- Strengthening of the Antitrust Authority. The creation of the National Antitrust Commission (CNA) as a decentralized body within the Ministry of Economy might improve collaboration in overseeing economic competition. The CNA's political integration with the federal government, combined with its technical independence, may enable a more robust response to anticompetitive conduct. The CNA might also strengthen its ties with international organizations and sector regulators, fostering the exchange of best practices and global standards.
- Increased Penalties and Fines, and Certification of Compliance Programs. The recent reforms aimed at doubling the maximum fines for anticompetitive practices and increasing penalties for procedural noncompliance may serve as an incentive for companies to implement or strengthen their compliance programs and seek certification from the CNA. These measures may raise the standard of accountability and align Mexico's framework with international standards.
- Criminalization of Anticompetitive Conduct. The introduction of clearer mechanisms for the criminal prosecution of cartels may increase deterrence and individual accountability. The possibility of criminal sanctions, alongside administrative penalties, might encourage stricter compliance with the Federal Economic Competition Law.
- Procedural Reforms for Greater Efficiency in Mergers and Investigations. The reduction of investigation periods and the shortening of review times for mergers could, in the long term, enable faster and more predictable proceedings. The reforms might drive changes to the guidelines the competition authority issued, including the Merger Guidelines. These changes aim to provide greater legal certainty to economic agents and facilitate strategic planning of transactions. However, delays may occur as the competition authority adjusts to a reduced budget and smaller staff. At the same time, the budget reduction may serve as an incentive to process more mergers in less time, considering the potential increase in fees and the possibility of heightened scrutiny for global operations related to the Mexican market.
- Facilitating Class Actions and Civil Liability. The mechanisms for filing class actions may create additional opportunities to seek compensation for damages incurred by consumers and others affected by anticompetitive practices. The reforms might help strengthen the protection of market participants' rights to claims mechanisms by streamlining the claims process. Likewise, it is possible that greater feasibility and effectiveness of both class and individual actions would encourage companies to adopt preventive measures and enhance their compliance programs. As a result, an increase in both class and individual lawsuits may occur during the year, contributing to a more transparent and equitable market environment. Companies might consider conducting comprehensive compliance reviews, particularly in sectors where the authority has launched significant investigations in recent years (for example, healthcare and digital markets).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
