Recent Jurisprudence – Variables to Consider in Determining Whether Substantial Power Exists in a Relevant Market, by Adrián Salgado

The First Collegiate Court of the Circuit on Administrative Matters Specializing in Economic Competition, Broadcasting and Telecommunications, located in Mexico City, with jurisdiction throughout Mexico, recently issued legal opinion number 1.1o.A.E. 123 A (10a.), titled: “Substantial Power in a relevant market. Variables that should be considered in order to determine such”. In its legal opinion, the Collegiate Court held that “the analysis of the substantial power in a relevant market cannot be performed in abstract terms, under a perfect perspective”, considering that when consumers do not perceive the existing products and services as perfect substitutes, under real conditions, the various economic agents have a certain amount of power. Based on the foregoing, the Court determined that it is necessary to consider the principal item corresponding to the market share held by the economic agent investigated, as well as other variables that can be indicative of the substantial power that said economic agent actually has in the relevant market, such as the position held by the other competitors in the relevant market, the existence of potential entrants into the market and the counterweight that can be exerted by buyers.