Mexico: COFECE to probe market sharing in Bus passenger transport sector

Four bus companies in Mexico account for 95.2% of bus routes in the country, in most cases without direct competitors, said the Federal Commission of Economic Competition (COFECE).
 
According to the regulator’s recent research, the situation has caused a lack of competition which, if restored, could amount to a 40% reduction in normal prices.
 
The study registered 5,877 routes, with 76.8% of them being controlled by a single economic agent, while in 85.7% of these had enough demand to justify more competitors.
 
COFECE’s Alejandra Palacios clarified that, while some operators maintain some presence in the southwest, others do so in the northwest or central region, so that the main groups avoid competition. In this sense, the official singled out the concessions granted by the State as the main problem. “Most of the terminals are in private hands, 820 of 899 terminals are concessioned. If I own the terminal, the natural thing is to not let new players enter. This is a regulatory failure that the SCT (Ministry of Communications and Transportation) should address. ”
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