Oxford

Abuse of Market Power

Petroleum Products, Mexico

Oxford Competition Economics was requested to analyze the competitive effects derived from the implementation of a commercial practice by a dominant player in the Mexican hydrocarbons market (and its derivatives). Mexican antitrust law establishes that a dominant player can be accountable for monopolistic behavior when the implemented practice is identified by law as risky, and it has anticompetitive effects on competitors.

The core practice analyzed involved the tying of the supply of petroleum products (gasoline and diesel) to service stations with the provision of the service of land transportation of such products to the point of sale. The case also involved the construction of an index of quality for the provision of the service of land transportation of petroleum products between storage facilities and the retail point of sale in the Mexican market.

Cases