• On July 11, 2025, the Second Chamber of the Supreme Court of Justice of the Nation (SCJN) published jurisprudence 2a./J. 33/2025 (11a.), regarding the admissibility of new tax refund requests after a denial based on formal errors.

• The Supreme Court of Justice (SCJN) determined that when the Tax Administration Service (SAT) denies a refund request for procedural reasons, the taxpayer must challenge the denial through a legal appeal within the timeframe established by law. Failure to do so will result in the taxpayer permanently losing the right to resubmit the request, even if the errors that led to the denial are subsequently corrected.

This criterion is especially relevant for companies and individual taxpayers who regularly request tax refunds, as it modifies a common practice: correcting formal observations and resubmitting the request without initiating a defense.

With this jurisprudence, the Court seeks to prevent tax refunds from becoming indefinite or cyclical procedures, closing the door to repeated requests if defense mechanisms are not exercised in a timely manner. In other words, the initial denial becomes final if it is not challenged, even if the error that led to it was minor.

From our perspective, this new parameter should be understood as both a warning and an opportunity. A warning, because it imposes a greater burden of due diligence on the taxpayer, implying that any procedural oversight could result in the permanent loss of a legitimate economic right. And an opportunity, because it opens the door to strengthening internal processes, preventing contingencies, and establishing a solid tax strategy from the first act of authority.

Practical implications:

• Taxpayers should review the formal requirements of their applications in more detail before submitting them, as errors can become irreversible if not promptly challenged.

• The legal and accounting departments must coordinate to ensure timely filing of defenses against any refusal to return the funds, even if the issue is not substantive.

• The ruling will have a deterrent effect on repeated requests and could reduce the administrative burden on the SAT by encouraging the resolution of disputes in court from the first refusal.

Thus, we believe this precedent represents a turning point by reinforcing a guarantee-based approach to tax procedures, in which the effective exercise of rights requires active and timely defense by individuals.

Therefore, in an environment where credit balances represent a significant source of liquidity, and in the face of an increasingly strict SAT (Tax Administration Service) in the validation of receipts and formal requirements, specialized advice ceases to be an option and becomes a critical operational necessity. It is essential to assess the risks to which workers who remain standing during their workday are exposed in order to determine the actions to be taken.

In line with the entry into force of the Silla Law, the Ministry of Labor and Social Welfare (STPS) published on June 17, 2025, in the Official Gazette of the Federation the Provisions on occupational risk factors to guarantee the right to rest during the working day for standing workers (Provisions), with the aim of establishing the requirements for employers to provide a sufficient number and type of seats or chairs with appropriate backrests for workers who carry out their activities while standing, thus reducing the risks arising from standing for prolonged periods.

The Provisions impose the following obligations on employers:

1. Conduct a risk analysis and integrate it into the occupational health and safety diagnosis or program, or into the corresponding preventive and corrective actions.
2. Record in the minutes of the health and safety committee's inspections the risks detected for each worker who remains standing during their shift, as well as the preventive measures to be applied.
3. Determine the level of risk to which each worker is exposed through the scoring procedure provided for in the Provisions.
4. Provide the most suitable type of seat or chair with backrest: high bench or coat rack type: if standing with occasional support is required; medium back high chair: to alternate postures; adjustable ergonomic chair: whether the task can be done sitting down; or footrest: if the seat height requires it.
5. Inform workers about the risks to which they are exposed and the preventive measures implemented in the workplace.
6. Mark areas where seats or chairs with backrests are located when these are different from the workplace.
7. Refer workers exposed to standing to medical attention when they experience symptoms of discomfort or impairment that may be related to their posture.

Likewise, employers must consider, among other preventive measures (technical and administrative) to avoid occupational risks, the following:

• Design or adapt workstations to allow for the incorporation of seats or chairs with backrests and free movement of limbs and torso.
• Alternate tasks that allow for a change of posture.
• Provide ergonomic footwear for standing.
• Condition the floors in the workplace to have a cushioned surface.
• Establish an active break program based on the results of the risk analysis.

Similarly, the provisions impose obligations on workers regarding the use of seats or chairs.

The Provisions enter into force from the date of their publication, however, in accordance with the Decree that reformed articles 132, 133, 422 and 423 of the Federal Labor Law, known as the "Silla Law", employers have until December 14, 2025 to adapt their internal regulations to comply with the provisions of section V of article 132 of the Federal Labor Law, so these provisions will not be enforceable until that date.

In light of the above, employers are urged to assess the risks to which workers who remain standing during their workday are exposed in order to determine what actions to take.

