Cofece initiates an investigation for possible monopolistic practices in the market for the development, distribution and payment processing of mobile applications and digital content, as well as related services.
Applications allow a wide variety of functionalities and content to be added to electronic devices. These applications are produced by developers and distributed to the users of these devices, mainly through app stores. Developers can generate revenue from their applications through different business models, including advertising, in-app purchases and in-app downloads.
In Mexico in 2021, more than 4.8 billion downloads were made from app stores, according to the Federal Economic Competition Commission (“COFECE”), which represented around 29 billion pesos in revenue for app developers that same year.
The investigating authority of the COFECE published the initiation of an ex officio investigation for the possible existence of relative monopolistic practices in this market, in order to analyze if any of the conducts set forth in article 56 of the LFCE and/or 10 of the LFCE of 1992 are present, since there is an objective cause that could indicate the existence of possible relative monopolistic practices set forth in the aforementioned regulations.
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