Recently, the constitutional reform for the simplification of the organizational structure in Mexico has been published and has come into force, which does not establish deadlines for the issuance of secondary legislation, leaving uncertain when the structural changes will begin to take effect and when a new competition authority will be established. It is crucial to define the new legislation, which could be limited to institutional adjustments or incorporate new concepts and regulations that require detailed analysis.
The reform guarantees that prior decisions of COFECE, IFT, and INAI will retain their legal validity, while it is expected that the new authority will maintain technical and management independence. According to the transitional provisions, COFECE and IFT will cease to exist within six months following the entry into force of the secondary legislation.
Despite the circulating misinformation, a competition authority will be maintained to combat monopolistic practices. The constitutional reform introduces complex transformations in the reorganization of state regulators, particularly in the area of economic competition. The creation of a new authority is anticipated, which will assume the powers of COFECE and IFT across all sectors, including telecommunications and broadcasting.
Although authorities assure that matters are ongoing, the budget cut is concerning, especially for COFECE and IFT, whose requirements far exceed the allocations received. Financial uncertainty may affect the transition towards an adequate regulatory framework, given that existing commitments in human resources and real estate leasing vastly exceed the available funds.
Some sectors fear that the agencies may be paralyzed starting in the second quarter of 2025 if budgetary adjustments are not made. It is essential to find solutions to ensure the continuity of COFECE and IFT and their ability to fulfill their regulatory responsibilities in the future.
