Cartels 2025

MEXICO Law and Practice Contributed by: Alejandro Mendiola Diaz, Pedro Isaac Alcalá Berhouague and Benjamín Uriel Salinas Morales, Nader, Hayaux & Goebel

1. Cartels Law and Regulation 1.1 Legal Bases Preliminary Note In December 2024, a constitutional reform was approved introducing two major changes to the competition enforcement landscape in Mexico. • The Federal Economic Competition Commis - sion (COFECE) and the Federal Telecommu - nications Institute (IFT) will be dissolved, and their competition-related functions consoli - dated into a new competition authority under the executive branch. • All competition-related powers over telecom - munications and broadcasting, previously held by the IFT, will be transferred to the new competition authority. Importantly, the implementation of this reform remains contingent upon the enactment of new secondary legislation, including a new Competi - tion Law and a new Telecommunications Law. These laws will define the scope of institutional restructuring and may also introduce substan - tive changes – such as increased sanctions for hardcore cartels, modifications to the leniency programme, or revised rules on attorney-client privilege. As of early 2025, both COFECE and the IFT remain fully operational, and the existing legal framework continues to apply. The timing and content of the legislative transition remain uncer - tain, and the practical effects of the reform will depend on how the new legal framework is ulti - mately defined. Consequently, the information contained herein may be subject to change depending on the provisions of the forthcoming Competition Law.

Cartel Conduct Cartel conduct in Mexico is primarily governed by the following legal instruments. • The Mexican Constitution, which establishes the basis for economic competition policy. • The Federal Economic Competition Law (Mexican Competition Law), which defines and prohibits absolute monopolistic practices (hardcore cartels). • The Regulations of the Mexican Competition Law, which set procedural rules for enforce - ment. • Specific regulatory provisions for the leniency programme and for the protection of attor - ney-client communications. Currently, cartel conduct is investigated and sanctioned by two specialised agencies: the COFECE and the IFT, depending on the sector involved. 1.2 Regulatory/Enforcement Agencies and Penalties In Mexico, two federal agencies are currently responsible for investigating and sanctioning cartel conduct. • COFECE, which oversees all sectors except telecommunications and broadcasting. • IFT, which acts as both regulator and compe - tition authority for those specific sectors. These agencies have exclusive author - ity to investigate and sanction cartel behav - iour through administrative proceedings. Civil actions – whether for damages, lost profits, or collective claims – may only proceed once the agency’s decision becomes final and is upheld, if challenged, by the specialised federal courts.

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