MEXICO Trends and Developments Contributed by: Rodrigo Buj García, María José Jiménez Neria and Flora Astrid Alvarez Acosta, Malpica, Iturbe, Buj & Paredes
and 10% for exclusionary conduct and/or unlawful mergers. This adjustment brings Mexico’s sanction levels closer to international standards – such as those of the Euro - pean Union, where fines for cartels can reach 15% to 20% of annual revenues – and is intended to strength - en deterrence. However, the real deterrent effect will depend on the CNA’s ability to apply these sanctions The LFCE establishes an ex ante assessment of transactions that must be notified to the competition authority when their value surpasses certain thresh - olds, which were reduced in the most recent reform: • transactions valued at more than MXN1.81024 bil - lion (previously MXN2.03652 billion); • transactions involving the acquisition of 30% or more of the assets of an economic agent with annual sales in Mexico exceeding MXN1.81024 bil - lion (previously MXN2.03652 billion); and • transactions involving the accumulation of assets in Mexico valued at more than MXN837.236 million (previously MXN950.376 million), when the parties have annual sales or assets exceeding MXN4.5256 billion (previously MXN5.43072 billion). with rigour and proportionality. Reduction of merger thresholds As a result, a greater number of transactions will now fall within the scope of mandatory notification to the competition authority for prior review and authorisa - tion. The reform also extended the statute of limitations for investigating mergers that are not subject to man - datory pre-notification. Previously, these transactions could only be reviewed within one year of their com - pletion; now, the period has been increased to three years. This modification enhances the authority’s ability to address potentially harmful concentrations that fall below the thresholds, but at the same time it prolongs the period of legal uncertainty for busi - nesses. Nonetheless, this may also incentivise eco - nomic agents who are not required to notify to do so voluntarily, to avoid the risk of the transaction later being dissolved by the competition authority.
Finally, other modifications relate to the criteria for determining both individual and joint substantial mar - ket power, as well as the assessment of pro-compet - itive gains in mergers. In these cases, the reform did not introduce new elements but rather incorporated into the LFCE a set of factors that had already been developed and applied through the Regulatory Provi - sions previously issued by COFECE’s board. All these elements reflect a legislative push towards a more assertive enforcement stance. Yet, the effective - ness of this new framework will hinge on the CNA’s capacity to apply its enhanced powers with technical precision, legal soundness and proportionality. With - out these safeguards, the pursuit of speed and sever - ity could undermine due process and the credibility of competition enforcement in Mexico. Client-attorney privilege The reform also narrowed the scope of client-attorney privilege by limiting its application exclusively to exter - nal counsel. Communications with in-house lawyers are no longer covered, which raises significant con - cerns for companies that rely on internal legal teams to manage sensitive competition matters. Integration of Powers in the CNA: Broadcasting, Telecommunications and Digital Markets The previous dual-authority model created by the 2013 constitutional reform – COFECE for most sec - tors and the IFT for broadcasting and telecommuni - cations – was designed to reflect the complexity of these industries. However, over time it led to recurring jurisdictional disputes – particularly in the digital economy – which undermined the efficiency and effectiveness of enforcement. By consolidating all competition powers in the CNA, the 2025 reform seeks to eliminate these conflicts and to provide a single point of authority, not only for traditional markets but also for digital platforms and telecommunications. To succeed, the CNA will need both qualified personnel and the ability to integrate the expertise previously divided between COFECE and the IFT.
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