Competition regulation: an unconventional tool to advance ESG initiatives
Sustainability and circular economy initiatives may require collaboration among competitors, raising relevant challenges under Mexico’s antitrust framework.
The development of ESG and circular economy strategies may require joint efforts among companies within the same industry, particularly when sustainability objectives depend on coordination, innovation and scalability. However, this type of collaboration among competitors must be carefully assessed from an antitrust perspective.
In Mexico, the Federal Economic Competition Law does not provide a specific exemption for agreements among competitors aimed at sustainability objectives, nor does it establish a special binding ex ante approval procedure. Accordingly, any joint initiative should assess potential competition risks at an early stage.
Experience arising from the pandemic showed that competition authorities may adopt more receptive approaches toward certain forms of collaboration when relevant economic or social benefits are involved. Nevertheless, greater regulatory clarity is still needed to facilitate ESG and circular economy initiatives without compromising healthy competition in the market.
