Mexico's lower house approves reforms to country's competitition law
Dow Jones
Mexico's lower house of Congress on Thursday approved legislation that will give the country's anti-trust agency greater powers to punish firms and executives that violate competition laws.
The bill would allow the Federal Competition Commission to levy fines of up to 10% of a company's annual sales and seek prison terms of up to 10 years for individuals found guilty of anticompetitive practices, according to a communique from the Chamber of Deputies press office.
The legislation, which now passes to the Senate, was approved with 386 votes in favor and 15 against.
The bill would also give the commission, known as the CFC, the power to conduct surprise on-site investigations, among other new faculties.
Bank of Mexico Gov. Agustin Carstens last week urged lawmakers to approve the bill, saying the lack of competition in key sectors of the economy kept the prices of some goods and services unusually high, even during last year's recession.
Even though the CFC's powers were greatly expanded in 2006, when several reforms to the competition law went into effect, including higher sanctions and immunity for whistle blowers, they still fall short of international standards.
Its maximum fine, about 86 million pesos ($7 million), is a far cry from the 10 percent of a firm's annual sales that competition regulators can levy in other countries.
Enforcing competition laws is an uphill battle in Mexico, where a number of industries--including broadcasting, telecommunications, and cement--are dominated by one or two powerful business magnates.
