Monday, December 28, 2015
Carlos Mena-Labarthe, Government of Mexico - Comision Federal de Competencia; Instituto Tecnológico Autonomo de Mexico (ITAM) offers Negotiation of Settlements and Remedies in Young Agencies: The Mexican Experience.
Young competition agencies face many challenges in order to consolidate a sound competition policy. This paper discusses remedies and its negotiation as valuable tools for emerging competition authorities. Along these lines, the paper will try to address the many edges that the settlement and negotiation of remedies entail. In the particular case of young competition agencies, their short expertise in these matters poses difficulties to set criteria and evaluate the effectiveness of the remedial measures imposed or accepted over the time. Furthermore, agencies will usually have to outweigh vital strategic institutional elements such as legitimacy, credibility and deterrence when implementing a settlement policy. The Mexican competition regime is relatively new, compared to other jurisdictions. This paper will take advantage of its experience to exemplify the arguments hereby established. The development of thorough analysis of the possible solutions to address competition concerns and the importance of setting standards in order to generate predictability and certainty are some of the challenges the Commission has faced. Moreover, the design and negotiation of remedies regarding the new market investigation procedures will also be discussed. Finally, the paper will conclude outlining some recommendations for young agencies to develop a long-run remedies and settlements' policy.