Cofece investigates maritime transportation

Cofece initiated an investigation to determine whether there are conditions of effective competition in the maritime transportation of passengers and roll-on/roll-off cargo in Baja California Sur, Mexico.

In 2021, more than 11 million tons of cargo and more than 198,000 passengers were transported by sea in cabotage traffic, from or to ports in Baja California Sur.

The Investigating Authority of Cofece published in the Official Gazette of the Federation the initiation of an investigation in the maritime transportation services of passengers and roll-on/roll-off cargo, as well as in cabotage navigation with origin or destination in Baja California Sur, in order to determine the existence of conditions of effective competition.

This investigation was initiated ex officio and is identified with file number DC-001-2022.

Maritime transportation

Baja California Sur is the state with the longest coastline.

Due to its geographical position, maritime transportation of roll-on/roll-off cargo and passengers is key to move goods (such as food, construction materials and other raw materials), as well as people to and from the state.

The procedure to resolve on the existence of conditions of effective competition in a market takes place when the laws or sectorial regulations expressly provide for Cofece to resolve or give its opinion on the matter.

In the absence of such conditions, the corresponding authority may implement regulations to eliminate the effects caused by the lack of competition. In this case, it would be the Ministry of the Navy in accordance with Articles 130 and 140 of the Maritime Navigation and Commerce Law.

During this investigation, the Investigating Authority has the power to request information or documentation from the regulators of the sector or to request it from the economic agents that participate in the market, as well as to make use of other investigative powers.

Likewise, it is open to attend and receive information from any person who contributes to the investigation.

Pursuant to Article 96 of the Federal Antitrust Law, the Investigating Authority has a period to conduct the investigation that may not be less than 15 nor exceed 45 business days, which may be extended once for the same period.

After this period, if applicable, a preliminary opinion will be issued, to later receive the manifestations of the persons with legal interest.

Finally, the Plenary could issue a resolution on the declaration of conditions of effective competition.