The Federal Economic Competition Commission (“COFECE”) has been very keen and has taken strong measures against allegedly illicit practices in the non-residential real estate leasing market in Mexico.
On January 30th, COFECE published a note stating forth that it has notified different companies and individuals for alleged absolute monopolistic practices related to price manipulation in the non-residential real estate leasing market in Mexico.
These behaviors were considered in a possible liability notice (dictamen de probable responsabilidad) issued by the Investigating Authority of COFECE, within the administrative file IO-004-2020, after it concluded its investigation.
These notifications are the beginning of the trial-stage procedure. The probable offenders will have the opportunity to state their position, present evidence related to the allegations, and make arguments.
Subsequently, COFECE's Plenary will resolve per the applicable antitrust law. If the existence of absolute monopolistic practices is confirmed, the Commission could impose sanctions according to applicable law.
COFECE emphasizes the importance of the non-residential real estate sector in the Mexican economy, noting that the anticompetitive conduct can affect not only businesses leasing these spaces but also have repercussions on employment and the prices of goods and services.
Given the relevance of the non-residential real estate sector and its economic impact, COFECE stated that it will continue to focus its efforts on identifying and prosecuting anticompetitive practices in this area, especially in the recovery phase following the effects of the COVID-19 pandemic.
COFECE invited anyone with information about illegal competition practices to file complaints with the referred Commission, reaffirming its commitment to monitoring and promoting competition in the markets.
Our team of specialists in economic competition is at your disposal to address any doubts regarding this matter.
This newsletter was prepared by José Antonio Postigo-Uribe ([email protected]), Marisol González-Echevarria ([email protected]), José Miguel Ortiz-Otero ([email protected]), Max Ernesto Hernández-Ernult ([email protected]), Marisa Romero-Martínez ([email protected]), Tania Elizabeth Trejo-Gálvez ([email protected]), and Jesus Alonzo González-Hermosillo ([email protected]).
