- Cofece is preparing to decide whether Google engaged in monopolistic practices in Mexico, which could result in a historic sanction.
- The investigation began in 2020, and a ruling is expected before June 17; the fine could reach up to 8% of Google's annual revenue in the country.
- Google is accused of restricting competition and limiting sales in the digital advertising sector.
- The case reflects an international trend, with Google facing similar litigation in the United States and other markets.
In Mexico, the Google subsidiary is under scrutiny by regulatory authorities for alleged abuse of dominant position. and potential monopolistic practices in the digital advertising market. Everything indicates that the Federal Economic Competition Commission (Cofece) will announce its ruling in the coming days on a case dating back to 2020 and which could set a decisive precedent in the regulation of large technology platforms in the country.
If the irregularities are confirmed, Google could face the largest fine ever imposed by Cofece, reaching up to 8% of its annual income generated in Mexican territoryAlthough the company doesn't publicly disclose figures by country, it is known that in 2024 the "Other Americas" region—which includes Latin America—accrued more than $20.000 billion, which helps to gauge the magnitude of the potential penalty.
What is the investigation into Google Mexico about?
La Cofece accuses Google of having created an effective monopoly in the digital advertising sector. and limiting competition by imposing restrictive conditions on advertisers and companies in the sector. Among the practices investigated are: alleged "conditional sale" of services, in which customers would be forced to purchase different products from the Google ecosystem as a single package, thus restricting their freedom of choice and making it difficult for new competitors to enter.
The investigation was formally launched after evidence was presented in 2023, although The regulator's investigations began in 2020.After several years of reviewing evidence and arguments, the final oral hearing between Google and Cofece was held on May 20, a clear sign that a resolution is imminent.
What does this potential fine entail and how is it calculated?
The penalty could amount to hundreds of millions of dollars., given the size of Google's revenue in the region. To estimate the amount more accurately, Cofece has requested detailed financial information from the Tax Administration Service (SAT). If the maximum possible fine were imposed, it would not only far exceed the regulator's previous sanctions—such as the one imposed on LP gas distributors in 2022—but would also set an important precedent for future regulatory actions against technology companies in Mexico and Latin America.
In the event of an adverse ruling, Google would still have legal recourse: the company could request a precautionary measure to temporarily suspend the sanction while a specialized court reviews the case. This legal process could prolong the dispute, as has already occurred in other countries.
Google's defense and tensions with the Mexican government
Google has publicly defended that its size does not imply abuse or elimination of competition.According to Lina Ornelas, head of public policy at Google Mexico, "being big isn't a bad thing; the important thing is not to eliminate your rivals with your products, even if they're very efficient." However, the case has further strained relations with Mexican authorities, especially following the recent lawsuit filed by President Claudia Sheinbaum over the change, for American users, from the name "Gulf of Mexico" to "Gulf of America" on Google Maps.
Adding to this is pressure from legislators from the ruling Morena party, who have urged Cofece to end the protracted process and issue a resolution as soon as possible that marks a change in the oversight of technology platforms.
It is not the only litigation that Google maintains with a State
The Mexican case is not an isolated incident. The company faces similar litigation in the United States, where it is accused of maintaining an illegal monopoly in both the online search market and the digital advertising business. US authorities have even demanded the sale of some of its business units—such as Google Ad Manager—and the cessation of practices aimed at securing its dominant position as the default search engine on phones and devices.
The investigations and proceedings underway, both in Mexico and in other countries, reflect the Global concern about the market power concentrated by technology giants like Google and its implications for free competition in digital ecosystems.
Cofece's decision could mark a turning point in the control of monopolistic practices in the technology sector.Furthermore, it will be closely watched by other major companies in the sector as well as by governments in the region and around the world, which currently face similar challenges in regulating digital power and ensuring fair competition on global platforms.
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