Mezcal’s governing body accused of anticompetitive conduct

Mexico’s chief competition regulatory agency, Cofece, has accused the mezcal governing body, CRM, of previous monopolistic practices.

The regulatory body summoned a legal deemed that the conformity assessment of mezcal, which is carried out to ensure that specific definition and quality requirements for any mezcal entering the market are met, constituted possible anticompetitive conduct.

The investigation into the authority began in March 2021 and concluded in May 2023.

A statement read: “Cofece notified a statement of probable responsibility to a legal person a natural person for their probable responsibility for unilaterally refusing to sell, commercialize or provide a service available and normally offered to third parties (relative monopolistic practice), in the market for the conformity assessment of mezcal.”

If found liable, the authority may be fined up to 8% of their income.

The statement continued: “In 2022, according to information from COMERCAM (the Mexican Regulatory Council of the Quality of Mezcal), the mezcal industry generated 40 thousand direct jobs and more than 190 thousand indirect jobs; while its value amounted to more than 15 billion pesos (£217 million).

“In addition, it is an industry with presence in 9 states of the country and exports to 81 countries. Due to the growing importance of this sector, competition is necessary for new companies to enter the market and for those already established to offer more and better products.”