On December 20, 2024, the Mexican President published in the Official Daily of the Federation the decree that amends and adds several articles of the Political Constitution of the United Mexican States in respect of administrative simplification (the “Reform”). The stated objective of the Reform is to simplify the structure of the government, eliminate administrative redundancies that increase operating costs and to simplify governmental processes by eliminating seven autonomous government bodies, including the Federal Economic Competition Commission (“COFECE” or Comisión Federal de Competencia Económica) and the Federal Telecommunications Institute (“IFT” or Instituto Federal de Telecomunicaciones).
In the competition field, the Reform contemplates principally the following:
1. The disappearance of COFECE and IFT.
2. The transfer of the legal authority currently exercised by COFECE to the Mexican Federal Executive, which will now be exercised through a new government agency on competition matters yet to be created.
3. The transfer of the legal authority of IFT, in respect of competition in the telecommunications and broadcasting sectors, to the Federal Executive, which will now be exercised through the new competition agency.
4. The granting to the Federal Executive of the legal authority to issue administrative regulations of general application on competition matters.
5. Establishing that general norms and acts issued on competition matters, or omissions, by the Federal Executive, may be challenged only by means of an indirect constitutional challenge procedure (amparo) and may not be suspended.
6. Providing that fines and remedies imposed by the Federal Executive, through the new competition agency will be enforced once the resolution of any indirect constitutional challenge procedure (amparo) that is initiated against it, is issued.
7. Establishing that in no case will ordinary or constitutional appeals be admitted against intra-procedural acts; in other words, only the legal provisions applied in the proceeding implemented in the form of a trial, violations of law contained in the resolution or during the proceeding may be challenged but only once the resolution that ends any such proceeding has been issued.
8. Providing that the constitutional challenge procedures (amparo) referred to above will be dealt with by specialized judges and courts.
9. Establishing that the new competition agency will have legal personality and its own assets, technical and operational independence in its decisions, organization and operation, and will guarantee the separation between the authority that investigates and the authority that resolves any such proceedings.
10. Establishing that the acts issued by COFECE and IFT before the Reform is enacted shall have full legal effects.
In respect of competition matters, the Reform will enter into force 180 days after the Mexican Congress issues the implementing secondary laws on competition matters. The Reform establishes that COFECE and IFT will be extinguished 180 days after the date on which the Mexican Congress issues the implementing secondary laws on competition matters.
The Reform does not specify the term within which the Mexican Congress must issue the aforementioned secondary legislation. Nonetheless, while such secondary legislation is discussed and enacted and the Reform enters into force in its entirety, COFECE and IFT will continue to exercise full authority on competition matters as usual.
Ritch Mueller has extensive experience in competition and antitrust matters, with a team of professionals available to provide advice to economic agents with new or pending matters or proceedings before COFECE and IFT that may be impacted by the Reform.
If you require additional information, please contact Octavio Olivo Villa ([email protected]) or James E. Ritch ([email protected]), leaders of the competition and antitrust practice area of Ritch Mueller.
