The Federal Economic Competition Commission (“COFECE”), published on November 23, 2022, the initiation of the investigation with file number IEBC-004-2022, for possible barriers to competition and essential inputs in the distribution and commercialization of corn, as well as the production, distribution and commercialization of corn flour and related services in the national territory.
Regarding this investigation, COFECE explained that this market is particularly important because corn and corn flour are necessary inputs for the production of tortillas, which form an essential part of the daily diet of Mexicans, since around 98.6% of the population consumes it and it is included in the basic basket.
In accordance with the Federal Economic Competition Law, once the investigation is concluded and sufficient elements are found to determine the existence of barriers to competition and free competition, COFECE may: (i) order the removal of barriers that unduly affect the process of competition and in case of non-compliance, impose a sanction of up to 10% of the income of the economic agent, (ii) issue recommendations to public authorities, (iii) determine the existence of essential inputs and, where appropriate, issue guidelines for its regulation, and (iv) order the disincorporation of assets, rights, social interests or shares.
In this investigation, COFECE may request information in writing, carry out verification visits, as well as summon economic agents that participate in or are related to said market to testify.
For more information contact:
Juan José López de Silanes | Partner Basham, Ringe and Correa | firstname.lastname@example.org