Investigation into absolute monopolistic practices in neonatal metabolic screening medical services in Mexico's public sector.

Investigation into absolute monopolistic practices in neonatal metabolic screening medical services in Mexico's public sector.

Mexico's competition watchdog, the Federal Economic Competition Commission ("COFECE"), announced today, June 6, the commencement of an investigation into the market for comprehensive medical services for neonatal metabolic screening tests and the products related to their application, contracted by public-sector health institutions (the "Investigated Market"), for the possible commission of absolute monopolistic practices.

COFECE will investigate whether the competitors participating in the Investigated Market coordinated prices, restricted supply, divided or allocated market shares, coordinated bids in tenders, or exchanged information among themselves with the purpose or effect of carrying out any of the conduct described above. Once the investigation is concluded, COFECE could impose fines of up to 10% of the income of the economic agents that participated directly in any collusive conduct, notwithstanding civil and criminal liability. In addition, the persons involved in the conduct could be barred from holding positions as board members, administrators, directors, managers, executives or agents of a company for a period of up to 5 years and fined more than 20 million pesos. For additional information, please contact: Fernando Carreño, Partner:+52 (55) 5258-1042 | fcarreno@vwys.com.mx Sergio López, Partner:+52 (55) 5258-1042 | slopez@vwys.com.mx