Mexico nears landmark antitrust decision that could cost Google millions

Mexico’s Federal Economic Competition Commission (Cofece) is expected to issue a ruling by June 17 in a high-profile antitrust case against Google, according to the agency’s legal calendar, as per a Reuters report.

If Cofece determines that the tech giant engaged in monopolistic practices, Google could be fined up to 8% of its annual revenue in Mexico — the maximum penalty allowed under Mexican competition law.

While Alphabet Inc., Google’s parent company, does not disclose specific revenue figures for Mexico, its “Other Americas” segment, which includes all of Latin America, generated $20.4 billion in 2024.

A penalty based on Google’s Mexican operations could therefore amount to tens of millions of dollars, depending on its market share and earnings in the country.

The ruling could mark a significant precedent for digital competition enforcement in Latin America.

Endgame in a lengthy investigation

The verdict will conclude an over four-year investigation that began in 2020, when Cofece launched a probe into Google’s dominance in the digital advertising market.

The case advanced to its trial phase in 2023, when the agency formally summoned the company to present its defence.

A final oral hearing was held on May 20, according to case documents released by Cofece, suggesting a decision is imminent.

During the proceedings, Cofece obtained financial data on Google’s local operations from Mexico’s tax authority, SAT, to assess the company’s market behaviour.

The regulator accuses Google of abusing its dominant position to suppress competition in digital advertising, though the specific allegations have not been disclosed publicly.

The case aligns with broader global scrutiny of Google’s advertising business, which has drawn regulatory action in the US, Europe, and other jurisdictions.

If Cofece rules against the company, it could face a multimillion-dollar penalty and heightened regulatory pressure across the region.

Google's options

If the Cofece rules against Google, the corporation can seek an injunction.

This would temporarily halt the ruling's enforcement while a specialized antitrust court considers the case.

This process could take months or even years, but Cofece would still be able to announce its results.

This case will put Mexico's competition regulators to the test, as they have issued very few fines against huge global tech businesses in the past.

In 2022, Cofece fined a group of liquefied petroleum gas distributors over $126 million for price-fixing, one of its highest penalties yet.

If the Google case results in a similar or greater fine, it would set a new precedent for tech regulation in the country and likely attract international attention.

Broader tensions and political undercurrents

While the antitrust action is ostensibly distinct, it takes place against the backdrop of escalating tensions between Google and Mexico's federal government.

President Claudia Sheinbaum recently chastised the business in a separate court case over Google Maps' labeling of the Gulf of Mexico.

Her administration claims that rebranding the body of water as "Gulf of America" for US customers exceeds the company's power.

Meanwhile, politicians from the ruling Morena party have frequently asked Cofece to conclude the long-running inquiry into Google's business operations, indicating a political stake in a successful resolution.