Mexico has just enacted its most far-reaching reforms in over a decade, transforming the legal and regulatory framework for both competition law and the telecoms sector. On July 16, 2025, two major legal changes were published: a complete overhaul of the Federal Economic Competition Law (LFCE) and a new standalone Telecommunications and Broadcasting Law. Both took effect on July 17.
A New Regulator and a New Legal Logic for Antitrust
At the core of the competition law reform is institutional restructuring. The Federal Economic Competition Commission (COFECE) has been dissolved and replaced by the Comisión Nacional Antimonopolio (CNA), a decentralized agency under the Ministry of Economy. While not constitutionally autonomous, the CNA will have technical independence and its board members will serve for non-renewable seven-year terms.
Key changes include:
- Expanded Definition of Collusion: It’s no longer necessary to prove an agreement or “meeting of minds.” Tacit coordination or even the exchange of competitively sensitive information may constitute a violation.
- Stricter Relative Practice Tests: A new “object or effect” standard focuses on whether a practice unduly harms competition, raising the evidentiary bar for justification.
- Refined Market Definition: Product positioning, import barriers, and cost structures are now codified factors, with joint dominance receiving special scrutiny for “interdependent strategic behavior.”
Faster, Deeper Merger Reviews
Merger control is now leaner—but more intrusive:
- Lower Thresholds: Notifications are triggered at MXN 1.81 billion or by acquiring 30% of a firm exceeding that level in revenues or assets. Serial acquisitions that cumulatively exceed MXN 837 million may also trigger reviews.
- Shorter Timelines: The CNA must decide within 30 days (down from 60), and all exceptions for foreign share transfers or passive investments have been removed.
- Stricter Sanctions: Fines can reach 15% of annual turnover. Unauthorized deals may be undone, and unnotified mergers can be legalized only under a regularization process—still subject to penalties.
Investigations and Sanctions
The CNA must now conduct investigations within tighter timelines—capping inquiry periods at roughly two years and cutting deadlines for issuing formal charges and adjudicating cases. Final oral hearings must deliver binding decisions within 30 days, and irrelevant evidence may be excluded, reinforcing procedural efficiency.
Sanctions are also tougher and more dissuasive. Daily fines for non-compliance can reach MXN 905,000, while financial penalties for false statements or anticompetitive behavior now scale up to 15% and 10% of revenues, respectively. Importantly, CNA decisions will serve as conclusive proof in follow-on private damages actions, potentially increasing litigation risk. At the same time, the authority will certify compliance programs as mitigating factors.
Telecoms and Digital Platforms Under New Surveillance
In parallel, Mexico created a new legal framework for the communications sector. The Telecommunications and Broadcasting Law introduces:
- Recognition of Digital Platforms: E-commerce, fintech, streaming, and delivery platforms are now regulated entities. Platforms cannot sell ad space to foreign governments, with enforcement handled by the Interior Ministry (SEGOB) and penalties ranging from 2%–5% of annual revenue.
- The New CRT Regulator: A new body, the Comisión Reguladora de Telecomunicaciones (CRT), will issue detailed rules affecting platform conduct, infrastructure deployment, and spectrum use.
- Passive Infrastructure Regulation: For the first time, providers of towers, fiber optics, and other non-licensed infrastructure must comply with CRT rules on installation, maintenance, and dismantling.
- Support for New Models: The law enables:
- Private 5G networks for industrial use (e.g., mining, logistics).
- High-Altitude Platform Systems (HAPS)—drones, balloons, and airships delivering connectivity to remote areas.
- Experimental spectrum licenses to test new technologies.
State Competition in Broadband—With Rules
The Federal Electricity Commission (CFE) is now formally allowed to offer broadband services. However, the law mandates:
- Competitive Neutrality: The CRT will ensure that CFE does not enjoy unfair advantages in pricing, access, or regulation.
- Shared Infrastructure: Private firms can access CFE’s grid for fiber deployment under regulated terms, potentially transforming electricity corridors into digital highways.
Implications for Lawyers and In-House Counsel
Collaboration and data-sharing protocols that were once considered low-risk may now trigger enforcement under the broadened definitions of collusion.
Ongoing mergers and other transactions should be audited, as many deals previously exempt from notification will now require clearance under lower thresholds and accelerated timelines.
Compliance frameworks must be upgraded to meet the CNA’s certification standards, which offer mitigation opportunities but also demand robust internal governance. Finally, contracts involving digital platforms, infrastructure operators, or content providers must be reviewed and updated to reflect new legal definitions, reporting duties, and regulatory oversight introduced by the telecom law.
What Investors Should Watch
For institutional and strategic investors, Mexico’s new regulatory framework brings both risk and opportunity. Regulatory exposure is now more quantifiable, with defined thresholds and deadlines requiring deal models to account for potential non-notification fines of up to MXN 905,000 per day and penalties reaching 15% of annual revenues.
The Federal Electricity Commission’s (CFE) entry into broadband introduces a dual challenge: reassessing the competitive landscape for telecom portfolio companies while also exploring potential joint ventures leveraging CFE’s infrastructure.
Enforcement targeting digital platforms is also expected to evolve, with the CRT likely to introduce new licensing, content, and competition rules—particularly for dominant players.
