Efficiency and Anticompetitive Behavior in Economic Theory

According to economic theory, under what assumption is the existence of a natural monopoly efficient?

R. It exists when a market is provided in the cheapest and most efficient way by a single company with decreasing costs.

In this market structure there is only one buyer and one or more suppliers.

R. Monopsony

PART III

El concepto de Agente Económico ha sido debatido constantemente en el campo de competencia económica, si bien la definición de la Ley busca comprender a la totalidad del concepto para facultar a la autoridad en su uso, este término no ha sido ajeno a interpretaciones judiciales que han limitado su aplicación en la práctica.

The term economic agent has also been subject to judicial review and interpretation. In some cases, the Mexican Courts have admitted exceptions to the application of the term to specific actors and entities.

SCJ.-Notaries are an exception to FECL, because them aren't economic agents.

2006 - 2008.-Legal comparison from other countries of economic agent

De conformidad con la LFCE, así como los criterios y legislación de materia empleados en los Estado Unidos y la Unión Europea puede concluirse que el monopolio en sí mismo no es ilícito. Sin embargo, el derecho de la competencia si prevé situaciones en las que conductas relacionadas con el poder de mercado sean sancionables. Con base en lo anterior discuta bajo qué condiciones y supuestos es anticompetitivo el poder de mercado. Considere al menos una jurisdicción distinta a México en su interpretación.

According to the article 53, FECL says that “Absolute monopolistic practices are considered illegal, and these consist of contracts, agreements, arrangements or combinations amongst competing Economic Agents, which have as their purpose or effect any of the following”

The conduct of collusion is also defined and sanctioned in other jurisdictions due to its anticompetitive effects and nature. It is generally defined as a per se conduct, it is therefore sanctioned by its basic consideration of intent (no justification on efficiency grounds).

Collusive behavior, cartels, abuse of dominant power, unfair acts. These are some of the most frequent anti competitive behaviors, bc does not allow healthy competition.