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Mexico’s Antitrust Oversight at Risk Due to Budget Cuts

By  |  January 7, 2025

Mexico’s competition regulator, the Federal Economic Competition Commission (Cofece), faces a challenging year ahead, as a significant reduction in its budget and ongoing structural reforms threaten to undermine its ability to enforce antitrust laws effectively.

A recent publication in the Federal Official Gazette revealed that the 2025 federal budget allocation for Cofece amounts to less than one-third of the amount it originally requested. According to a statement, this drastic cut could create uncertainty about the agency’s capacity to fulfill its key functions, particularly as it navigates a transition from an autonomous body to a government ministry under controversial constitutional reforms.

On December 20 and 24, 2024, two important legal documents were made public. The first, a decree concerning organic simplification, establishes the creation of a new authority that will oversee antitrust enforcement in Mexico. This reform is set to phase out Cofece, although the transition period, during which secondary laws must be enacted, means Cofece will continue to operate its existing functions.

Read more: Mexican Lawmakers Advance Controversial Plan to Dissolve Independent Oversight Bodies

Cofece is currently handling several high-stakes cases, including the review of over 150 merger operations, representing nearly 10% of Mexico’s GDP. Additionally, the agency is investigating around 25 cases in crucial markets affecting the welfare of Mexican families and the broader economy. These ongoing procedures are vital to maintaining fair competition and preventing abusive practices by companies.

However, the substantial reduction in Cofece’s budget for 2025 raises concerns over its ability to effectively carry out these responsibilities. “Cofece is committed to providing certainty to investments that generate employment and growth in the country, as well as continuity to its investigations and enforcement efforts,” the agency emphasized in a statement. The agency is now implementing extraordinary measures to ensure that the reduced funding can be stretched to continue its essential work until the new competition authority is established.

With the looming transition, Cofece aims for an orderly shift of responsibilities to the new body. To this end, the agency is actively engaging with government entities to ensure a smooth handover, and it is seeking an appropriate closure plan. This plan is intended to guarantee sufficient resources for ongoing procedures and to uphold legal processes during the shift in responsibilities.

Source: COFECE

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

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

By  |  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