Mexico’s COFECE Probes Possible Monopoly In Electric Sector

The Federal Economic Competition Commission (Cofece) initiated an investigation into monopolistic practices relating to the generation, wholesale market and supply of electrical energy and associated products in Mexico.

The investigation stemmed from a complaint filed with the regulatory body, it said in a statement.

Relative monopolistic practices are acts, contracts, agreements or procedures carried out by one or more economic agents with substantial power and that have, or may have an effect of unduly displacing other market participants, substantially preventing their access, or establishing exclusive advantages in favor of one or more economic agents.

The period for this investigation is up to 120 business days, counted from March 26, 2021, the date on which the investigation began, which may be extended for the same period up to four times. If at the end of the investigation no elements are found that presume the realization of said anticompetitive practice, the Plenary of the Cofece would resolve its closure. In the event that elements are found that presume a violation of the law, those who are likely responsible will be called to a procedure followed in the form of a trial to present their defense.

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