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Mexico Closes Antitrust Case Against Google, No Fines Imposed

Mexico’s Federal Economic Competition Commission (Cofece) announced on Friday the closure of its multi-year antitrust investigation into Google, clearing the tech giant of allegations related to monopolistic practices in the country. The probe, initiated in 2020, focused on Google’s digital advertising services both on its search engine and third-party websites.

Cofece’s investigation examined whether Google’s advertising platform design gave it an unfair advantage over competitors in the digital advertising market. The watchdog concluded that advertisers were not compelled to purchase ads on third-party sites to advertise on Google’s search engine, effectively negating claims of monopoly abuse.

A Google spokesperson welcomed the decision, stating, “We appreciate COFECE’s decision recognizing that our products give advertisers the freedom and control to use our tools in the ways that best suit their needs.”

Had Cofece found Google guilty, the company could have faced fines up to 8% of its annual revenue in Mexico. Although Alphabet does not publicly disclose specific revenue for Mexico, its “other Americas” region, which includes Latin America, generated approximately $20.4 billion in 2024.

Google continues to face antitrust scrutiny worldwide. In the United States, courts have ruled that Google holds unlawful monopolies in online search and advertising technologies. U.S. regulators have pushed for measures including data sharing and divestitures of key advertising assets to foster competition.

Google Faces Potential Major Fine in Mexico Over Antitrust Allegations

Mexico’s antitrust authority, the Federal Economic Competition Commission (Cofece), is expected to deliver a ruling by June 17 on whether Google engaged in monopolistic practices in the country’s digital advertising market. If found guilty, the tech giant could face a fine of up to 8% of its annual revenue in Mexico, which would represent one of the largest penalties Cofece has ever imposed.

Although Google’s parent company, Alphabet, does not disclose country-specific revenues, its “Other Americas” segment, which includes Latin America, generated $20.4 billion in revenue in 2024. This makes Google the most significant company yet targeted by Mexico’s competition regulator.

Cofece’s investigation into Google Mexico began in 2020 and moved into its trial phase in 2023, allowing Google the opportunity to present counter-evidence. The regulator alleges that Google effectively built a monopoly in Mexico’s digital advertising sector. As part of its investigation, Cofece also sought Google’s financial information from Mexico’s tax authority (SAT). An oral hearing with Google, considered one of the final steps in the process, was held on May 20.

Under Mexican law, the maximum fine for monopolistic conduct is capped at 8% of a company’s annual revenue. Should Cofece rule against Google, the company may seek an injunction to delay the penalty while a specialized court reviews the decision.

This case aligns with broader global regulatory scrutiny of Google’s business practices. In the United States, Google has faced multiple antitrust cases. Last year, a U.S. district judge ruled that Google holds an unlawful monopoly in online search and search advertising. In another case, the U.S. Justice Department accused Google of illegally dominating online advertising technology markets and has suggested the company divest parts of its Google Ad Manager business.

Domestically, Google has also faced political friction in Mexico. President Claudia Sheinbaum has filed a lawsuit against Google over its renaming of the Gulf of Mexico to “Gulf of America” for U.S. Google Maps users following a decision under former U.S. President Donald Trump. Mexican lawmakers from the ruling Morena party have been urging Cofece to resolve the antitrust case against Google since last year.

Cofece and Google have declined to comment on the ongoing investigation.

Taiwan’s Pegatron Nears Decision on U.S. Factory Plan Amid AI Server Production Needs

Pegatron, a major Taiwanese supplier for Apple and Dell, is in the final phase of evaluating plans for a new factory in the United States, with a decision expected by this or next month, company president and CEO Kuang-Chih Cheng said on Friday.

Key factors influencing the site selection include land and labor costs, with electricity availability being especially critical due to the factory’s focus on artificial intelligence (AI) server production, Cheng told reporters during the company’s annual shareholders’ meeting.

When asked about possible locations, Cheng noted that Pegatron’s considerations are similar to those of peers and competitors, many of whom are looking at U.S. states like Texas, where Taiwanese manufacturers Foxconn, Inventec, and Wistron have recently announced expansion plans.

Pegatron has been actively diversifying its manufacturing footprint away from China since the Trump administration began imposing trade restrictions, expanding operations in Southeast Asia and Mexico. The company already maintains a repair base in Indiana and an office in California.

Additionally, Pegatron started developing an AI server production line in Mexico last year, with mass production slated to begin in the third quarter.