competition conditions, prevent anticompetitive practices, and protect the welfare of consumers, end users, and the efficiency of strategic markets for the country’s economic and social development.

The Investigations and the strategic sectors to which they refer are described below:

1.Lime market (2)

This is an investigation initiated ex officio by COFECE, focused on a potential illegal concentration in the market for the production, distribution and commercialization of lime and related products nationwide.

This investigation seeks to determine whether a concentration between economic agents has taken place without having obtained prior authorization from COFECE, which may or may not have possible negative effects on competition and on consumers.

2.Market for chemical additives for construction (3)

COFECE is investigating possible illegal agreements between competitors in the market for the production, commercialization and distribution of chemical additives for construction materials nationwide. 

These chemical additives are added to various construction materials to improve their properties, such as cement, mortar, and concrete. With this investigation, initiated ex officio, COFECE aims to investigate possible illegal agreements between competitors that could limit access to products used in construction and raise prices in this sector. COFECE emphasizes that construction is a key sector in Mexico for economic growth and family welfare.

3.Public procurement of insurance (4)

This investigation by COFECE, initiated ex officio, focuses on the possible existence of illegal agreements between competitors in the market of public procurement proceedings for life, accident and health, property, and pension insurance, as well as operations and branches related to these, nationwide.

According to COFECE, these possible agreements would increase purchase prices in public procurement and, therefore, affect the efficient use of public funds and limit the resources available for other government actions.

4.Platforms for the purchase, sale and rental of real estate (5)

This COFECE investigation was initiated by complaint and seeks to determine whether there are relative monopolistic practices (also known as abuse of dominant position practices) in the market of multiple listing services for real estate and related services. Specifically, according to COFECE, the aim is to determine whether one or more companies may be preventing or limiting other economic agents from participating in these services. 

Multiple listing services for real estate refer to digital platforms that allow the listing, buying, selling or renting of properties. COFECE highlights that these tools allow real estate agents and companies to share information about available properties for sale or rent, so that people can easily compare prices, locations and conditions in a transparent and accessible manner. 

The Investigations began approximately in November 2024 and are currently in the information-gathering stage. Investigation proceedings may last up to five periods of 120 business days each and must be made public within the first period. The Investigations are concluding their first period of 120 business days. 

In accordance with the Federal Economic Competition Law (“LFCE”), the Investigations do not imply any prejudgment by COFECE, nor do they identify responsible parties. The economic agents involved, if COFECE issues opinions of probable liability (dictámenes de probable responsabilidad), may present evidence and arguments before the Investigating Authority in the corresponding trial-like proceedings, and the Board of COFECE will determine, in due course, whether there is sufficient evidence to sanction or impose corrective measures. In effect, if the Investigative Authority finds elements pointing to violations of the LFCE, it would issue opinions of probable liability (dictámenes de probable responsabilidad) and the corresponding trial-like proceedings would begin. 

COFECE has requested that anyone in possession of information pertaining to the Investigations should present such information before the Investigative Authority and has reminded that whoever participated in any conduct prohibited by the LFCE may access the benefits of COFECE’s Immunity and Sanction Reduction Program (Programa de Inmunidad y Reducción de Sanciones).

COFECE will continue to carry out these Investigations in accordance with the provisions of the LFCE, pending approval of the proposal to amend the LFCE that is currently being processed in Congress.

Ritch Mueller has extensive experience in competition and antitrust matters, with a team of professionals available to provide advice to economic agents whose activities may be impacted by the Investigations.

If you require additional information, please contact Octavio Olivo Villa ([email protected]) or James E. Ritch ([email protected]), leaders of the competition and antitrust practice area of Ritch Mueller.  

Visit our site www.ritch.com.mx or reach us at (+52) 55 9178 7000 | [email protected]

(1) ACCORDING TO COFECE’S PRESS RELEASE: HTTPS://WWW.COFECE.MX/COFECE-HACE-PUBLICAS-CUATRO-INVESTIGACIONES-INICIADAS-EN-2024-CONFORME-A-LOS-TERMINOS-LEGALES/

(2) FILE IO-005-2024.

(3) FILE IO-003-2024.

(4) FILE IO-004-2024.

(5) FILE DE-021-2024.