Mexico: Shipping companies fight COFECE sanctions

Roberto Chami Lizárraga, legal representative for the Golfo Transportación shipping company, has said the company will appeal the sanctions imposed by the Federal Competition Commission (COFECE) over alleged monopolistic conduct. The fine amounts to $45 million pesos ($2.2 million USD).

Lizárraga criticized COFECE’s decision, particularly the agency’s principal argument for determining monopolistic practices: the absence of any price adjustment after the arrival of a new major competitor, Barcos Caríbe – a company recently outed as being owned by former Quintana Roo state governor Rooberto Borge Angulo.

On November 14 COFECE determined that Golfo Transporación, Naviera Ocean GM and Naviera Magna had engaged in serious violations of competition law in their maritime passenger transport services business. “Elements such as idle capacity indicate that these economic agents did not act independently, because if they had they would have seen the incentive to lower their prices or adjust their schedules, competing for more rewarding time slots in order to gain greater market share. However, in no instance did they break their symmetry in prices or scheduling, which can only be explained by the presence of some agreement…”

Sources close to the affected shipping companies have said that the process started by COFECE has indirectly benefitted Barcos Caríbe. They accuse the company of breaking into the market with far lower prices for the sea crossing between popular tourist resorts of Playa del Carmen and Cozumel island, enjoying unfair advantages from being owned (and, they say, effectively subsidized) by state authorities close to the former governor.

Full Content: El Economista

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