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Concentration Notice
Folio: UCE-01-001

Articles 86, 89 and 90 of the Ley Federal de Competencia Económica, published in the Federal Official Gazette on May 23, 2014. 

Who?

The concentration notice is a procedure from which two or more economic agents, corporations, associations or individuals who are competitors, suppliers or customers, notify to or request authorization from the Institute to execute a merger, acquisition of control or any other act by virtue of which the intend to join their stock participations, corporations or shares.  Essentially, the parties involved seek to obtain authorization from the Institute prior to the execution of a concentration.


When or in what cases?

Before the execution of a concentration, provided that it surpasses the monetary thresholds indicated in article 86 of the Ley Federal de Competencia Económica. The Economic Agents involved who do not surpass such thresholds may optionally notify their concentration to the Federal Telecommunications Institute.

Free form document submitted before the Filing Office of the Federal Telecommunications Institute.


Legal basis:

Article 89 of the Ley Federal de Competencia Económica.

1. Authorization of the concentration,

2. Non-authorization of the concentration, or

3. Conditioned authorization of the concentration.

The resolution, response or resolution issued by the Institute may have a maximum validity of 6 months, extendable for one single time for justified causes.


Legal basis:

Article 90, section V, and third to last paragraph of the Ley Federal de Competencia Económica.

Business or natural days, months:

60 business days from the reception of the notice or, when applicable, of the delivery of the information subject matter of the warning or of the additional information requested.

This term may be extended up to 40 additional business days in exceptionally complex cases and fully justified by the Federal Telecommunications Institute. 


Is constructive assent or denial applicable?:

Afirmative response


Legal basis:

In case the maximum response term has concluded and Federal Telecommunications Institute has not issued any resolution, opinion or notice related to the filed request, the resolution shall be understood as favorable. This, in accordance with the stipulations of article 90, section V, first paragraph, of the Ley Federal de Competencia Económica.

Article 90, sections V and VI of the Ley Federal de Competencia Económica.

Not applicable.

Data:

1. Name, corporate name or denomination of the Economic Agents that notify the concentration and of those involved directly or indirectly in it.

2. When applicable, name of the legal representative and/or common representative and Address for service, and persons authorized for this purpose, as well as information to allow a fast contact.

3. Description of the concentration, type of operation and project of the legal act involved, as well as a draft of the clauses by virtue of which they are bound not to compete, if available, and the reasons why they are stipulated.

4. Information explaining the objectives and motives of the concentration.

5. Description of the structure of the capital stock of the Economic Agents involved in the concentration, either Mexican or foreign corporations, identifying the share of each one of the direct or indirect partners or shareholders, before and after the concentration, and of the persons who hold and will hold control.

6. Mention about the Economic Agents involved in the transaction who have direct or indirect participation in the capital stock, management or any other activity of other Economic Agents who produce or trade on equal, similar or substantially related goods or services to those of the Economic Agents participating in the concentration.

7. Information on the market share of the Economic Agents involved and their competitors.

8. Location of the plants or facilities of the involved Economic Agents, the location of their main distribution centers and the relationship that they keep with such Economic Agents.

9. Description of the main goods or services produced or offered by each one of the involved Economic Agents, specifying its use in the relevant market, and a list of similar goods or services and the main Economic Agents that produce, distribute or trade them in the national territory.

10. All other elements that the Economic Agents notifying the concentration deem pertinent for its analysis.


Legal basis:

Article 89 of the Ley Federal de Competencia Económica.

Documents:

1. Official transcript or certified copy of the document or instrument evidencing the authority granted to represent the Economic Agents.

2. The involved Economic Agents’ Articles of Incorporation and their amendments, or certified copies.

3. The involved Economic Agents’ audited financial statements corresponding to the previous fiscal year.

4. Documentation explaining the objectives and motives of the concentration.

5. The involved Economic Agents’ Articles of Incorporation and their amendments, or certified copies.

6. The involved Economic Agents’ audited financial statements corresponding to the previous fiscal year.


Legal basis:

Article 89 and 111 of the Ley Federal de Competencia Económica.

Business or natural days, months:

10 business days following the delivery of the notice.

Likewise, the Federal Telecommunications Institute holds the powers provided for in article 90 section III, paragraph first, of the Ley Federal de Competencia Económica, to request, within 15 days from the reception of the notice, additional data or documents from the interested parties, which they shall submit within an equal term, which may be extended in duly justified cases.


Legal basis:

Article 90, section I, of the Ley Federal de Competencia Económica.

1. Notice of the concentration is not mandatory in terms of article 86 of the Ley Federal de Competencia Económica, provided that it corresponds to any of the provisions of sections I to VIII of article 93 of this Law.

2. Upon notice of the concentration, the Economic Agents may expressly request from the Federal Telecommunications Institute that the procedure be processed in terms of the stipulations of article 92 of the Ley Federal de Competencia Económica, provided that the conditions and requisites indicated therein are complied with. (Article 92 of the Ley Federal de Competencia Económica. provides for a notice procedure different from the one currently used, therefore, such procedure will be evaluated separately).

3. Economic Agents may execute a concentration without requiring prior authorization by the Federal Telecommunications Institute and without the need to notify provided that they comply with the requisites referred in article Ninth Transitory, first paragraph, subsections a, b, c, and d of the Ley Federal de Telecomunicaciones y Radiodifusión. 


Legal basis:

Article 92 and 93 of the Ley Federal de Competencia Económica.

Article Ninth Transitory of the Ley Federal de Telecomunicaciones y Radiodifusión.

Amount

Free of charge.


Legal basis:

Not applicable.

The evaluation parameters provided for in articles 63 and 64 of the Ley Federal de Competencia Económica will be considered, consisting of:

1. The relevant market;

2. The identification of the main economic agents that supply the corresponding market, the analysis of their power in the relevant market according with this Law and the degree of concentration in said market;

3. The effects of the concentration in the relevant market with respect to the remaining competitors and demanders of the good or service, as well as on other markets and related economic agents;

4. The participation of the parties involved in the concentration in other economic agents and the participation of other economic agents in the parties involved in the concentration, provided that said economic agents participate directly or indirectly in the relevant market or related markets. In case it is not possible to identify such participation, this circumstance shall be fully justified;

5. The elements contributed by the economic agents to accredit a better efficiency of the market that would be attained from the concentration and that would have a favorable impact in the competition process and free access, and

6. In terms of article 14 of the Regulations of the Ley Federal de Competencia Económica, efficiency gains are understood as: savings in resources that allow the production or supply of the same quantity of the good or service at a lower cost, or higher quality at the same cost, without diminishing the quality of such good or service; cost reduction when two or more goods or services are produced jointly rather than separately; technology transfer or development that improves production or supply of goods or services; production and trading cost reduction as a result of the expansion of an infrastructure or distribution network, and all others that evidence that the net contributions to the well-being of the consumer arising from the concentration surpass their anti-competition effects.

7. That the concentration or its intent confers or may confer to the merging corporation, the acquirer or Economic Agent resulting from the concentration substantial power in terms of this Law, or increases or may increase such substantial power, making possible to obstruct, diminish, damage or prevent free access and economic competition;

8. That the concentration or its intent has or may have the purpose or effect of establishing barriers to new participants or prevent access of third parties to the relevant market, related markets or essential supplies, or displacing other Economic Agents; or

9. That the concentration or its intent has the purpose or effect of substantially facilitating the participants in such concentration to exercise forbidden conducts in terms of this Law, particularly, monopolistic practices.

Address the requirements of additional data or documents within 15 days from the reception of notice, term that may be extended in duly justified cases. In case the additional information is not submitted within the term indicated above, the concentration will be deemed as not notified.


Legal basis:

Articles 63, 64 and 90, section III, of the Ley Federal de Competencia Económica.

Article 14 of the Disposiciones Regulatorias de la Ley Federal de Competencia Económica para los sectores de telecomunicaciones y radiodifusión. 

Filing Office of the Federal Telecommunications Institute.
Av. Insurgentes Sur 1143, Ground Floor, Col. Noche Buena, Delegación Benito Juárez, zip code 03720, Mexico City, Mexico.
Service hours: Monday thru Thursday, from 9:00 to 18:30 hours and Friday from 9:00 to 15:00 hours.

Phone: (55) 5015 4000 or 01 800 200 0120

 

General Director of Concentrations and Concessions

Juan Manuel Hernández Pérez

manuel.hernandez@ift.org.mx

Av. Insurgentes Sur 1143, Third Floor, Col. Noche Buena, Delegación Benito Juárez, zip code 03720, Mexico City, Mexico. Phone: (55) 5015 4000 ext. 4047 or 01 (800) 200 0120

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In order to inform facts that may imply a presumption of responsibility for acts or omissions of the Institute´s public servants in the performance of their employment, position or commission, within the framework of the Ley General de Responsabilidades Administrativas, you can submit your complaint to the Internal Control Body of the Federal Telecommunications Institute, through the Deputy General Directorate of Complaints and Investigations in one of the following ways:

 

• By e-mail,

• By written document presented in the Filling Office of the Internal Control Body of the Federal Telecommunications Institute,

• Personally at the offices located at the following address:

 

Insurgentes Sur Avenue # 838, First Floor, Colonia del Valle, Zip Code 03100, Delegación Benito Juárez, in Mexico City, Mexico.

From Monday to Thursday from 9:00 to 18:30 hours and Friday from 9:00 to 15:00 hours.

 

• By the following email address: denuncias.oic@ift.org.mx

• By telephone, at the number: (55) 50152082, or

• Throught web site of the Federal Telecommunications Institute at the Formulario de presentación de denuncias contra las servidoras y los servidores públicos.

Not applicable.

Important:

- All data included in this Website is intended for information only and shall not be considered as binding for the Federal Telecommunications Institute.

 

- All information submitted to the Federal Telecommunications Institute shall be in Spanish language.

Not applicable.

Non-binding courtesy translation
Last modified date: Wednesday, August 01, 2018.
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