COFECE's Digital Strategy

The Federal Commission of Economic Competition (“COFECE” or the “Commission”) published 30 March COFECE´s Digital Strategy to address the new challenges presented by the digitalization of the economy from a competition perspective. . In its document COFECE lists five specific actions that it intends to carry out in order to focus its review and scrutiny of digital markets.

Acknowledging that the digitization of the economy touches on the exchange of products and services by consumers and suppliers in various markets, taking advantage of telecommunications infrastructure and technological advances as enablers of new ways for such exchange of products and services, COFECE has asserted that needs to be prepared to be in a position to effectively perform its function and ensure the efficient functioning of digital markets in Mexico and champion the benefits of digitization in favor of consumers.

In COFECE’s Digital Strategy, the Commission has proposed to carry out the following actions:

1. Prepare a document assessing the possible implications of digital markets in Mexico, which is intended to address the following issues: (i) the functioning of digital markets, theirbenefits and risks; (ii) the international experience in these markets; (iii) the specific effects on theMexican economy; (iv) the challenges in the areas of competition, consumer and personal dataprotection, which need to be addressed in order to regulate the functioning of these markets; and(v) the current institutional structure in Mexico and, if necessary, the relevance of adapting it toface future challenges.

2. Support forums with international experts, with the aim of training COFECEs staff in theoperation of digital platforms and discuss cases, experiences and policies of other countriesrelated to these markets.

3. Strengthen the capacities of COFECE's staff and technological infrastructure, through amanagement plan for processing of big data, as well as to understand the scope of artificialintelligence, in order to detect and prevent anti-competitive practices.

4. Establish a Digital Markets Competition Unit, within the Commission's organizationalstructure, to analyze the development of the digital economy in Mexico and its repercussions oncompetition, and better understand the reach of digital markets and be able to effectively exerciseits scrutiny powers.

5. Strengthen international cooperation to share knowledge, experiences and developments inthis area with the competition authorities of other countries, as well as to jointly identify actionsthat can be implemented to contribute to the better functioning of digital markets worldwide.

Undoubtedly, COFECE's Digital Strategy comes at a time of new challenges to competition policy resulting from the fast-paced evolution of digital markets and is presented as a great opportunity for participants in these markets to actively engage in the process by expressing their views and concerns, seeking to contribute to COFECE’s efforts in this front.

In case you require additional information on COFECE's Digital Strategy or on how to participate in the forums and other related actions that COFECE has proposed to carry out, do not hesitate to contact Octavio Olivo Villa (oolivo@ritch.com.mx), James E. Ritch (jritch@ritch.com.mx), José Miguel Ortiz Otero (jmortiz@ritch.com.mx) or Marta Loubet Mezquita (mloubet@ritch.com.mx), members of the competition and antitrust practice at Ritch Mueller.