MEXICO Law and Practice Contributed by: Alejandro Mendiola Diaz, Pedro Isaac Alcalá Berhouague and Benjamín Uriel Salinas Morales, Nader, Hayaux & Goebel
Criminal and Administrative Liability Cartel conduct may also trigger criminal liability. The agencies can file complaints with the Fed - eral Attorney General’s Office, and individuals found guilty may face prison terms ranging from five to ten years, in addition to any administra - tive fines. Entities involved in cartel conduct may be fined up to 10% of their annual income. In addition, individuals may be disqualified for up to five years from holding executive, managerial, or decision-making roles in companies operating in related markets in addition to administrative fines. If the conduct is repeated, the fine may be dou - bled due to recidivism. Judicial Review and Compensation Specialised courts in competition, telecommuni - cations, and broadcasting review the agencies’ decisions. Their rulings can be appealed before specialised federal courts of appeals. Claims for damages and lost profits may only be brought once the agency’s decision becomes final. Institutional Reform and Expected Changes As noted in 1.1 Legal Bases , a constitutional reform was approved in December 2024, which provides for the creation of a new competi - tion authority under the Federal Executive. The implementation of this reform is pending, as it requires the enactment of new secondary leg - islation, including a new Competition Law and a new Telecommunications Law, which remain under discussion in the legislature. 1.3 Private Enforcement Private enforcement in Mexico is limited to civil claims for damages and lost profits resulting from cartel conduct. These actions – either indi -
vidual or collective – can only be filed once the competition authority’s decision has become final. This type of civil claims remains uncom - mon in practice. Affected parties may bring civil claims before the specialised competition courts to seek com - pensation, but they cannot independently initi - ate proceedings to investigate or sanction cartel conduct. Those authorities remain exclusively with the competition authorities. 1.4 “Cartel Conduct” Definition of Cartel Conduct Cartel conduct – legally known as absolute monopolistic practices – is strictly prohibited under Mexican law and is considered illegal per se. This means the conduct is presumed unlaw - ful regardless of its actual effects on the market. There are five types of conduct explicitly defined as cartel behaviour. • Price fixing – agreements to fix, raise, co- ordinate or manipulate the sale or purchase price of goods or services. • Output restriction – agreements to limit the production, distribution or acquisition of goods or services. • Market allocation – dividing customers, suppliers, geographic areas or time periods among competitors. • Bid rigging – co-ordinating bids or absten - tions in tenders, auctions or similar process - es. • Information exchange – sharing information with the purpose of facilitating any of the above conduct. These practices are null and void under the law and can lead to severe administrative and crimi - nal sanctions.
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