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April 9, 2010

Changes to Mexico's Competition Law May be Coming Soon

Posted by D. Daniel Sokol

See here.

April 9, 2010 | Permalink

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The executive branch initiative to change Mexico's Competition Law have several wrong and worries elements: i) the incorporation of the joint dominance concept when the European experience shows more problems in deal with the application of such imprecise concept; the merger and collusion control is enough, the only certain effect is a hostility device to natural oligopoly industries, ii) the fine criteria to fix a percentage to the most broad total income definition without any criteria about affected market or illegal profits is a real threat to multi product firms and conglomerates and iii) to grant injuctive relief during the investigation period, such device is a incentive to use the Law to anticompetitive objectives, if a conduct is pro competitive a firm will looking for injuctive relief and damage rivals with no compensation at all after the investigation found no anticompetitive effect.

I hope the such initiative will be blocked or change in the legislative branch.

Posted by: RAMIRO TOVAR LANDA | Apr 11, 2010 9:20:42 AM

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