Mexican Competition Law — Insight on the May 2011 Reform


Between late April 2011 and early May 2011, the Mexican Congress and President Calderón completed the legislative process initiated in April 2010 to pass a bill of amendments to the Mexican Competition Law (the “Reform”).

The Reform, effective as of May 11, 2011, is sweeping in scope and historic in its reach. Key aspects of Mexican competition law and policy have been thoroughly revised. Further, the Mexican Competition Commission (Comisión Federal de Competencia, the “Commission”) has been vested with broader powers.

Among the most relevant highlights, the Reform provides for:

*Dawn Raids. - The Reform law facilitates unannounced Dawn Raids for the Commission to review any relevant information.

*Individual Amnesty. - The Reform makes it clear that individuals as well as companies can obtain amnesty by reporting practices

*Corporate Fines. - The Commission is allowed to impose higher fines including, among others, fines of up to 10 percent of a company’s taxable income for engaging in absolute monopolistic practices....

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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