This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Registered in England and Wales. Number This is the first fine ever imposed by the Mexican Authority on a notary public for gun-jumping. As provided in Article 86 of the Mexican Competition Law, mergers reaching the legal thresholds must be notified before Cofece.
This applies to i transactions amounting in Mexico the equivalent of 18 million times the minimum general wage in force for the Federal District EUR 60 million, approximately or more [1] ; ii transactions involving acts with an accumulation of at least 35 per cent of the assets or capital stock of an economic agent, whose assets in Mexico or annual sales originated in Mexico involve more than the equivalent to 18 million times the minimum general wage in force for the Federal District EUR 60 million, approximately ; or iii transactions involving acts with an accumulation in Mexico of assets or capital stock higher than 8.
Under the Mexican Competition Law, the parties are bound to act independently as long as clearance and closing does not occur. Exchange of sensitive information among the parties, which may lead to anti-competitive conduct is also prohibited and would be investigated as a cartel violation.
Penalties may be imposed not only to the parties under the transaction, but also to those individuals ordering or executing the transaction. Indeed, as a result of the recent constitutional reforms i. This decision comes on the heels of a MXN This decision makes it clear that Cofece will not hesitate to impose severe fines for violations of the Mexican Competition Law, even if the infringing party voluntarily informs the Commission of the transaction and the transaction raises no competition issues, therefore strengthening the need for companies and individuals involved in a transaction to strictly comply with the requirements as foreseen by the applicable law and to refrain from gun-jumping.
These fines form part of the increasing trend for antitrust authorities around the world to punish gun-jumping practices. Posted by Marta Loubet on 15 June Share this article. Marta Loubet. Related Articles. Can Cofece unilaterally regulate services?
