
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
Featured News
Australian Competition Watchdog Greenlights Qube’s Terminal Acquisition
Apr 14, 2025 by
CPI
Republican Lawmakers Urge Reversal of Biden’s AI Export Controls
Apr 14, 2025 by
CPI
Sandoz Files Antitrust Lawsuit Against Amgen Over Enbrel Market Practices
Apr 14, 2025 by
CPI
FTC Reconsiders Boardroom Bans Tied to Exxon, Chevron Oil Mergers
Apr 13, 2025 by
CPI
Twelve Former Employees Back Musk in Court Fight Over OpenAI’s Structure
Apr 13, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – The Airline Industry
Apr 10, 2025 by
CPI
Boosting Competition in International Aviation
Apr 10, 2025 by
Jeffrey N. Shane
Reshaping Competition Policy for the U.S. Airline Industry
Apr 10, 2025 by
Diana L. Moss
Algorithmic Collusion in the Skies: The Role of AI in Shaping Airline Competition
Apr 10, 2025 by
Qi Ge, Myongjin Kim & Nicholas G. Ruppe
Competition in U.S. Airline Markets: Major Developments and Economic Insights
Apr 10, 2025 by
Germán Bet