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Amendment to the Federal Antitrust Law: What can we expect?

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By: Sophia Lozano Chernitsky and Carlotta Anaya Robles Martínez

On July 17th of this year, the amendment to the Federal Antitrust Law (by its acronym in Spanish, the “LFCE”) entered into force, which was approved in line with the constitutional amendment approved at the end of 2024 regarding organizational simplification (the “Amendment”).

The Amendment introduced significant changes in the field that will have a profound impact not only on a legal level but also market wise and the way in which merger and acquisition transactions are carried out.

The key points to be considered from the Amendment are: (i) the creation of a new antitrust authority; (ii) the increase of fines; (iii) the reduction of thresholds regarding concentration notices; and (iv) certain changes regarding absolute and relative monopolistic practices.

I. Creation of a new antitrust authority

As a result of the Amendment, a new and sole authority regarding antitrust matters named the National Antitrust Commission (by its acronym in Spanish, the “CNA”), was created and is set to replace the Federal Antitrust Commission on the day following the appointment of the 5 (five) commissioners that will incorporate it.

The CNA will be a decentralized public agency of the Ministry of Economy with autonomy and independence, vested with powers in antitrust matters (including in the fields of telecommunications and broadcasting). In addition, the CNA will be coordinated with the newly incorporated Digital Transformation and Telecommunications Agency and with the Telecommunications Regulatory Commission for certain proceedings.

The CNA will be incorporated by 5 (five) commissioners to be appointed by the President of the Republic, each serving a 7 (seven) year term, which may not be renewed or extended.

II. Increase of fines

The Amendment significantly increased the fines set forth in the LFCE. It also provides that in the event of any repeat offenses the amount of the applicable fines may be doubled when imposed on the economic agent that engaged in the sanctionable conduct.

The fines were increased as follows:

Punishable Conduct Increase
Non-compliance with information requests 37.5%
Delivery of false information 14.2%
Absolute monopolistic practices  50%
Relative monopolistic practices  25%
Illegal mergers  25%
Unnotified mergers  60%
Not removing the competition barrier 20%
Noncompliance with regulations regarding acces to essential goods 20%
Non-compliance with measures that eliminate non-competitive practices 20%

III. Reduction of thresholds regarding concentration notices

While the Amendment maintains the same criteria to determine whether a concentration must be notified to the can or not, it reduces the previously established thresholds, which are now set forth as follows:

(i) When the act or series of acts giving rise thereto, regardless of the place of their execution, directly or indirectly import in the national territory, an amount exceeding the equivalent of sixteen million times the daily value of the currently applicable Measurement and Update Unit (by its acronym in Spanish, the “UMA”); that is, the amount of MXN$1,810,240,000.00;

(ii) When the act or series of acts giving rise thereto result in the accumulation of 30% or more of an economic agent’s assets or shares, whose annual sales originated in national territory or assets located in the national territory exceed the equivalent of sixteen million times the daily value of the currently applicable UMA; that is, the amount of MXN$1,810,240,000.00; and

(iii) When the act or series of acts giving rise thereto result in an accumulation in national territory of assets or equity capital exceeding the equivalent of seven million four hundred thousand times the daily value of the currently applicable UMA; the amount of MXN$837,236,000.00, and where two or more economic agents participating in the concentration have, jointly or separately, annual sales originating in national territory or assets located in national territory exceeding the equivalent of forty million times the daily value of the currently applicable UMA; an amount of MXN$4,525,600,000.00.

IV. Absolute and relative monopolistic practices

In addition to the increase in fines mentioned in Section II above, it is important to highlight certain significant changes in the provisions governing absolute and relative monopolistic practices:

Absolute monopolistic practices:

Regarding the exchange of information among competitors, when such exchange is illicit, it shall be deemed a form of collusion among competitors to engage in absolute monopolistic practices.

A new sanction is introduced consisting in the disablement from participating in public procurement procedures for a period ranging from 6 months to 5 years for those who collude in public biddings.

Relative anticompetitive practices:

The theories of harm are broadened to include those that have the effect of limiting the ability of different economic agents to compete in the market.

Additional elements are included to determine the substantial power of an economic agent, such as: (i) the positioning of goods in the market; (ii) lack of access to imports; and (iii) the existence of high costs that affect consumers.

These changes may affect the market not only from a legal perspective, but also operationally and commercially, as the Amendment establishes additional parameters and limitations in order to protect free competition and participation in the market among economic agents.

On the other hand, in the area of mergers and acquisitions, a comprehensive analysis of these changes becomes important, since, as a result of the Amendment, more merger and acquisition transactions will fall within the new thresholds and will be subject to notification before the CNA.

Furthermore, it will be essential to create an extensive collaboration between legal advisors and clients to ensure that the limitations established as a result of the Amendment do not become obstacles but rather serve as an incentive to protect the market and consumers, while consistently applying good commercial practices.

Note: The value for the UMA in 2025 was used to calculate the fine in Pesos Legal Currency of the United Mexican States.

References:

https://www.cofece.mx/cofece/images/cofece/slider/aRT_CARRUSEL/infografia.pdf

https://www.dof.gob.mx/nota_detalle.php?codigo=5763164&fecha=16/07/2025#gsc.tab=0

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