MEXICO CITY (Reuters) – Mexico’s antitrust watchdog Cofece on Monday determined that corn flour and tortilla-maker Gruma can fix prices in the market, concluding following an investigation that competitive conditions in the key food segment do not exist.
In its ruling, Cofece ordered that Gruma, which it said controlled between 50% and 90% of the market, should break off some of its assets and halt various commercial strategies it employs.
The antitrust body’s investigation covered both the distribution and marketing of corn as well as the production, distribution and marketing of corn flour and related services, according to the announcement published in the official government gazette.
“This market is fundamental for Mexico’s economy and the wellbeing of consumers, especially due to its impact on the price of tortillas,” according to the Cofece ruling, referring to the country’s staple food.
(Reporting by Raul Cortes; Editing by David Alire Garcia)
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