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The investigative authority of the Federal Economic Competition Commission (Cofece or Commission) has initiated an investigation based on a complaint regarding the possible anticompetitive practices in the market for the development, marketing, and sale of digital goods and/or services. In particular, Cofece is investigating possible “tied sales” or “raising costs for rivals.”
Cofece indicated that the investigation analyzes the development, marketing, and sale of digital goods and/or services, such as e-books, software, video games, photographs, music, and online movies, among others. These digital goods and services, as well as applications, are created by developers and marketed to end-users through various channels. The negotiation and corresponding payment processing mechanisms are also being analyzed.
Cofece observed that, in Mexico as in many countries, there has been a significant increase in consumption and revenue from the sale of digital goods and services. In 2021, sales of video games in Mexico increased by 24% compared to the previous year, digital book sales grew by 35%, and digital photo and video sales increased by 19%.
This investigation (identified by case number DE-023-2022) began on Jan. 6, 2023. If the investigation identifies elements suggesting a violation of the law, those responsible will be called to a trial-like procedure to present their defense. If an anticompetitive practice is proven, the responsible economic agents may be fined up to 8% of their income and ordered to cease the illegal conduct.
* This GT Alert does not apply to matters or laws in the United States, nor to other jurisdictions outside of Mexico.