Agreement to contain price increases would violate Competition Law


Agreements between competitors not to raise prices of certain products in the basic basket may violate the Federal Economic Competition Law (LFCE), even when their purpose is to contain inflation and the erosion of purchasing power, warned the International Chamber of Commerce (ICC).

The international organization recommended that the Mexican government turn to the Federal Economic Competition Commission (Cofece) to avoid violations of the LFCE, since its anti-inflationary program would raise guaranteed prices for up to 24 products in the basic basket.

In this regard, he recalled that Article 9 of this law states that, in order to set official prices or maximum prices for a product, Cofece must make a prior declaration that there is no effective competition in the market in question or there is distortion in the market that prevents it.

Until then, the Ministry of Economy or the President of the Republic may summon the companies that produce, distribute, and market the products to inform them that due to a certain market failure, the maximum price will be temporarily set, taking into account their costs and margins. reasonable profit.

“In case of omitting this step, the companies would manipulate the price and violate Article 53 of the LFCE, which is one of the most serious offenses that is sanctioned with up to 10% of the companies’ income, regardless of criminal responsibilities. ”, warned ICC

The ICC recommended that both the government and the companies admit the risks and implications of meeting to discuss the problems related to the rise in prices, even when there is a laudable intention to seek to benefit the population.

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