This week, the amendment to the Federal Economic Competition Law was published in the Official Gazette of the Federation, marking a change in the country’s institutional and regulatory framework.
Among the most significant changes is the creation of a new agency: the National Antitrust Commission (CNA), which will replace both the Federal Economic Competition Commission (COFEC) and the Federal Telecommunications Institute (IFT) in matters of economic competition in the telecommunications and broadcasting sectors.
This new agency will be a decentralized public agency with technical and operational autonomy, and will report to the Ministry of Economy.
Its structure will consist of a plenary body of five commissioners appointed by the federal executive branch and confirmed by the Senate, as well as an investigative unit responsible for conducting investigations.
The most significant changes in the reform are as follows:
- A new authority with expanded powers:
- The CNA oversees compliance with the LFCE across all sectors, including telecommunications and broadcasting.
- The dissolution of COFECE and the IFT will take effect the day after the Senate confirms the appointees who will serve on the new Board.
- Changes regarding economic concentrations:
- The thresholds determining the obligation to notify a merger have been lowered. The new thresholds are as follows:
- If the total value of the transaction in Mexico exceeds 16 million times the daily value of the UMA.
- If 30% or more of the assets or shares of a company with sales or assets in Mexico exceeding 16 million times the daily value of the UMA are acquired.
- If assets or share capital in Mexico exceed 7.4 million times the daily NAV, and two or more companies with sales or assets in Mexico are involved, and their combined total exceeds 40 million times the daily NAV.
- The National Antitrust Commission will now be able to investigate unreported transactions up to three years after they take place; previously, the time limit was only one year.
- Exceptions to the requirement to notify mergers and acquisitions are being eliminated, such as those for transactions between foreign companies with no assets in Mexico.
- New penalties and enforcement measures
- The maximum fines for serious violations are being increased, with penalties ranging from 8% to 15% of the offender’s income, depending on the offense.
- Specific enforcement measures are being introduced, such as penalties for obstructing verification visits or violating disqualifications.
- Changes in monopolistic practices
- The definition of cartels is being expanded to include agreements between potential competitors.
- The law provides for a ban of up to five years on participating in public procurement in cases of bid-rigging.
- Revision of the immunity program and reduction of penalties
- Access to benefits is restricted based on when the application is submitted.
- Only those who cooperate before an investigation begins will be eligible for the full benefit.
- In cases of abuse of market power (related practices), both exclusionary and exploitative effects will now be assessed.
- Institutional strengthening
- The position of each Commissioner must be published in the plenary session’s resolutions.
- The CNA will have the authority to issue guidelines, technical criteria, and regulatory guidelines
- The use of compliance programs is recognized as a mitigating factor in the imposition of sanctions.
- Addition of Book Four on Telecommunications and Broadcasting
- A Fourth Book is added to the Act, transferring to the new authority the competition-related powers previously exercised by the IFT in matters concerning market dominance, asymmetric regulation, and cross-ownership.
While the new Plenary is being formed, COFECE will continue to operate under the current legal framework. However, effective July 17, 2025, the deadlines for all investigations conducted by its Investigative Authority, as well as those of the IFT, will be suspended pending the formal transition to the CNA.
For more information, please contact us at competenciaeconomica@bgbg.mx.
