10 Competition reforms

The President’s proposed anti-trust reform, like many of his recent announcements, has 10 points:

  1. Make it possible to terminate proceedings before the Federal Competition Commission (Cofeco)  by mutual agreement, rather than engage in endless litigation. Provide incentives for cooperation.
  2. Provide for oral argument.
  3. Simplify the notification for market concentrations. In addition, make it easier to approve restructurings and mergers.
  4. Restructure Cofeco to make it more efficient and transparent.
  5. Empower Cofeco to investigate and sanction anti-competitive practices by government agencies and enterprises.
  6. Give Cofeco subpoena powers; currently it relies on companies to provide information voluntarily.
  7. Strengthen the sanctions available. The Commission would be able to levy fines of up to 10% of a company’s annual revenues.
  8. Simplify the determination of whether a company (or group of companies) has monopoly or oligopoly power.
  9. Empower Cofeco to issue preventive orders to stop probable anti-competitive behavior, before a final ruling is made.
  10. Empower Cofeco to make company inspections.

(Presidencia 4/6)

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