MEXICO LAW AND PRACTICE Contributed by: Fernando Carreño, Sergio López, Michel Llorens, Andoni Garza and María García, Von Wobeser y Sierra
together with all the information legally required, then the authority will issue an official commu - nication denying the expedited review process and initiating a standard review process. This simplified procedure is not commonly used because, in many cases, it is more complicated to prove that the transaction does not have the aim or effect of diminishing, damaging or imped - ing competition and the authority is highly likely to consider that the legally required documents and information are incomplete. Thus, the under - takings are reluctant to follow this procedure and instead prefer to file their transactions through the standard process. The initial test employed by the authorities to analyse a transaction is the Herfindahl- Hirschman Index (HHI). Pursuant to the author - ity’s technical criteria, the transaction has a low probability of harming the market if: • the post-transaction HHI is below 2,000 points; and/or • delta is below 100 points as a consequence of the transaction. Additionally, when the transaction requires a more complex analysis, the authority can use other tools such as the SSNIP (Small but Signifi - cant Non-transitory Increase in Price) test. 4.2 Markets Affected by a Transaction Pursuant to the law, the following factors should be considered when analysing a transaction: • the definition of the relevant market; 4. Substance of the Review 4.1 Substantive Test
• the identification of the main undertakings that supply the market, an analysis of their power in the relevant market, and the degree of concentration in said market; • the effects of the transaction on other com - petitors or consumers of the goods or service in the relevant market, as well as with regard to other related markets and undertakings; • the equity participation of the involved parties in other undertakings and the equity partici - pation of other undertakings in the parties involved in the transaction – provided these undertakings engage, directly or indirectly, in the relevant market or its related mar- kets (when it is not possible to identify such participation, this circumstance must be fully justified); and • the information provided by the undertak - ings in order to demonstrate greater market efficiency as a result of the transaction and which will impact favourably on the process of competition and free market access. Although there is no de minimis criteria for ana - lysing a transaction, when the increase in market shares as a consequence of the transaction is low and the HHI criteria referred to in 4.1 Sub- stantive Test is met, the Authority may not carry out an in-depth competition analysis. 4.3 Reliance on Case Law It is common practice for the authority to refer to its own case law and that of other relevant jurisdictions (mainly the USA and the EU), if the assessment used to identify the relevant market is applicable to Mexico. The main competition authorities usually relied upon by the Mexican authorities are the EC, the US Federal Trade Commission, and the US Department of Justice.
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