Basham, Ringe y Correa, S.C.
  January 8, 2005 - Mexico

Resale Price Maintenance

May a manufacturer fix the price at which its distributor may sell its products (resale price maintenance)? Article 10 of the Federal Enconomic Competition Law sets out in seven paragraphs the activities that are classified as relative monopolistic practices, provided that: (a) the agent in question has substantial economic power in the relevant market; and (b) the purpose of effect of the activity is, or may be, to improperly displace other agents from the market, significantly impede their access to it, or establish advantages in favor of one or more people. Even when a relative monopolistic practice is shown to be taking place, the agents involved may prove that the conduct in question generates efficiencies.


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