Mexico: COFECE to probe IUSA-CFE electricity meter sales

The Investigating Authority at Mexico’s Federal Commission for Economic Competition (COFECE) announced this week it will launch an investigation against Grupo IUSA for alleged monopolistic practices in the sale of electricity meters to the state-run monopoly, the Federal Electricity Commission (CFE).

A CFE source explained that the could stem from possible collusion among bidders for public tenders, similar to what occurred among pharmaceutical companies related to sales to the Mexican Social Security Institute (IMSS).

COFECE’s statement added that “derived from the information provided by the complainant […] this Federal Commission of Economic Competition was aware of facts that led to the possible existence of absolute monopolistic practices …” CFE invested more than 15 billion pesos in the acquisition of electric meters through various public procurement processes.

If the uncompetitive practices are proven, IUSA will be liable to a fine equal to 10% of their income for the period. Additionally, individuals who participated in or facilitated the agreement may face charges.

Full Content: El Financiero

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