GENERAL

• The new “Law on Telecommunications and Broadcasting”, published in the Official Gazette of the Federation (“DOF”) this July 16 (the “New law”) introduces various modifications to the “Federal Telecommunications and Broadcasting Law”, published in the DOF on July 14, 2014 (the “Previous Law
• The authority that will replace the Ministry of Communications and Transport in matters of telecommunications and broadcasting will be the recently created Agency for Digital Transformation and Telecommunications (the “Agencia de Transformación Digital y Telecomunicaciones”).Agency”), and the authority that will carry out the functions previously conferred on the Federal Telecommunications Institute (“IFT”) shall be the Telecommunications Regulatory Commission (the “Commission

BACKGROUND AND CONTENT

• On December 20, 2024, the Decree that reforms, adds and repeals various provisions of the Political Constitution of the United Mexican States, in terms of organic simplification, was published in the DOF, which aimed to extinguish seven autonomous constitutional bodies, including the IFT, in order to rationalize public resources that were destined for the operation and functioning of autonomous constitutional bodies, in order to allow greater investment in social policies and programs (the "Constitutional reform

• In its transitional articles, it was established that both the constitutional amendments relating to the dissolution of the IFT and the amendments relating to the exercise of its powers would enter into force within 180 days of the entry into force of the secondary legislation on telecommunications and broadcasting, to be issued by the Congress of the Union. Therefore, the IFT would be dissolved 180 days after the entry into force of the aforementioned secondary legislation.

• On April 23 of this year, the Federal Executive Branch submitted to the Senate a bill containing a draft decree issuing the New Law. According to its explanatory memorandum, the purpose of the bill was to establish the foundations for public policies in telecommunications and broadcasting; regulate the use, exploitation, and use of radio frequency space, public telecommunications networks, access to active and passive infrastructure, orbital resources, satellite communications, the provision of public services of general interest in telecommunications and broadcasting, and the convergence between these services; and safeguard the rights of users and audiences; as well as guarantee the efficient development of the telecommunications and broadcasting sectors.

• New mechanisms for spectrum allocation were also proposed, including shared use schemes, experimental authorizations, high altitude platforms, controlled test environments (sandboxes regulatory) and smart radio networks. These mechanisms will allow the incorporation of emerging technologies, such as direct satellite connectivity to devices, especially benefiting hard-to-reach areas.

• After following the legislative procedure applicable to the Congress of the Union, the New Law initiative was approved on June 28, 2025, in the Senate, on July 1, in the Chamber of Deputies, and the New Law was published yesterday, July 16, in the evening version of the DOF.

• Consequently, this New Law will enter into force today, July 17, except for the provisions relating to the Constitutional Reform, in accordance with its First Transitory Article.

• The New Law will replace the Previous Law, which was repealed.

STRUCTURE OF THE NEW COMMISSION

• The Commission, as a decentralized administrative body of the Agency, will have technical, operational, and managerial independence and must act impartially in issuing its resolutions. However, unlike the IFT, the Commission will no longer be a constitutionally autonomous body with its own legal personality and assets. Additionally, the Commission will be empowered to issue Mexican Official Standards, in addition to guidelines on various matters in the telecommunications and broadcasting sectors.

• Previously, the IFT was composed of seven Commissioners, each with a four-year term, renewable once for the President Commissioner, and a nine-year term, non-renewable for the remaining Commissioners. Its members were appointed by the head of the Federal Executive Branch and ratified by the Senate of the Republic, with the exception of the President Commissioner, who was appointed by the Senate upon the proposal of the head of the Federal Executive Branch.

• The Commission's Plenary will now be composed of five Commissioners, with a three-year term, renewable once for the Chairperson Commissioner, and a seven-year term, non-renewable for the remaining Commissioners. Its members will be ratified by the Senate of the Republic, following appointment by the head of the Federal Executive Branch, who will also appoint the Chairperson Commissioner.

• If the Senate fails to approve two successive appointment proposals for the same vacancy on the Commission, the head of the Federal Executive Branch shall appoint the person to fill the position without requiring ratification by the Senate of the Republic.

NEW KEY TERMS

• Hearings: rights holders who receive and consume audio or audiovisual content provided through the Broadcasting Service and the Restricted Television and Audio Service.

• Social coverage: Access to and availability of telecommunications services in areas or for people in priority population groups determined by the Agency, under conditions of quality, affordability and/or free of charge, taking into account the prioritization criteria established in the respective program.

• Registration Certificates: Amateur radio licenses and registration certificates for the operation of aeronautical systems, equipment used in special, cultural, sporting or similar events, and those that, without being commercially exploited, require rights to transmit and receive signals and frequency bands associated with foreign satellite systems that cover and can provide services within the national territory.

