Most-Favored Nation Clauses: A Business Need But Unresolved Topic in Mexico

By Luis Omar Guerrero-Rodríguez and Martín Michaus-Fernández

Most-favored nation clauses (“MFN”) have become a topic of concern for competition authorities worldwide. Competition authorities around the world have rendered some decisions as to what extent those clauses could harm competition and if sanctioned whether they should be analyzed under a per se rule or rather under a rule of reason. However, due to the features and uncertainty regarding MFN clauses, it is not clear to which type of behavior MFN clauses could fall according to the horizontal and vertical conduct segmentation provided by the Mexican legislation.