COFECE reform: creation of the National Antitrust Commission (CNA)

1. Creation of the CNA and extinction of COFECE and IFT

• Extinction of COFECE and IFT. COFECE and IFT’s economic competition and dominance powers are eliminated; their functions are transferred to the CNA. COFECE and IFT will continue to operate until the CNA Plenary is integrated and, in the case of IFT, until the Plenary of the Comisión Reguladora de Telecomunicaciones (CRT, Telecommunications Regulatory Commission) is integrated.
• Legal nature. The CNA is a decentralized public agency with legal personality, its own assets, and technical and operational autonomy, but attached to the Ministry of Economy —implying lower independence than COFECE’s constitutional autonomy—.

2. Organizational structure

• CNA Plenary. Five commissioners, including a president, appointed by the Federal Executive and ratified by the Senate. Seven-year terms without possibility of reelection; staggered appointments (2028-2032 for the first cohort).
• Investigating Authority. The investigation function (led by the Investigating Authority Unit) is separated from case adjudication.

3. Expanded powers

• New attributions. The CNA assumes COFECE’s and IFT’s competition functions, including regulation of dominance and cross-ownership in telecommunications and broadcasting.
• Inspections and data collection. Explicit powers to conduct surveys, collect data through any means, and request law-enforcement support for verifications.
• Compliance programs. The CNA will certify competition compliance programs every three years, strengthening the Immunity Program.

4. Procedural changes

• Suspension of investigations. All COFECE and IFT investigation proceedings are suspended upon entry into force of the reform and resume once the CNA Plenary is constituted. Merger notifications and judicial proceedings are not suspended.
• Shorter terms. Investigation deadlines are reduced from 600 to 480 business days; final resolution issuance goes from 40 to 30 business days.
• Hearings. An oral hearing replaces written closing arguments; complainants may attend evidentiary hearings.

5. More severe sanctions

• Higher fines. Sanctions for absolute monopolistic practices rise from 10% to 15% of annual income; for relative practices, from 8% to 10%.
• Debarment. Companies sanctioned for absolute practices can be debarred from public contracting for 6 months to 5 years.
• Recidivism. A previous sanction will no longer need to be final in court to trigger recidivism, allowing fines up to double.

6. Other relevant changes

• Exclusion of state-owned enterprises. PEMEX and CFE are exempt from investigations and sanctions for monopolistic practices.
• Merger control. Notification thresholds are lowered; the substantial impact on competition in relevant or related markets is added as an indicator of illegality.
• Joint substantial market power. New elements to assess the abuse of joint substantial market power.
• USMCA compliance. The reform aligns competition policy with Article 21 of the USMCA, separating investigation and sanctioning functions.

Implications

• Loss of autonomy. The attachment to the Ministry of Economy and appointment of commissioners by the Federal Executive have drawn criticism for potential politicization.
• Business impact. Tougher sanctions, shorter deadlines, and stricter merger control mean higher costs and risks, making compliance programs essential.
• State strengthening. The reform seeks to reinforce the State’s economic leadership, but the exclusion of state-owned enterprises and the reduced autonomy of the CNA have been flagged as risks to effective competition.