Mexico's competition authority – the Comisión Federal de Competencia Económica (Federal Economic Competition Commission, or COFECE) – has intensified its enforcement posture across multiple sectors. Companies that assumed a light-touch regime are now facing formal investigations, steep penalties, and heightened scrutiny of market dominance claims. The shift is not theoretical: enforcement actions are ongoing, and non-compliant businesses risk fines that can reach a substantial share of annual revenues.
Mexico's competition legislation empowers COFECE to investigate cartel conduct, abuse of market dominance, and transactions requiring merger notification. Penalties for violations can be severe, reaching into the billions of pesos for the most serious infringements. International companies operating in Mexico should treat competition compliance as an immediate operational priority, not a deferred review item.
This alert explains the current enforcement environment, identifies which business categories face the greatest exposure, and sets out five immediate actions international companies should take now.
What has changed – the current enforcement environment
COFECE has sharpened its focus on three areas: cartel conduct, abuse of market dominance, and merger notification failures. Each carries distinct exposure under Mexico's competition legislation.
Cartel enforcement has become the headline priority. Coordination of prices, allocation of markets, restriction of output, and bid-rigging are treated as absolute prohibitions. The competition authority has expanded its investigative toolkit. Dawn raids are now conducted with greater frequency. Digital communications – including messaging applications – are within scope. Companies that assumed informal coordination arrangements carried low detection risk should revise that assessment immediately.
Mexico's leniency programme – the formal mechanism under which a party that self-reports cartel conduct may obtain full or partial immunity from penalties – has become a genuine enforcement instrument. COFECE has confirmed that it accepts leniency applications and that early applicants receive the most favourable treatment. The programme creates a structural incentive for cartel members to defect. That dynamic increases detection risk for all participants, not just the one who approaches the authority first.
Market dominance investigations have also increased. Companies with significant market share in concentrated sectors face scrutiny of pricing practices, exclusivity arrangements, and refusals to deal. The competition authority is not required to demonstrate intent. Conduct that has the effect of foreclosing competition is sufficient to trigger an investigation under Mexico's competition legislation, regardless of the business rationale advanced by the company.
On merger notification, COFECE has signalled that it will pursue post-closing enforcement where parties failed to notify transactions meeting the jurisdictional thresholds. The thresholds are defined by reference to the value of the transaction and the combined Mexican turnover of the parties. Crossing these thresholds without prior clearance exposes the parties to fines and, in serious cases, divestiture orders. For parallel enforcement trends in the United States, which frequently affect cross-border transactions, international companies should also review their North American exposure concurrently.
Who is affected – threshold criteria and business categories
The enforcement intensification affects a broad range of business categories. However, certain sectors face heightened exposure based on COFECE's recent investigative priorities.
High-exposure sectors include telecommunications, financial services, energy, retail distribution, pharmaceutical supply, and digital platforms. Companies with operations across these sectors – particularly those with market-wide pricing visibility or distributor networks – should treat the current environment as active risk rather than background regulatory noise.
Threshold criteria for merger notification apply to transactions where: the combined value of the deal exceeds the prescribed threshold under Mexico's competition legislation. or the parties' Mexican revenues. Assets. Alternatively, share accumulation triggers the relevant filing requirement. These thresholds are adjusted periodically. Companies planning acquisitions, joint ventures, or asset transfers in Mexico should verify current thresholds before signing, not after closing.
International companies with Mexican subsidiaries or distribution arrangements are directly within COFECE's jurisdiction. The competition authority applies its rules to conduct that affects the Mexican market, regardless of where the decision was made. A pricing decision taken in a European or US headquarters that aligns the Mexican subsidiary's pricing with regional competitors can constitute a cartel infringement under Mexican competition legislation.
Companies that already have established competition law counsel in Mexico are better placed to assess whether existing commercial arrangements require amendment before a formal investigation commences.
For businesses facing related enforcement or contractual disputes arising from competition investigations, the interaction with corporate disputes in Mexico can be significant – particularly where third-party damages claims follow a COFECE finding.
To receive an expert assessment of your company's competition exposure in Mexico, contact us at info@ferrazwhitmore.com.
What to do now – immediate action items
International companies operating in Mexico should take the following five steps without delay.
- Audit commercial arrangements for cartel risk. Review distributor agreements, pricing policies, trade association memberships, and any communication channels with competitors. Identify conduct that could be characterised as coordination, even if it was not designed as such.
- Assess leniency programme eligibility. If internal review uncovers conduct that may constitute a cartel infringement, obtain legal advice on whether a leniency application is appropriate. The benefit of early disclosure is substantial. Delay forfeits priority status.
- Verify merger notification obligations. If your company has completed or is planning transactions in Mexico, confirm whether the jurisdictional thresholds are met. This applies to acquisitions of minority stakes as well as full mergers.
- Review dominance-adjacent practices. If your company holds a significant market share in any Mexican sector, examine exclusivity clauses, loyalty rebates, refusal-to-supply policies, and pricing structures for practices that may constitute abuse of market dominance under Mexico's competition legislation.
- Establish an internal competition compliance programme. COFECE treats the existence of a credible compliance programme as a relevant factor in enforcement proceedings. Documented training, escalation procedures, and internal reporting channels reduce both the probability of infringement and the severity of penalties if an investigation proceeds.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our competition law practice covers enforcement defence, merger clearance, leniency applications, and market dominance assessments across Latin American and Iberian markets, with particular depth in Mexico and Brazil. Our team combines Portuguese civil law expertise with English common law tradition – an advantage in cross-border matters where enforcement in one jurisdiction triggers parallel proceedings in another. We work with international companies, institutional investors, and in-house legal teams who need results-oriented competition counsel across multiple legal systems. As an international law firm advising on competition matters in Mexico, Ferraz & Whitmore supports clients from investigation through to full resolution. To discuss your situation and receive a preliminary review of your competition exposure in Mexico, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.