COMMON QUESTIONS AND ANSWERS

Enforcement, Remedies and Penalties

Mexico

ENFORCEMENT, REMEDIES AND PENALTIES

Mode of operation

• Different countries have different ways of controlling anti-competitive behavior. Which of the following best describes your approach?
  We tend to prohibit specified anti-competitive activities.

Sanctions

• In this section we wish to examine the sanctions which are available to the competition agencies and/or courts to deal with contraventions of the law.
  
  30A.What is the maximum fine chargeable for the various offenses against your competition law?
  
  Please refer to Articles 35 and 37 of the law.
  
  Fines are indexed to the minimum general wage prevailing in the Federal District (mgwfd). The highest fine imposed for engaging in absolute monopolistic practices amounts to 375,000 times the mgwfd, this is approximately equivalent, as of November 2004, to US$1.4 million while the maximum fine chargeable for relative monopolistic practices amounts to US$ 847,715.
  
  Individuals may be charged up to 7,500 times the mgwfd (approx. US$28,257). Submission of false information is punished similarly.
  
  For failing to notify a concentration a maximum fine of 100,000 times the mgwfd, (US$376,000) may be applied, and for participating in a forbidden concentration the fine may amount to 225,000 times the mgwfd (US$ 847,000).
  
  Finally, in particularly serious infringements, the Commission may impose alternative fines amounting to the higher value among 10 percent of the violator's annual sales or its assets value.
  
  30B. Are any other criminal penalties, including imprisonment, available for offenses against the competition law?
  
  Please tick one box below: Yes.
  
  Article 24 (III) of the FLEC empowers the Commission to report to the Federal Prosecutor criminal practices regarding competition matters, which are established in the Federal Penal Codes and can lead to criminal actions.
  
  30C. Does the competition agency have the power to order restitution or payment of damages to affected parties?
  
  Please tick one box below: No.
  
  Please specify the law and the provision of that law.
  
  Article 38 of the law states that economic agents that prove they have sustained damages and loss as a result of a monopolistic practice or illicit concentration, may file a legal claim to obtain compensation.
  
  30D. Does the legislation provide for orders to be made by government or other bodies to prevent repeated contraventions?
  
  Please tick one box below: Yes.
  
  Please specify the law and the provision of that law.
  
  Articles 35 and 36 of the law.
  
  What form of orders can be made, and by what body?
  
  All resolutions are carried out by the Federal Competition Commission.
  
  In case of repeated offences a recidivist is liable to double the fines established in article 35 of the FLEC.
  
  30E. What other penalties or sanctions are available?
  
  The Commission can prohibit, order a divestiture or subject concentrations to certain conditions. It can also order that a practice be suspended.

Private parties

31A.Do private parties have the right to take action against prohibited activities in the absence of action by the enforcement agency?

Please tick one box below: No

31B.What damages and remedies are available to private parties?

Single damages.- Article 38 of the law states that economic agents that prove they have sustained damages and loss as a result of a monopolistic practice or illicit concentration may file a legal claim to obtain compensation.

Cease and desist orders may be issued by the Commission regarding monopolistic practices or illicit concentrations. In addition, partial or total divestiture of the latter may be ordered.

31C. Can private parties seek orders to prevent contravention?

Please tick one box below: No.

Foreign complainants

• Are there any restrictions or special limitations where the complainant is not domestically based?
  
  Please tick one box below: No.
• Are there any restrictions or special limitations where the complainant is a foreign government? And what are they?
  
  Please tick one box below: No.