Mexico City. The Federal Economic Competition Commission (Cofece) has launched an investigation to determine the existence of illegal agreements between competitors in the market for the manufacture, distribution, marketing and acquisition of fragrances and fragrance ingredients in the national territory.
In a statement, the antitrust agency explained that these are used to give scent to cosmetics, personal care products, perfumes, cleaning products and food, among others; products widely used by all Mexican consumers.
He recalled that during the first half of 2023, it became public that various competition agencies around the world had begun to investigate the existence of an anti-competitive agreement in the fragrance market that could have had consequences in various regions of the world.
In this context, the company said it is in communication with the United States Department of Justice and the Competition and Markets Authority of the United Kingdom, as it has found evidence of a probable illegal agreement in this market that could have affected Mexicans.
“Mexico is immersed in a globalized economy, so coordination between competition agencies around the world is a pillar of the fight against collusive agreements that directly affect consumers, giving rise to comprehensive and more effective actions,” he said.
For this reason, he added, deepening international cooperation is one of the central axes of the new phase of Cofece’s competition policy.
He emphasized that this ex officio investigation, identified with file number IO-002-2024, should not be understood as a prejudgment, but rather as an action by the authority to verify compliance with the Federal Economic Competition Law (LFCE).
The term for this inquiry is up to 120 working days, counted from the date of commencement of the investigation, which may be extended by the same period up to four times. If at the end of the investigation no elements are found that presume the carrying out of said anti-competitive practice, the Plenary will decide to close it.
If elements are found that suggest a violation of the LFCE, those found responsible will be called to a trial-style procedure to present their defense.
According to the LFCE, if the existence of an absolute monopolistic practice is proven, economic agents could be fined up to 10 percent of their income. Those who have assisted, encouraged or induced the carrying out of these practices could also be financially sanctioned. Natural persons who have participated in the celebration, execution or order of this type of agreement between competitors could be sanctioned with up to 10 years in prison.
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– 2024-08-21 20:28:55