• Unlock: Elimination of the technical restriction on Mobile Terminal Equipment so that it can be used in any technically compatible telecommunications network.

• Digital platform: a digital service provided by intermediaries via the Internet in order to, among other things, offer, provide, market or mediate goods, services, applications, products or content.

• Passive infrastructure providers: Independent providers that offer or market passive infrastructure elements, including tower space, floor space, and auxiliary elements.

• Intelligent radio communications network: a radio communications network established in a delimited geographical area, for exclusive use for the specific needs of industries or other sectors, and which is logically, technically and/or physically separated from public telecommunications networks.

POWERS IN ECONOMIC COMPETITION MATTERS

• Unlike the provisions of the previous law, the new competition authority will exercise the powers corresponding to the broadcasting and telecommunications sectors in this area, and not the Agency or the Commission.

AUDIENCE RIGHTS

• The rights of audiences are added, by virtue of which, among others, they have the right: (i) to receive content that reflects the ideological, political, social, cultural, and linguistic pluralism of the Nation; (ii) to have elements provided to distinguish between advertising and program content; (iii) to exercise the right of reply, for which the licensees will provide elements to distinguish between news information and opinions. Likewise, the licensees must issue Codes of Ethics to protect the rights of audiences.

In this regard, the Commission will be empowered to provisionally suspend broadcasts that violate the rules established in the New Law regarding audience rights.

SOLE CONCESSION FOR PUBLIC USE

• In accordance with its purposes, the sole concession for public use will grant the Federal Electricity Commission the right to provide end users with internet and telecommunications services, for social coverage purposes and to offer free internet access in public places.

COLLABORATION FOR THE PROSECUTION OF JUSTICE

• Although telecommunications licensees remain obligated to comply with all written, reasoned, and justified orders from the competent authority, as established by law, and to cooperate with law enforcement, law enforcement, and justice administration bodies in the real-time geographic location of terminal equipment, it is important to note that these obligations must now be understood and interpreted within a new national law enforcement framework that empowers various authorities to request such information.

LEGAL ACTS ISSUED BY THE IFT

• They will continue to have all their legal effects. In the case of legal instruments or equivalent acts executed by the IFT, they will be deemed to be in force and will be binding on the new antitrust authority, as appropriate.

MATTERS AND PROCEDURES STARTED BEFORE THE IFT

• Matters and proceedings initiated before the IFT prior to the entry into force of the New Law will continue to be processed before the Commission or the new antitrust authority, as appropriate.

PERMITS AND ENABLING TITLES

• Beneficiaries of any enabling title in force at the time of the entry into force of the New Law that grants the right to use and exploit radio frequency bands, issued prior to the Previous Law, must request the transition to the concession, authorization or registration certificate regime, as appropriate, within a period of 1 year.

• The validity of any enabling title whose transition to the applicable regime is not carried out will expire at the end of the aforementioned period and, consequently, the frequencies subject to said permits will revert to the Nation by full right.

NEW TENDERING PLAN

• It must be issued within 180 days of the New Law's entry into force. The Commission will issue a bidding plan for radio spectrum frequency bands for the provision of mobile wireless access service.

We are at your disposal to provide you with any information or assistance related to the impact resulting from the entry into force of the new Telecommunications and Broadcasting Law.

PUBLICATION LINKS

• https://dof.gob.mx/nota_detalle.php?codigo=5763167&fecha=16/07/2025#gsc.tab=0.

• https://dof.gob.mx/nota_detalle.php?codigo=5745905&fecha=20/12/2024#gsc.tab=0.

I. Origin.

As a result of the recommendations received by Mexico in the most recent mutual evaluation report from the Financial Action Task Force (FATF), a reform initiative to the Federal Law for the Prevention and Identification of Operations with Illicit Proceeds ("Anti-Money Laundering Law") was presented in recent months.

This initiative was recently approved by the Congress of the Union, and the respective reform decree was published in the evening edition of the Official Gazette of the Federation on July 16, 2025 (the "Reform"), entering into force the day after said publication.

This document summarizes the main and most relevant changes to the Anti-Money Laundering Law.

II. New concepts introduced in the Anti-Money Laundering Law.

II.I. New Obligations and Expanded Obligations.

The main objective of the Reform is establish new obligations to people who carry out vulnerable activities, in order to assimilate them to those activities carried out by regulated financial institutions, which have a more robust regime, and which entail a greater administrative burden.

However, the Reform provides for the possibility that, subsequently, the Ministry of Finance and Public Credit (the “SHCP”) establishes general exceptions to compliance with these obligations, through officially published agreements.

