Mexico's new antimonopoly legislative bill advances (probably due to immigration pressures)

MexicoNews.com.mx (Miami Herald in Mexico City) ^ | April 08, 2006 | THOMAS BLACK

[Shuttle Shucker]

Thanks for calling my attention to that interesting thread :-)

[La Enchiladita]

Sure thing!

[Shuttle Shucker]

Hey, here's an ENGLISH language article on this hot subject. As a preface I say that stress is the mother of innovation, and our immigration crackdown is doing the job:

http://www.mexiconews.com.mx/18017.html

Bill to increase competitiveness

BY ELISABETH MALKIN
El Universal
April 30, 2006
Congress voted late Thursday to strengthen antitrust laws, a measure advocates say will bolster the economy´s flagging competitiveness by restricting a company´s ability to dominate a crucial industry.
The Senate unanimously approved the bill, following the lead of the lower house, the Chamber of Deputies, which had done the same on Tuesday.
The measure passed despite lobbying by Carlos Slim Helu, whose control of Teléfonos de México, the country´s dominant telecommunications company, has helped him become one of the world´s richest men.
But Eduardo Pérez Motta, the top antitrust regulator, said political parties had an eye on the July 2 vote when they passed the law.
"We have to put the interests of consumers at the center of the country´s public policy," said Pérez Motta, who heads the Federal Competition Commission (CFC).
Luis de la Calle, a business consultant and columnist who worked to support the law, said that increased competition would help the economy modernize.
Mexico´s economy has performed poorly since President Vicente Fox took office six years ago. Economists have said the growth rates of less than 4 percent were too low to create new jobs for an expanding work force. Many economists argue that a reason is the lack of competition in many sectors of the economy.
Many leading industries here are dominated by one or two companies that use their market power to block new competitors.
Telmex, for example, controls 95 percent of all local lines. Mexico´s two brewers have a lock on distribution channels. Two companies control almost everything viewers can watch on broadcast television. Energy remains in the hands of two state monopolies.
Foreign competitors like MCI and the brewer SABMiller complain about the difficulties of breaking into Mexico´s market.
But the CFC has been hamstrung by weak laws. Companies have paid only 15 percent of fines imposed and have tied up many CFC decisions via legal actions.
The new law quadruples fines, to as much as US$5.5 million, for antitrust violations. In the case of repeat violations, the CFC could fine a company as much as 10 percent of its sales and ultimately even move to break it up.
Pérez Motta said higher fines might spur many companies to change. "Once you know the fines are higher," he said, "you just don´t run the light."
It will also make CFC opinions binding on other regulators. In particular, many critics argue that Mexico´s telecommunications regulator has done little to check Telmex´s power. Now, the CFC will have a say in writing regulations as new technology enhances the possibility of competition.
The CFC also plans to look at airports, railroads and customs brokers: all potential bottlenecks that add to the price of finished goods, Pérez Motta said.
The new law creates protection for whistle-blowers and allows the CFC to conduct searches. It also eliminates ambiguities companies have used to win injunctions against the CFC.