Price fixing in air and maritime cargo deconsolidation services

Mexico


On October 6, 1994 an ex officio investigation was begun into possible absolute monopolistic practices in the provision of maritime cargo deconsolidation services. During this investigation, the Commission also detected indications of anti-competitive behavior in the deconsolidation of air cargo at the Mexico City international airport. As a result, a second investigation was initiated on May 30, 1995. In both proceedings, the Mexican Cargo Agents Association (Asociaci Mexicana de Agentes de Carga, A.C., AMAC) was named as the defendant.

In the air cargo case, the AMAC had issued a circular in November 1991, informing its members of the rates to be charged for their services in the future. Again, in July 1994, it issued a circular recommending its members to charge $50 per ton or cubic meter of maritime cargo deconsolidated. The following elements are of particular relevance in connection with these facts:

The price fixing agreement announced in the 1991 circular was prior to the enactment of the competition law. The collusive rate for air cargo deconsolidation proposed in the circular remained in force after the law came into force on July 11, 1993. The recommendation regarding the rate for deconsolidating maritime cargo, contained in the 1994 circular, was in breach of the law.

The investigations revealed that in both instances the AMAC served as the vehicle through which the members of the association, who were competitors, agreed on prices for air and maritime cargo deconsolidation services. On account of this, the Plenum of the Commission ruled that:

The collusion to fix prices for air cargo deconsolidation services, contained in the 1991 circular, was not punishable because it had been reached prior to the enactment of the law. However, maintaining this collusion after the enactment of the law was an absolute monopolistic practice, forbidden under article 8 and covered by section I of article 9 of the law. The collusion on fees for deconsolidating maritime cargo was also found to be in breach of the law, pursuant to the articles quoted in the previous paragraph. The Plenum of the Commission therefore resolved: To impose on the AMAC the applicable fines for the infractions committed in connection with maritime and air cargo deconsolidation services. To order the AMAC to refrain from those absolute monopolistic practices, to revoke the corresponding agreements and circulars, and to inform its members of the risks inherent in a repeat offense.