Such new obligations, or expanded obligations of those carrying out vulnerable activities, are the following:

1. Risk-Based Approach.- They must evaluate their operations using a risk-based approach. This seeks to identify, analyze, understand, and mitigate the risk that such operations could be used in acts that could constitute crimes involving operations with illicit proceeds, financing of terrorist and criminal organizations, and similar offenses.
2. Automated Monitoring Mechanisms. These mechanisms aim to: (i) monitor acts and transactions to identify those that deviate from the transactional profile of clients and users; (ii) accumulate transactions semiannually for reporting purposes; and (iii) provide intensified monitoring of clients or users who are politically exposed persons.[1] or high risk.
3. Annual Audits.- The Reform introduces the requirement that an annual audit be conducted—through an internal or external auditor—of the effectiveness of compliance with anti-money laundering obligations. This will depend on the risk level of the person carrying out the vulnerable activity.
4. Staff Selection and Training.- Processes must be in place for staff selection, as well as for training certain staff in anti-money laundering.
5. Type of Documentation to be Retained and Period.- According to the Reform, (i) the retention period for information and supporting documentation for vulnerable activities is extended from 5 to 10 years; (ii) the scope of the information and documentation that must be retained is conceptually required to allow for the reconstruction of operations, and it expressly provides that commercial correspondence for carrying out the operation, as well as prior analyses, must be retained.
6. Identification of the Controlling Beneficiary.- Although the Anti-Money Laundering Law stipulated the obligation to inquire about the existence of a controlling beneficiary, the Reform expressly establishes the obligation to identify that controlling beneficiary and to request the corresponding information and documentation. In this regard, the definition of controlling beneficiary was modified to clarify that it always includes one or more natural persons, and the percentage of control was reduced from 50% to 25%.

In addition to the previous obligations, which are specific to those who carry out vulnerable activities, the Reform establishes a general obligation, applicable to all commercial companies, to (i) meet requirements under the Anti-Money Laundering Law, to determine your Controlling Beneficiary and retain the information that supports it (which was already a tax obligation under the applicable provisions); and (ii) to give notice, in the PSM in charge of the Ministry of Economy, not only of the transfer of ownership of securities representing shares or stocks, but also of the constitution of rights of any nature over them, also recording the information necessary to identify the respective controlling beneficiary(ies), which is an additional obligation to what is required under the applicable commercial provisions, and therefore, could be punishable under the Anti-Money Laundering Law.

The SHCP will also promote among the federal entities that the Companies and associations of a civil nature also identify their respective controlling beneficiaries.

II.II. Vulnerable Activities.

The Reform introduces, clarifies or expands the following vulnerable activities:

• Real Estate Development.- The receipt of funds for the construction of real estate or subdivision of lots, intended for sale or rent, is established as a new vulnerable activity.
• Cryptocurrency Exchanges Operating with Mexicans.- Although this vulnerable activity already existed, the Reform has extraterritorial effects, establishing that the habitual and professional offering of exchange of virtual assets is considered a vulnerable activity, including operations carried out with Mexican citizens from another jurisdiction.

In this regard, the notification threshold was reduced by approximately two-thirds, to 210 UMAs, and a new threshold was introduced, which is not related to the amount of the transactions, but to the consideration for the service provided, setting it at a low threshold of 4 UMAs.

Likewise, in the specific case of this vulnerable activity, there is an obligation to obtain and retain accurate information on transactions involving virtual assets: originator, recipient, and controlling beneficiary.

• Public notarization service providers. - In addition to the public notarization service providers previously covered under the Anti-Money Laundering Law (notaries, brokers, and public officials), the Reform adds the facilitators referred to in the General Law on Alternative Dispute Resolution Mechanisms.

• Customs agencies. Previously, the Anti-Money Laundering Law only considered certain operations carried out by customs agents and representatives as vulnerable activities. Under the Reform, operations carried out by customs agencies are considered vulnerable activities.

Furthermore, it is clarified that the conduct of vulnerable activities through trusts or any other legal entity is subject to compliance with the Anti-Money Laundering Law.

