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Concerns Mount as Mexico Moves Forward with Telecom Regulator Overhaul

 |  December 1, 2024

Mexico’s recent constitutional reform, which has eliminated the Federal Telecommunications Institute (IFT) and other key regulatory agencies, has sparked concerns about its potential to disrupt the country’s regulatory framework. According to the IFT, the reform could create uncertainty and hinder the effective application of regulations in critical sectors such as telecommunications and competition law.

The bill, which was passed by the Senate on Thursday with 86 votes in favor and 42 against, had already cleared the lower house of Congress. It now awaits approval from Mexico’s state legislatures. The reform, originally proposed by former President Andrés Manuel López Obrador, removes the IFT, along with six other regulatory bodies, including the energy (CRE) and hydrocarbons (CNH) regulators.

In a statement, the IFT expressed its concerns, stating that the reform contradicts the proven benefits of institutional autonomy in regulating these vital sectors. “The evidence shows that the best institutional design for regulating these important sectors is constitutional autonomy,” the IFT remarked. It further argued that a single, convergent regulatory body overseeing both sectoral regulation and economic competition has enabled effective oversight and spurred significant transformation in Mexico’s telecommunications and broadcasting industries.

The reform has also faced opposition from other groups, such as the Mexican Association for the Right to Information (Amedi). Amedi criticized the dissolution of the IFT, warning that the transfer of its responsibilities to the federal executive could undermine regulatory effectiveness. “The extinction of this body implies that its powers will be assumed by the federal executive through the agency in charge of telecommunications and broadcasting policies,” the association said earlier this month, pointing to the limited effectiveness of such agencies in past administrations.

The IFT has raised alarms about the secondary legislation that will follow the constitutional reform. It stresses the importance of maintaining technical impartiality and budgetary independence, which it says are critical for effective decision-making and competition policy enforcement. The Institute also cautioned against fragmenting regulatory responsibilities, noting that this could lead to inefficiencies and inconsistent application of policies across the sector.

The government has suggested that the IFT’s functions might be transferred to the Ministry of Infrastructure, Communications, and Transport, although there is also a possibility of creating a new decentralized agency under the Ministry of the Economy. The final structure will depend on the details outlined in secondary legislation.

Critics also highlight a potential conflict with international trade obligations, specifically Mexico’s commitments under the US-Mexico-Canada Agreement (USMCA). The agreement requires an independent regulator for the telecommunications and broadcasting sectors, which may clash with the proposed changes.

Source: BN Americas

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

 |  April 2, 2025

Meta Platforms CEO Mark Zuckerberg is actively lobbying U.S. President Donald Trump and White House officials in an effort to reach a settlement that would prevent the company from facing an upcoming antitrust trial, according to the Wall Street Journal. The trial, scheduled for April 14, could have significant consequences for Meta, including the potential forced divestiture of its acquisitions, WhatsApp and Instagram.

Per the Wall Street Journal, Meta representatives have met with Trump and his senior advisers in recent weeks to discuss the Federal Trade Commission (FTC) lawsuit, which accuses the company of engaging in anticompetitive practices. Zuckerberg himself visited the White House on Wednesday, marking his third visit during Trump’s presidency. However, the Wall Street Journal notes that some White House aides have grown frustrated with Meta’s lobbying approach, viewing it as overly aggressive.

Meta spokesperson Andy Stone commented on the company’s engagement with policymakers, stating, “We regularly meet with policymakers to discuss issues impacting competitiveness, national security, and economic growth.” Meanwhile, White House Press Secretary Karoline Leavitt declined to provide a comment, and an FTC representative did not immediately respond to inquiries.

The FTC’s lawsuit argues that Facebook, now Meta, has maintained its dominance in the social networking space through a long-term strategy of eliminating competitive threats. According to the complaint, the company has engaged in anticompetitive conduct to sustain its monopoly power. While the FTC is an independent agency, Trump has sought to increase executive oversight over such entities, requiring them to submit significant regulations for White House review.

Related: FTC Targets Meta’s Market Power, Calls Zuckerberg to Testify

A person familiar with Trump’s thinking told the Wall Street Journal that the president has not yet made a decision on whether the administration will seek a settlement with Meta. Former FTC Chairman Jon Leibowitz, who served under both the Bush and Obama administrations, commented on the unusual nature of a company approaching the White House regarding an antitrust case. “It is unusual for companies involved in big antitrust lawsuits to go to the White House, but it has happened before,” Leibowitz said. However, he added that he has never seen a White House attempt to influence the FTC’s decision-making process, emphasizing the agency’s independence in such matters.

Zuckerberg’s efforts to engage with Trump follow a history of mixed relations between the two. According to the Wall Street Journal, Meta contributed $1 million to Trump’s inaugural fund and Zuckerberg made visits to Mar-a-Lago during the presidential transition. Additionally, in January, Meta settled a lawsuit Trump had filed against the company over its suspension of his social media accounts following the January 6, 2021, attack on the U.S. Capitol. The settlement resulted in a $25 million payment, with $22 million allocated to Trump’s presidential library fund.

As the April 14 trial approaches, it remains to be seen whether Meta’s lobbying efforts will yield a favorable resolution.

Source: The Wall Street Journal