Cofece investigates monopolistic practices in the football player market

The Federal Commission for Economic Competition (Cofece) has announced the opening of an inquiry under the file number IO-002-2018, with a view to a possible commission of practices Absolute monopolists in the market of professional footballers in Mexico.

This Wednesday was published in the Official Journal of the Federation (DOF) in which it is discussed the possibility of setting up absolute monopolistic practices, described in Article 53 of the Federal Act on Economic Competition (LFCE) , which indicates that are considered to be unlawful practices consisting of contracts, agreements, arrangements or combinations between economic agents which modify the market to their advantage, in this case, the Liga MX and Ascenso MX transfer market.

Absolute monopolistic practices are contracts, agreements, arrangements or combinations of competing economic agents whose object or effect is to manipulate prices, to restrict or restrict supply or demand, to split or segment markets, coordinate exchange offers, as well as the exchange of information to achieve one of the above objectives.

With regard to the possible commission of absolute monopolistic practices in the process of recruitment and hiring of human resources, this would imply a set of anti-competitive behaviors that hinder the mobility of employees in the labor markettherefore deserves the application of the Federal Law on Economic Competition (LFCE).

By informing the public, the Bureau learned of facts that could lead to the practice of absolute monopoly practices within the meaning of Article 53 of the LFCE, published in the DOF on 23 May 2014, a provision in force at the time of its Coming into force. of the present investigation, as well as by the ninth article of the said law, published in the DOF on December 24, 1992, the last reform of which was published on April 9, 2012 (previous law), on the market which was the object of An investigation professional footballers in the national territory.

Therefore, he opened the investigation to determine if they had been updated or if they were updating the behaviors described in Article 53 of the LFCE and possibly in the ninth article. from the previous law; in his case, the other conduct prohibited by the aforementioned orders, which the Commission became aware of under the investigation.

He said that it only refers to the beginning of an investigation procedureof an administrative nature, in which acts which, in their case, might constitute a violation of the LFCE or of the previous law have not yet been identified, nor do they determine the subject or subjects to whom to whom, if at all, they should be heard in the defense as possible responsible for a violation of it.

This procedure should not be understood as a prejudice on the responsibility of any economic agent, but as an action by the authority to verify the respect of the laws, and this, only if the elements are sufficient to justify the update offenses. , proceed in accordance with Articles 78 and 80 of the LFCE.

According to the third and fourth paragraphs of Article 71 of the LFCE, The duration of the inquiry will be neither less than 30 working days nor more than 120 working days, from the date of this contract, which may be extended up to four times.

According to the LFCE, in case of absolute monopoly, economic agents could be fined up to 10% of their income. Those who have contributed, encouraged or encouraged the implementation of these practices could also be financially sanctioned. The persons who participated in the celebration, execution or order of this type of agreement may be imprisoned according to the Penal Code for a maximum period of ten years.

Although there are not yet any charges or prosecutions, Cofece informed Tuesday afternoon several first division clubs of the procedure to follow regarding the modalities of the signing of the national football . Mexican clubs have been criticized for the completion of this transfer market, in which is implemented the "Gentlemen 's Pact", an informal agreement between football team owners that states that. a contract with another team without the consent of the directors of their current team.

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