Cofece investigates marine diesel sales
Mexico‘s Federal Economic Competition Commission (Cofece) summoned several economic agents and individuals for possible price manipulation in the sale of marine diesel to the public.
In particular, the commercial policy may affect the process of free concurrence and competition when, in an unjustified manner:
- It establishes barriers and entry requirements to participate in economic activities.
- Impedes or restricts supply options, to the detriment of companies and consumers.
- Distorts productive decisions.
- Decreases the ability to compete.
- It grants special protection to certain sectors or favors differentiated treatment.
The Investigating Authority concluded its investigation and issued an opinion of probable responsibility that indicates the probable existence of absolute monopolistic practices.
With this summons, the procedure followed in the form of a trial begins, in which the economic agents and individuals may defend themselves against the accusations against them.
Cofece found evidence of a probable collusion to fix, raise, agree or manipulate the sale price (absolute monopolistic practice) in the market for the sale to the public of marine diesel in service stations in Mexico.
Marine diesel is the fuel used by various types of vessels, such as boats and ships, and the service stations where it is sold are located in coastal areas or near the mouth of rivers.
Cofece
The investigation of this matter, processed under file DE-029-2019, concluded last October 27, and in its opinion of probable responsibility, the Investigating Authority indicated that it had knowledge of facts that possibly derived in the realization of absolute monopolistic practices provided in article 53, section I, of the Federal Law of Economic Competition (LFCE).
With this summons begins the stage of the proceeding followed in the form of a trial, in charge of the Technical Secretariat of the Commission, in which the probable responsible parties may state their rights, offer evidence related to the alleged allegations made against them and file pleadings.
Once the procedure has been carried out, the Plenary of Cofece will resolve in accordance with the law.
If it is proven that an absolute monopolistic practice was carried out, sanctions may be imposed in accordance with the applicable LFCE.
