The Federal Commission for Economic Competition (Cofece) has a “solid” structure and a balanced investigation team to initiate the eventual purchase of Banamex; However, the fact that President Andrés Manuel López did not make the appointment of three missing commissioners could provoke revenge in the Mexico, United States, Canada Treaty (T-MEC) in terms of competition, as well as create conditions for a possible financial monopoly.
Specialists in economic competition and law, ensure that Banamex’s mega-operation is placed at an ideal time for the Q4 government to benefit from the strengthening of Cofece for healthy competition and the appointments of the three of seven commissioners, who do not in the posts appointed, to send. .
Cofece is currently working with four commissioners, two of whom are economists and the other lawyers, creating balance to handle the merger analysis as soon as the Banamex buyer notifies the Commission of its acquisition interest, says Miguel Flores, chairman of the company. ICC Competition Commission.
“With the four commissioners you can decide on your main issues, such as sanctioning monopolistic practices or resolving merger issues, these functions are not affected,” said the former Cofece commissioner. However, he acknowledged that only some Cofece statements, such as essential input. , the declaration of barriers to competition or changes to regulatory provisions may be affected because a quorum of 5 commissioners is required. “Institutionally, Cofece is strong, not diminished, only affected in certain functions and I see no concern at this moment of weakness,” Flores said.
Once the ultimate buyer of Banamex, either per business unit or as a whole, has to notify Cofece -compulsory-, a concentration process that can be solved by the institution with four elements, “but there are issues where there will be problems such as in the analysis of powers in regulated sectors or in investigations into regulatory barriers, because there are determinations that require the favorable vote of 5 commissioners, ”warned Javier Núñez, former Cofece commissioner.
“The institution is not headless … Cofece did not stop working. The substantive areas have the operational people, although matters are still being relieved, ”the teacher told the Colegio de México.
However, he acknowledged that an “incomplete” commission could cause complications, such as retaliation for competition issues by the United States, Núñez warned.
He explained: Cofece and the Federal Telecommunications Institute (IFT) are important institutions that are already generating noise, and there may be a breach of the T-MEC because commissioners have not been appointed.
“Not being in a hurry can generate alarm signals for us in the USA. “The issue of competition is included in the T-MEC, although this agreement does not speak of an autonomous agency, but rather the need for the Mexican government to promote an environment of competition,” said the former Cofece commissioner.
According to Miguel Flores, also a former commissioner, Cofece has a study of the financial sector, in which there are certain sectors in which competition needs to be strengthened, although it is progressing. “Perhaps this transaction can further motivate competition. AMLO’s government is wasting the opportunity to have a very important ally to have a socially responsible economy “, lamented the member of the ICC.
Reference-www.eleconomista.com.mx