Mexico's National Antimonopoly Commission sanctioned companies Praxair and two firms from the Infrapor Group with fines totaling close to 800 million pesos for engaging in monopolistic practices in the medical oxygen market.
The authority determined that both companies, among the main suppliers of medical oxygen in various regions of the country, included exclusivity clauses in their contracts with private clinics and hospitals, which prevented their clients from turning to other providers.
According to a statement issued by the Ministry of Economy, these conditions limited the entry and expansion of competitors, as well as restricted healthcare centers from accessing better purchasing terms.
According to the resolution, the contracts also provided for automatic renewals and penalties for early termination, applicable to both existing and future hospitals.
These practices were in effect for at least the period from 2010 to 2023, including the COVID-19 pandemic.
The Commission stated that the conduct directly affected clinics, hospitals, and patients who require medical oxygen, a vital supply for medical treatments, especially for respiratory diseases.
As a result, a fine of 723 million pesos was imposed on the Infra Group and 68 million pesos on Praxair.
Additionally, the authority ordered the companies to remove the exclusivity clauses from existing contracts, refrain from including them in future agreements, and avoid automatic renewal mechanisms.
They will also have to appoint a compliance officer and an independent auditor to oversee the implementation of corrective measures and ensure compliance with competition law.
The Commission emphasized that the health sector is a priority and assured that it will maintain permanent surveillance over competition conditions in this market, with the aim of protecting patients.
The sanctioned companies can appeal the resolution before specialized courts. EFE
