Mexican member firm Mijares, Angoitia, Cortés y Fuentes represented the Federación Mexicana de Fútbol Asociación, AC (FMF) and various soccer clubs in the investigation and proceeding instituted by the Comisión Federal de Competencia Económica (“COFECE”) in the market for the signing of professional soccer players, which dealt with no-poach agreements between competitors.
In June 2018, COFECE initiated ex officio an investigation (the “Investigation”) in the aforementioned market, with a view to investigate the practice known in the media as the “Pacto de Caballeros” consisting of an agreement between Liga MX Clubs that may have restricted the mobility of professional players without a non-contract according to COFECE. These types of practices are commonly known as no-poach agreements and constitute an absolute monopolistic practice in terms of the Federal Economic Competition Law (“FECL”).
In September 2021, COFECE issued a resolution in which it determined the liability of 17 Clubs of Liga MX for carrying out the practice, and the participation of the FMF and some individuals as coadjutants in the practice and imposed a total fine of MXP$177.6 million. After the resolution, the FMF and the sanctioned Clubs paid the fines imposed, in order to terminate the procedure, without challenging the Resolution.
The investigation is the first case initiated by COFECE in labor markets and is a clear example of the relevance that such markets are gaining in the competition policy of the competition authorities at an international level. Since several years ago, competition authorities have expressed their interest in investigating that labor markets operate under competitive conditions, and that employers (in their role as demanders of labor services) do not engage in conduct that implies coordination: (i) to fix labor benefits (e.g. wages or some benefit granted as a labor incentive); and/or (ii) to restrict workers’ mobility (with the consequent depression of wages).
The Investigation sets a precedent of the importance of economic competition law in the labor area, and a message to make companies aware that the LFCE is also applicable in the labor area of the companies and therefore of the importance of training their human resources areas.
The team that represented FMF was composed of partners Francisco Fuente and Carlos Orcí, as well as associate Patricio Rivas.
