Tariff Regulation

Maritime Transportation, Mexico

In December 2021, the Competition Commission of Mexico (COFECE) found that competitive conditions were absent in three relevant markets associated with the provision of local maritime transportation services for passengers in the Mexican State of Quintana Roo. According to Mexican law, this finding can be used by the sectorial regulator, the Ministry of the Navy, to consider the possibility of implementing tariff regulation in specific routes.

One of the firms involved in this resolution of the Mexican Competition Commission retained Oxford Competition Economics to design a proposal of the “Economic Guidelines for the Determination of the Regulated Tariffs” that the sectorial regulator might use for regulatory purposes. These guidelines were presented and discussed with officials of the Ministry of the Navy, which in turn issued its final economic guidelines during the first quarter of 2022.