Cofece initiates investigation for possible transnational collusive practices in the fragrance market.

The Mexican Federal Economic Competition Commission (“Cofece”, for its acronym in Spanish) announced on August 15, 2024, that it has opened investigation no. IO-002-2024 into a probable illegal transnational collusive agreement in the market for the manufacture, distribution, commercialization and acquisition of fragrances and fragrance ingredients in Mexico. These are used to scent a wide range of consumer products, including cosmetics, personal care products, perfumes, cleaning products and food.

The agency highlighted the relevance of this investigation involving coordination with foreign antitrust authorities including the U.S. Department of Justice and the Competition and Markets Authority of the United Kingdom, which are also investigating similar conducts in their respective jurisdictions.

During its investigation, Cofece may require economic agents in the relevant market to provide documents, information and testimony, as well as conduct on-site inspections.

With its announcement, the antitrust prosecutor opens an opportunity to any interested parties to review their own practices and, if they find any unlawful behavior, to come forward and cooperate; or, even if they do not participate in the market, to provide information that may be relevant for the investigation, including on the effect in the market and on consumers of the potential collusive behavior.

If you wish to make a risk assessment or approach Cofece, please contact us at [email protected]