Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

Article 127 of the Act provides that the Commission may order the suspension, correction or elimination of an anticompetitive practice, as well as imposing fines.
Since the 2014 reform, the COFECE may also order measures to regulate access to essential input/facilities or eliminate barriers to competition. Pursuant to Article 94 of the Act, the COFECE may:
- make recommendations to the public auth …

Cease and desist orders

Article 127 of the Act provides that the Commission may order the suspension, correction or elimination of an anticompetitive practice, as well as imposing fines.

Since the 2014 reform, the COFECE may also order measures to regulate access to essential input/facilities or eliminate barriers to competition. Pursuant to Article 94 of the Act, the COFECE may:

- make recommendations to the public authorities where barriers to competition are the result of legislative provisions;

- order undertakings to eliminate the barriers to competition they have created;

- regulate conditions of access to essential input/facilities, in particular price, technical and quality requirements;

- order the  divestiture of assets, rights or equity interests in the proportions necessary to eliminate the anticompetitive effects of the practice.

Divestiture may also be imposed pursuant to Article 131, instead of the relevant sanction for the infringement committed, where the undertaking in question is a repeat offender.

The 2011 Amendment dramatically increased the amount of penalties incurred. Under Article 127 of the 2014 Act, the COFECE can now impose the following maximum administrative fines:

- 10% of the annual tax income of the wrongdoer in case of absolute monopolistic practices;

- 8% of the annual tax income of the wrongdoer in case of relative monopolistic practices.

For repeat defenders, fines may be doubled.

Individuals may also be held personally liable. 

Fines

In 2006, a leniency program was put in place in order to better combat cartels having an effect on the Mexican territory and to provide the greatest benefit for consumers and for the economy as a whole.

By this system, the first party involved in an absolute monopolistic practice to apply for leniency and bring sufficient evidence allowing the Commission to assume the existence of the practice will be able to receive the maximum benefit from a fine reduction equal to the amount of the minimum wage (Articles 103 of the 2014 Act).

Other parties involved in the infringement (individuals or legal persons) may also obtain the benefit of the leniency program and the reduction can be of up to 50%, 30% or 20% (according to chronological order of application) of the applicable fine if they provide any new information that is considered relevant by the Commission.

On 22 June 2015, the COFECE issued Guidelines on the leniency program to provide further guidance on how to apply for leniency and what can be expected from and by the applicants. The COFECE clearly specifies that the program covers both administrative and criminal liability.

On 4 March 2020,  Regulatory Provisions for the Immunity and Sanction Reduction Program Foreseen in Article 103 of the Federal Law of Economic Competition were published in the Official Gazette, which detail the procedural steps of a leniency application and establish a marker system. The provisions also specify that the benefit of leniency can only be requested before the issuance of the agreement for the closure of the investigation.

Leniency

In case of absolute monopolistic practices, the 2014 Act increased the duration of imprisonment from up to five years to up to ten years.

Global Competition Law

1102. Cease and desist orders

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Les notions juridiques connexes

1102. Cease and desist orders

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise