IMMUNITY PROGRAM

The Comisión Federal de Competencia (CFC), through this section, presents the main elements of the sanctions program reduction known as “Immunity Program”, which is set forth in article 33 bis 3 of the Ley Federal de Competencia Económica. The Immunity Program constitutes one of the main tools in the fight against absolute monopolistic practices.

This program emerges as part of 2006 reforms of the LFCE, and it was created to fight, in the most effective manner, against agreements among competitors known as “cartels” or collusions, which take place or effects in Mexican territory, in order to achieve greater benefits consumers and economy.

DID YOU KNOW THAT CERTAIN AGREEMENTS BETWEEN COMPETITORS ARE ILLEGAL?

If you or your principal are establishing agreements with your competitors with the aim or effect of fixing prices, limiting production, sharing markets, or coordinating bids, you are violating the law, and may be aim of severe sanctions, not only for undertakings, but also for the people involved¹.

Those individuals or undertakings that think their behavior might be in violation of the law, have the possibility of cooperating with the competition authority and avoid sanctions, by complying with conditions offering by the immunity program.

Current fines for these practices might be up to 1.5 million times minimum wage in Distrito Federal, more than 82 million Mexican Pesos for the first offense², or in case of reoffense up to 10% of the offender’s annual sales or the value of its assets.

WHAT DOES THE IMMUNITY PROGRAM INVOLVE?

The immunity program set forth in article 33 bis 3 of the LFCE allows any economic agent that has been part or is making illegal agreements with its competitors to receive a benefit for its cooperation with the authority. The sanction might be reduced through the agent´s cooperation only to a minimum wage ($57.46 Mexican Pesos).

WHO COULD APPLIED TO THE IMMUNITY PROGRAM?

The Immunity Program grants benefits to anyone who requests it and fulfill the assumptions in the law-. (ARTICLE 33 BIS 3 OF THE LFCE, AND ARTICLES 43 AND 44 OF THE RLFCE).  Under this program, the participant of a collusion who requests it first and contributes sufficient elements that enable presumes the existence of the collusion, may receive the maximum benefit of the sanctions reduction, only a minimum wage. In chronological order, the participants of a collusion (undertakings or individuals) who contribute with new information might received the following benefits: 50, 30, or 20 percent of the fine. The applicable fine depends on the information assessment by CFC.

HOW TO APPLIED TO THE PROGRAM?

The  most important elements to receive the program  benefits are the following:

1. Contribute with all elements in the hands of the interested party or able to get, that could prove the agreement existence;

2. Cooperate with the CFC in a full and continuous way during investigation or procedure;

3. Carry out the necessary actions to end the participation in the LFCE´s violating practice , when the CFC considers it appropriate in order to support the investigation safety;

4. Submit the request before the conclusion of the investigation period.

HOW DOES THE CFC PROTECTS THE PARTICIPANTS IDENTITY?

For the CFC the confidentiality of petitioners’ identity is fundamental, , therefore, it will be maintained confidential at all time  in order to keep secret the petitioner´s name (individual or undertaking).

WHAT STEPS MUST BE FOLLOWED FOR APPLY TO THE PROGRAM?

The interested people in the CFC’s immunity program must made their request by voicemail at phone number 27-89-66-32, or by e-mail to inmunidad@cfc.gob.mx

The CFC will contact with the interested party within the next two days after request delivering and will be inform about the location, date, and hour for review of the provided information at the CFC´s offices. The CFC will inform to the interested party if the information received might be sufficient to start an investigation, and will be informed about the potential reduction percentage of the fine, that in case, might be applicable. The CFC assigned Mr. Carlos Mena Labarthe, Director General de Investigaciones de Prácticas Monopólicas Absolutas y Restricciones al Comercio Interestatal exclusively, to monitoring the Immunity Program; therefore, he is the only authorized officer to make contacts and carry out pertinent formalities.

COMISIÓN FEDERAL DE COMPETENCIA

DIRECCIÓN GENERAL DE INVESTIGACIONES DE PRÁCTICAS MONOPÓLICAS ABSOLUTAS Y RESTRICCIONES AL COMERCIO INTERESTATAL

Av. Santa Fe No. 505, Piso 24 Col. Santa Cruz Manca C.P. 05349, Cuajimalpa México, D.F.

Phone number: 27896624
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¹ Article 9 of the Ley Federal de Competencia Económica (LFCE) sets forth: “Absolute monopolistic practices are the contracts, agreements, arrangements, or combinations among competitors, whose aim or effect, are any of the following: I. Fix, increase, set, or manipulate the sale or purchase price of goods or services at which they are supplied or demanded in the markets, or exchange information with the same aim or effect; II. Set the obligation of not produce, process, distribute, commercialize, or acquire only a restricted or limited amount of goods, or, the provision or transaction of a restricted or limited number, volume, or frequency of services; III. Divide, distribute, assign, or impose shares or segments of a current or potential market of goods and services, through customers, suppliers, times, or spaces, certain or determinable; or IV.  Set, arrange or coordinate bids or refrain from bidding in contests, competitive biddings, auctions, or public auctions…”

² The minimum wage in the Distrito Federal during the 2009 was 57.46 pesos.