Mexico: COFECE fines tortilla-maker groups for price fixing

Mexico’s Federal Commission for Economic Competition (COFECE) has fined 5 individuals involved in the tortilla industry, as well as the Palenque Union, Flor de Maíz Union, and the Association for the Dough and Tortilla Industry in Palenque for engaging in monopolistic practices, consisting of price manipulation and sharing out the market in the municipality of Palenque, in the southern state of Chiapas.The violations would have occurred between 2014 and 2017, setting the price for one kilogram of tortilla at between 10 and 17 pesos. The collusion was recorded in various minutes kept by the associations, in addition to publicly announcing the agreed prices in establishments and “tortillerías.”

The Commission also accused the associations of engaging in market sharing, establishing minimum distances between tortillerías and an obligation among its members to respect the agreed sales areas. Consequently, COFECE fined 5 individuals, as well as the 3 participating organizations, for a total of $2,101,634 pesos (approximately US $ 110,000).

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