Mexico’s President Claudia Sheinbaum has introduced a secondary legislation proposal on economic competition through the Ministry of Economy.
The initiative, submitted to the Chamber of Deputies, seeks to establish the National Antitrust Commission, which will consist of a five-member Plenary, a Supervisory Committee, a Technical Secretariat, and will retain the existing Investigative Authority currently operating under the Federal Economic Competition Commission (Cofece).
A key provision of the proposal ensures that legal actions taken by the Federal Telecommunications Institute (IFT) regarding economic competition, preponderance, and asymmetric regulation will continue to remain legally effective, consumoTIC reported.
The document, sent to the National Commission for Regulatory Improvement (CONAMER), outlines four fundamental modifications to the Federal Economic Competition Law. These include structural changes to the organization and functions of the National Antitrust Commission, normative adjustments, the strengthening of authority and procedures to combat monopolies, and amendments related to the telecommunications and broadcasting sectors.
According to Article 140 of the proposal, the National Antitrust Commission will determine the existence of Preponderant Economic Agents (AEPs) in the telecommunications and broadcasting sectors, as defined under the Federal Telecommunications and Broadcasting Law. An entity will be classified as an AEP if it holds, directly or indirectly, more than 50% national market share, measured by the number of users, subscribers, audience size, network traffic, or utilized capacity, based on data provided by the Digital Transformation and Telecommunications Agency (ATDT).
Specific measures imposed on AEPs will cease to be effective once the Commission declares the presence of effective competition in the relevant market. This provision does not affect the Commission’s authority in other legal procedures outlined in the law.
The proposal underscores that the new National Antitrust Commission will function as a genuine antitrust authority, prioritizing market regulation as a means to contribute to Mexico’s development and the well-being of its citizens, rather than as an end in itself. The new authority will be empowered with enhanced capabilities to swiftly identify, investigate, and sanction illegal conduct with stricter penalties, preventing anticompetitive practices from becoming business strategies.
The initiative also aims to facilitate damage compensation for individuals affected by illegal anticompetitive behavior. Additionally, the new authority will be required to coordinate and cooperate with government agencies in relevant sectors.
The head of the Investigative Authority at Cofece will continue to serve in the same capacity under the National Antitrust Commission. The proposal specifies that their remaining tenure will be calculated based on their previous service period at Cofece, in accordance with Article 31 of the Federal Economic Competition Law.
Moreover, human, financial, and material resources—including records, registries, platforms, or any electronic systems—of Cofece and the IFT, related exclusively to economic competition, preponderance, and cross-ownership regulation, will be transferred to the National Antitrust Commission. These resources will remain operational under current regulations until new provisions are issued under the decree’s Seventh Transitory Article.
This initiative, now awaiting legislative review, represents a significant shift in Mexico’s competition policy, aimed at strengthening regulatory oversight and fostering a fairer economic environment.
