Mexico’s competition enforcer has issued its highest-ever gun-jumping penalty, fining HP and Poly US$3.3 million for closing their US$3.3 billion merger despite the agency’s ongoing merger review. The penalty is the largest ever issued by Mexico’s Federal Economic Competition Commission and is almost 10 times the size of the previous record penalty, which was €320,000.
The commission said that HP and Poly failed to notify it of the deal’s closing, which took place on October 1, 2018, and that the companies did not obtain the agency’s approval before closing the deal.
The commission said that the companies’ actions ” harmed competition in the market for the production and sale of Personal Computers in Mexico.”
The agency said that it will closely monitor the companies’ compliance with the terms of the deal, including any potential divestitures.