02 Feb Mexican antitrust regulator has commenced a procedure to determine sanctions for the possible commission of absolute monopolistic practices (cartel) within the real estate sector of non-residential leases.
The investigative authority of the Federal Economic Competition Commission in Mexico (“COFECE”) issued an opinion where it determined that certain individuals and entities may be responsible for the commission of absolute monopolistic practices (cartel) within the non-residential real state sector. This derives from and investigation commenced in 2020 due to the possible manipulation of prices within the market of leases of non-residential properties in Mexico.
COFECE has stated that the negative effects of the anticompetitive conducts so far detected in the real state sector may have reached not only the businesses that rent non-residential spaces, but also thousands of jobs, as well as prices of goods and services, may have been affected. It is estimated that leading real estate trusts and lease management companies may be among the probable responsible agents.
Upon concluding its investigation, the COFECE initiated a procedure in order to, after giving the probable responsible parties the right of defense, impose the relevant sanctions that may consist in fine up to the equivalent of the 10% of respective economic agent revenue, regardless of any applicable civil and criminal liability.
At Cuesta Campos we have experience providing legal advice to companies regarding economic competition regulations in Mexico and with the implementation of antitrust compliance programs, as well as to timely respond to requests of information made by the antitrust authority during investigative procedures.
For any question or comment regarding the above, you may contact the following attorneys of our firm:
Contact
Azucena Marín
Héctor Mercado
Hugo Cuesta Tamayo
THE ABOVE IS PROVIDED AS GENERAL INFORMATION PREPARED BY PROFESSIONALS WITH REGARD TO THE SUBJECT MATTER. THIS DOCUMENT ONLY REFERS TO THE APPLICABLE LAW IN MEXICO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE ACCURACY, NO RESPONSIBILITY CAN BE ACCEPTED FOR ERRORS OR OMISSIONS. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE RELIED ON AS LEGAL, ACCOUNTING OR PROFESSIONAL ADVICE BEING RENDERED.