Essential Inputs and Antitrust Barriers in the Mexican Economic Competition Regime

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Victor Pavon-Villamayor, Jul 16, 2014

On July 7,  2014 the new Mexican Economic Competition Law came into force; this is legislation that replaces the antitrust law enacted in 1992 as one of the commitments made by the Mexican Government to sign the North America Free Trade Agreement with the United States and Canada. The new MECL embodies significant changes with respect to the previous competition regime, including, among others: (i) the creation of a new competition authority, fully independent from the central government; (ii) a significant expansion of the antitrust authorities’ powers to intervene “ex ante” in particular markets; and (iii) the enforcement of a tougher regime of sanctions for antitrust violations.

This article briefly discusses the virtues and risks associated with the two main economic concepts that have been introduced into the new MECL; namely, the notion of “barriers to competition and free entry” and the concept of essential inputs.