Mexico, compared to other countries1, has a particularity that makes it different from an antitrust perspective and that, at least in recent years, has represented a challenge for economic competition and antitrust. Mexico has two competition authorities which have the same powers and authority depending on the relevant market/sector.
HOW THIS DUALITY WAS CREATED
It has been almost ten years since the creation of this duality of competition authorities in Mexico. By virtue of a constitutional amendment in 2014, the Federal Telecommunications Institute (the IFT) was created as a new autonomous constitutional body with exclusive jurisdiction over competition and antitrust matters in the broadcasting and telecommunications sectors. Additionally, the former Federal Competition Commission (the COFECO) was transformed into the new Federal Economic Competition Commission (COFECE) with exclusive jurisdiction over competition matters in all areas of the economy except for the broadcasting and telecommunications sectors, competence in which corresponds to the Federal Telecommunications Institute (IFT and jointly with COFECE, the Competition Authorities in Mexico).
In accordance with this amendment, pursuant to Article 28 of the Mexican Constitution (Constitución Política de los Estados Unidos Mexicanos), the purpose of both competition authorities in Mexico is to guarantee free and open competition and access to the markets, as well as to prevent, investigate and prosecute monopolies, monopolistic practices, unlawful concentrations (mergers) and other restrictions to guarantee the efficient functioning of the markets. However, the IFT will do so exclusively in competition matters related to broadcasting and telecommunications matters, whereas COFECE will cover everything else.
The creation of this distinction 10 years ago may not have implied the challenge it represents today. Likely because there was not as much development or evolution in digital markets and platforms as there is today.
