Email: elizabeth.albarran@elsoldemexico.com.mx
X: @ElizaAlbarran
TikTok: @elizalbarran11
We Mexicans need autonomous bodies that really monitor companies (private and state), that sanction them forcefully so that they avoid bad practices and that force them to provide better services. But until now, these organisms They have been left to us.
I mention this because the last point (I hope) that AMLO launched is that he plans to carry out a reform to eliminate autonomous organs which are responsible for supervising and regulating certain economic sectors such as the energy sector, which is monitored by both the Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH), or the Federal Economic Competition Commission (Cofece), which has a broader range wide, except telecommunications, which is in charge of the Federal Telecommunications Institute (IFT).
From the energy sector, we know that what AMLO wants is to return the monopoly to both Pemex and CFE, although they never really lost it. Although the energy reform was carried out during Enrique Peña Nieto’s government that allowed the arrival of more players, the most noticeable thing that was seen in terms of competition was that there were no longer only gasoline stations called Pemex, but Prices continued to be intervened by the government.
That is to say, they did not work based on supply and demand. If the global trend was a downward price, in Mexico prices rose and if they rose in the world, in our country they remained the same. So, What was the role of regulators?
Something strange happens to me with Cofece because their investigations into certain markets, especially the financial system, are very rigorous and with clear indications, but when it comes to imposing sanctions, they fall short.
In 2021, he sanctioned 35.7 million pesos to Barclays, Deutsche Bank, Santander Mexico, Citi, Bank of America, BBVA Mexico and JP Morgan for manipulating the secondary debt market. This fine was very far from the profits that the banks have, just to mention one, BBVA’s profits in 2021 were 60,256 million pesos. Anyway. A lot of warmth.
The Afores were also fined by Cofece for carrying out absolute monopolistic practices. Sura, GNP, XXI Banorte and PrincipaThey colluded and basically shared the workers’ accounts. The fine was just 1,100 million pesos. This sanction was so insignificant that some of the managers who were accused of cheating, instead of being fired, were promoted. In this space I have already mentioned how much the Afores earn from collecting commissions.
Another of the markets that Cofece has investigated is that of LP gas distributors. Everyone knows who concentrates this market and how they play with prices, but they are untouchable. The same could be said of other sectors such as the sale of show tickets or supermarket chains.
It is not bad to have autonomous organizations, the problem is that They don’t really have enough autonomy or teeth so that companies respect the rules and contribute to healthy competition that benefits consumers with fair prices.