Heineken Mexico fined for noncompliance

For failing to comply with legal commitments regarding the Federal Economic Competition Law, Heineken Mexico was fined for MXN$11,789,000
File photo/EL UNIVERSAL
17/12/2017
14:51
Miguel Pallares
-A +A

The Federal Economic Competition Commission (COFECE) has imposed a fine of 11 million 789 thousand Mexican pesos to Brewery Cuauhtémoc Moctezuma (CCM), now Heineken Mexico, for the noncompliance of commitments in favor of competition in the Mexican market.

In June 2010, several companies filed a complaint before the  Federal Competition Commission, stating that Heineken Mexico and Modelo Group were performing monopolistic tactics within the Mexican beer market, specifically in several establishments across Mexico City, Juárez City, Guadalajara, Hermosillo, León, Matamoros, Mérida, Monterrey, Morelia, Nuevo Laredo, Reynosa, San Luis Colorado, Tijuana, and Veracruz.

“The plaintiffs declared CCM and Modelo Group were engaging in conducts which had the aim, or possible aim, of preventing the entrance of other participants into the market, such as giving incentives in kind and cash to several establishments under the condition not to sell products of the competition,” stated the authority.

During the hearing last November 16, 2017, the COFECE determined CCM failed to comply with the determined terms for the enablement and monitoring of a telephone line 01 800, and with the terms to present the reports of the said telephone number.

Given the noncompliance with the commitments accepted by CCM, established to verify the compliance of the obligations, the COFECE has imposed an economic penalty to dissuade further non-compliances regarding the Federal Economic Competition Law, arising from the non-compliance of the commitments agreed by and between the economic agents and the corresponding authority.

According to Heineken Mexico, they claim they are adhering to the resolution of the authority and “will use all corresponding legal resources to solve the dispute which is still subjected to the final decision of the court.” The company added Heineken Mexico “trusts” the resolution will be in their favor, given they have “complied with all the commitments referenced.”

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