Amendment to the Federal Economic Competition Law: Key changes.

On July 16, 2025, the amendment to the Federal Economic Competition Law (“LFCE”) by its achronim in Spanish) was published, as previously approved by the Mexican Congress on June 30. With this publication, the structural changes to Mexico’s competition law framework will enter into force as of July 17, 2025.

The key changes introduced by the reform to the LFCE include:

1. Legal Nature of the Competition Authority.– Unlike the Federal Economic Competition Commission (“COFECE”) by its achronim in Spanish), which operated as an autonomous constitutional body, the National Antitrust Commission (“CNA”) by its achronim in Spanish) will be a decentralized public entity under the Ministry of Economy, with its own legal personality, assets, and technical and administrative autonomy.
2. Expanded Powers.- The CNA is granted jurisdiction over telecommunications and broadcasting; is authorized to use “any tool” to collect data and information; and sees an extension of the review period for non-notifiable concentrations from one to three years. Notably, a new power referred to as the “Executive Branch Notice” could, among other effects, limit the ability to extend timelines in merger review processes.
3. New Key Concepts.- The reform introduces new legal concepts such as “potential competitor,” “joint substantial market power”, and “exploitative effects,” which expand the scope of conducts that may be deemed anticompetitive and, as a result, may trigger enforcement actions and sanctions by the CNA.
4. Merger Control.- The monetary thresholds for notifiable concentrations are reduced. The CNA is also given the authority to assess potential negative effects not only in the relevant market but also in related markets. Importantly, the CNA may now roll back the effects of successive transactions to the status quo prior to the execution of the first act. The economic agent may only desist from pre-merger filings before the term for the authority to resolve is commenced. Additionally, the statute of limitations to investigate concentrations that did not require to be notified, is increased from 1 year (previous rule) to 3 years (new rule)
5. Increased Sanctions.- The reform provides for significantly higher fines and sanctions. For instance, maximum fines for absolute monopolistic practices (cartels) increase from 10% to 15% of the economic agent’s revenues, and from 8% to 10% in the case of relative monopolistic practices or unlawful concentrations. If taxable revenues cannot be determined, the cap on fines increases from 1.5 million UMA to 3 million UMA.The reform also introduces new sanctions, including the disqualification of economic agents from participating in public procurement procedures. On the other hand, the máximum period for the resolution of investigations are reduced.
6. Attorney-Client Privilege.- The reform expressly limits attorney-client privilege to communications between economic agents and external counsel. Communications with in-house counsel will not be protected under this privilege, which is particularly relevant for the internal management and treatment of sensitive information. The amended law also regulates the procedure to qualify documents protected under the lawyer-client privilege within an investigation, process that was previously regulated within the regulatory provisions of the economic competition authority.
7. Compliance Program Certification.- Companies may now seek certification from the CNA for their internal compliance programs aimed at preventing and detecting violations of competition law. On this subject, it is important to await to learn about the documents and type of information that will be required by the CNA in order for companies to process this certification, as well as the authority’s criteria to grant such certification, so that the particulars have more elements to evaluate more thoroughly the convenience and real benefits.
8. Leniency and Fine Reductions.- The amended law imposes significant new restrictions on the eligibility of economic agents to benefit from the immunity and leniency program for antitrust violations. On the other hand, the leniency benefits, if obtained, also protect the relevant economic agent from disqualification of public procurement procedures and collective actions from the CNA.

The selection process for the members of the CNA must begin as of July 17. In the meantime, the COFECE will continue to operate and exercise its functions until the Plenary of the CNA is formally established.

Given these substantial changes, companies are strongly encouraged to conduct a thorough operational risk assessment and update their internal antitrust compliance programs to enhance current policies, mitigate legal, financial, and reputational risks, and maintain a strong competitive position in light of the new regulatory challenges.

At Cuesta Campos, we have extensive experience advising companies on antitrust compliance and developing tailored competition compliance programs. Corporate policies and guidelines must be adapted to reflect the specific context of each company—its industry, market power, operating environment, and stakeholder structure, among other key factors.

Contact

Azucena Marín

amarin@cuestacampos.com

Héctor Mercado

hmercado@cuestacampos.com

THE ABOVE IS PROVIDED AS GENERAL INFORMATION PREPARED BY PROFESSIONALS WITH REGARD TO THE SUBJECT MATTER. THIS DOCUMENT ONLY REFERS TO THE APPLICABLE LAW IN MEXICO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE ACCURACY, NO RESPONSIBILITY CAN BE ACCEPTED FOR ERRORS OR OMISSIONS. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE RELIED ON AS LEGAL, ACCOUNTING OR PROFESSIONAL ADVICE BEING RENDERED.