Mexico’s competition authority has imposed fines on leading suppliers of medical oxygen after concluding that their contractual practices restricted competition in the healthcare sector.
The Comisión Nacional Antimonopolio sanctioned Grupo Infra and Praxair for including exclusivity clauses in supply agreements with private hospitals and clinics. The authority found that these provisions prevented customers from sourcing oxygen from alternative suppliers, thereby limiting market access for competitors.
Grupo Infra and Praxair are among the most prominent providers of medical oxygen in several regions of the country. According to the authority, their contracts not only imposed exclusivity obligations but also included automatic renewal clauses and penalties for early termination. These conditions applied broadly across both existing and future healthcare facilities operated by their clients.
The investigation concluded that these arrangements were in place for more than a decade, from at least 2010 to 2023, including during the COVID-19 pandemic. By restricting the ability of hospitals and clinics to switch suppliers, the practices reduced competitive pressure in the market and limited opportunities for healthcare providers to obtain better pricing or contractual terms.
The authority determined that the conduct had direct consequences not only for healthcare institutions but also for patients requiring oxygen therapy, a critical medical treatment for respiratory conditions. Ensuring access to this essential input under competitive conditions was therefore considered a matter of public interest.
Fines totalling approximately 800 million pesos(approximately €44 million) were imposed, including around 723 million pesos (€40 million) on Grupo Infra and 68 million pesos (€4 million) on Praxair. In addition to financial penalties, the companies have been ordered to remove exclusivity clauses from existing contracts, refrain from including such provisions in future agreements, and eliminate automatic renewal mechanisms.
The authority also required the companies to implement compliance measures, including the appointment of an internal compliance officer and an independent auditor to oversee adherence to competition law obligations.
The companies may challenge the decision before specialised courts.