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Cofece postpones case due to lack of quorum

The Federal Economic Competition Commission (Cofece) os Mexico informed that it was forced to suspend the deadline to resolve the proceeding on barriers to competition in the national market of jet fuels.

Specifically, the case involves the production, importation, storage, transportation, distribution, commercialization, sale and related services (file IEBC-002-2019).

As a frame of reference: in March of this year, the Investigating Authority of Cofece issued the Preliminary Determination (PD) by which it concluded that there were elements to preliminarily determine the lack of effective competition conditions in such market.

Consequently, Cofece proposed corrective measures to eliminate the identified barriers to competition.

This PD was notified to several economic agents and public authorities.

Then, once the second stage of the procedure was substantiated and the evidence offered was presented, the file was considered to be integrated in September.

Consequently, the Plenary of the Cofece had to issue a resolution within a maximum period of 60 days, in accordance with section VII of article 94 of the Federal Economic Competition Law (LFCE).

Cofece

In order to resolve this type of proceedings, the LFCE establishes that the vote in favor of at least five commissioners is required.

However, due to the omission of the Federal Executive to propose to the Senate the missing commissioners, currently the governing body of the Cofece only has four of the seven commissioners that by constitutional mandate must be part of it.

Since it is legally unable to resolve this case, the Plenary suspended the term to issue the resolution until the minimum number of commissioners required is in place, so that the resolution of this case can be submitted to a vote. It is important to remember that when a market operates without conditions of effective competition, it generates damages to consumers as well as to the economic agents that participate therein.

The suspension prevents the Plenary from evaluating such conditions and, if necessary, imposing corrective measures to protect the public interest.

Articles 28 and 89, section III, of the Political Constitution of the United Mexican States establish that it is the responsibility of the head of the Federal Executive to propose for ratification to the Senate of the Republic, the persons who will occupy the vacancies in the Plenary of the Cofece, who must select from the three lists that the Evaluation Committee sent to it in November 2020, as well as in March and November 2021.

In December 2021, Cofece filed a constitutional controversy before the Supreme Court of Justice of the Nation due to the omission of the Federal Executive to propose before the Senate the persons who would fill two vacancies of commissioners.

For the institution, it is essential that its governing body operates as provided by the Constitution in such a way that it may fully exercise all its powers.

 

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