Exemptions from the Provisions of the Competition Law

Mexico

EXEMPTIONS FROM THE PROVISIONS OF YOUR COMPETITION LAW

Actions authorized under other types of law

• If there is a potential conflict between your competition law and other laws, how do you determine which law takes precedence?
  
  In order to determine which law takes precedence the following criteria is considered:
1. Which law has more hierarchy in event of a potential conflict between laws.
2. Which law is more specific regarding the matter under investigation.
3. Which law is has been enacted first.

An "amparo" appeal may prevent the application of the FLEC on the grounds that the constitutional rights of the defendants are not duly observed in the procedures.

Import Cartels or Agreements Between Importers

• Does your competition law exempt or partially exempt agreements aimed at controlling the flow of imports into your country?
  
  Please tick one box below: No.

Export Cartels or Agreements Between Exporters

• Does your competition law exempt or partially exempt agreements between exporters from your country?
  
  Please tick one box below: Yes.
  
  Please specify the law and the provision of that law.
  
  Article 6 of the law.
  
  What type of behavior is this provision aimed at and what is the nature of the provision?
  
  Export cartels conformed by associations or cooperatives which do not trade such goods within Mexican territory conditioned to the fulfillment of certain strict requirements.

Specific products or industries

• Are there any specific products or industries (e.g. agriculture, international shipping) which are exempted or partially exempted from your competition law?
  
  Please tick one box below: Yes
  
  Please list the sectors exempt or partially exempt and the nature of the exemption.
  
  Sectors which area exempted:
  
  The coinage of money, the mail, the telegraphs, radiotelegraphs and the issuance of paper money by the central bank, petroleum, and other hydrocarbons, basic petrochemicals, radioactive materials and the production of nuclear energy, electricity, and activities expressly set forth in the laws issued by Congress.
  
  Nature of the exemption (please also specify the law where this can be found)
  
  Article 28 of the Political Constitution of the Mexican United States reserves the above mentioned areas of economic activity, considered to be "strategic areas", for the state. Under the FLEC these areas are not considered to be monopolies. Nevertheless, according to article 4 of the FLEC, any state enterprise is subject to the Federal Law on Economic Competition when engaging in activities beyond the scope of such exclusive areas.

Small business

• Are there any exemptions or partial exemptions from your competition law for small and medium size businesses?
  
  Please tick one box below: No.

Rationalization cartels or agreements

• Rationalization cartels are agreements between firms, and authorized by the government, to close down inefficient plants, reduce capacity and reorganice production in order to increase overall industry efficiency and performance.
  
  Does your competition law contain any exemptions or partial exemptions for rationalization cartels? No.

Depression cartels or agreements

• Depression cartels are agreements between firms and authorized by the government to reduce production to meet a temporary downturn in the market. Does your competition law contain any exemptions or partial exemptions for depression cartels?
  
  Please tick one box below: No.

Government agencies

• Are Government agencies exempted or partially exempted from your competition law?
  
  Please tick one box below: Yes.
  
  Please specify the law and the provision of that law.
  
  Article 28 of the Federal Constitution and article 4 of the FLEC
  
  And what is the nature of the exemptions?
  
  Please refer to question 16.

Practices authorized by administering bodies

• Is there any provision for competition agencies or the relevant ministers to exempt specific activities from the competition law?
  
  Please tick one box below: Yes.
  
  Please specify the law and the provision of that law.
  
  Article 7 of the law.
  
  Please specify the criteria which are applied in deciding whether to exempt activities or not.
  
  Article 7 of the law describes the sole exemption which refers to the faculty granted to the Trade and Industrial Promotion Ministry to fix maximum prices for products and services essential for the domestic economy or for mass consumption.

Intellectual property

• Does your competition law contain any exemptions for actions relating to the protection of intellectual property rights?
  
  Please tick one box below: Yes.
  
  Please specify the law and the provision of that law.
  
  Article 5 of the law.
  
  And what is the nature of this exemption?
  It establishes that "privileges granted to authors and artists for the production of their work for a given period of time, and those granted to investors and individuals perfecting an improvement for the exclusive use of their inventions, do not constitute monopolies."

Labor markets

• Does your competition law exempt or partially exempt labor market activities?
  
  Please tick one box below: Yes.
  
  Please specify the law and the provision of that law.
  
  Article 5 of the FLEC and Article 28 of the Constitution.
  
  And what is the nature of the exemptions?
  
  Article 5 of the law only exempts trade union, by establishing that they do not constitute monopolies. However, commercial activities carried out by such organizations are not exempted.

Other exemptions

• Are there any other exemptions from your competition law other than those outlined above?
  
  Please tick one box below: No.
  
  There are no partial exemptions within the statute of the FLEC. All economic agents are subject to equal coverage under the law.