III. Clarifications and improvements to the Anti-Money Laundering Law

In addition to the new concepts mentioned in the previous section, the Reform contemplates the following:

• Only the establishment of trusts to guarantee credit in favor of institutions of the financial system or public housing agencies is excluded as a vulnerable activity for public notaries.
• Concepts such as the Compliance Manual and 24-Hour Notices, which were previously provided for in secondary provisions, such as regulations and general rules, are now included in the Anti-Money Laundering Law.
• The obligation of public notaries is established give notice under the Anti-Money Laundering Law, in all types of company formation, increase or decrease of share capital, merger or spin-off, and purchase and sale of shares or corporate shares.
• Clarifications of certain terms related to vulnerable gaming and sweepstakes activities.
• Training programs for non-profit organizations, as well as simplified compliance measures, will be implemented within six months of the reform's entry into force.
• As a new sanction, the SHCP may order the suspension of actions or operations with certain clients.
• A provision of the Anti-Money Laundering Law that was not entirely clear, but that allowed for spontaneous compliance with anti-money laundering obligations, has been amended. The new provision allows the Ministry of Finance to refrain from sanctioning all the violations committed, provided that there is spontaneous compliance and recognition of the violation committedThere will also be a second phase of spontaneous compliance, during which fines can be reduced by up to 50%. However, it is advisable to wait for amendments to the secondary regulations or to approach the authorities.

IV. Secondary Regulations

The reform establishes that, within a period of 12 months, the secondary provisions will be amended to give effect to the new provisions of the Anti-Money Laundering Law, so several of these provisions will not have full practical effect immediately.

[1] The SHCP must prepare and maintain an updated list of public officials who should be considered politically exposed persons. In turn, public entities at all three levels of government—federal, state, and municipal—must submit specific lists of such individuals to the SHCP.

New CNE 2025 requirements for self-consumption permits

Executive Summary

Content:

The Electricity Sector Law in its articles 30 and 33 recognizes as self-consumption the production of a Power Plant with a capacity equal to or greater than 0.7 MW that is intended to satisfy the on-site needs of the person holding the current generation permit, providing that interconnected self-consumption in power plants with a capacity between 0.7 and 20 MW may be subject to a simplified procedure to obtain the generation permit, in accordance with the guidelines issued for this purpose by the CNE.

In this regard, CONAMER has published the Draft Agreement, which aims to clarify the requirements that must be met by those interested in obtaining an interconnected self-consumption permit for power plants with capacities ranging from 0.7 to 20 MW.

The requirements include a single electronic format with technical and financial annexes; the simplified works program; the corresponding business plan if the power plant is not yet installed; a diagram of the applicant's shareholding and corporate structure, including the percentages of share capital; and the identification of the individuals or legal entities exercising direct or indirect control over the company.

The Agreement establishes that the CNE must analyze, evaluate, and resolve the request through the procedure provided for this purpose in the LSE Regulations and in the Administrative Provisions issued for this purpose. This is why it is necessary to closely monitor the publication of these instruments, which will ultimately allow for greater deployment of self-consumption projects and once again lay the groundwork for the electricity sector to gain strength based on a reliable and secure environment.

On April 16, 2025, the head of the Presidency of the Republic published in the Official Gazette of the Federation the new Law on Acquisitions, Leases and Services of the Public Sector (hereinafter, the "Law"), through the Decree issuing the Law on Public Sector Acquisitions, Leases, and Services, and amending, adding to, and repealing various provisions of the Federal Law on Republican Austerity, the Law on the Social Economy, and the General Law on Cooperative Societies..

With the publication of the Law, the previous Law on Public Sector Acquisitions, Leasing, and Services, published in 2000, is repealed, as well as all amendments made to it. However, contracting, conciliation, dispute resolution, and sanctioning procedures that are in process or pending resolution will continue to be governed by the law in force at the time they were initiated. The same will apply to violations committed prior to the Law's entry into force, which will be sanctioned according to the law in force at the time they were committed.

I. Subjects:

The Law regulates the application of Article 134 of the Constitution regarding the acquisition and leasing of movable property and the provision of services of any nature carried out by any of the following:

(i) The administrative units of the Office of the President of the Republic;

(ii) The dependencies of the Federal Public Administration;

(iii) Decentralized agencies;

(iv) Companies with majority state participation and trusts in which the Federal Government or a parastatal entity is the trustee; and

(v) The federative entities, municipalities and territorial demarcations of Mexico City, as well as their public entities, with total or partial charge to the federal treasury, in terms of the agreements they enter into with the Federal Executive.

The Law will apply supplementarily to federal public law entities with constitutional autonomy, as well as those with a specific system for acquisitions, leasing, and services, only in cases not provided for by the regulations that govern them and that do not conflict with them.

The Law does not apply to the Federal Contribution Funds regulated in Chapter V of the Fiscal Coordination Law or to public state-owned companies.

II. Contracts:

Contracts entered into between public agencies or entities shall not be governed by the Law, but rather by the provisions set forth therein or, additionally, by the Federal Civil Code, unless they are subcontracted to third parties for more than 30% (thirty percent) of the contract value.

In addition to the above, the Law establishes a procurement procedure that promotes the best conditions in terms of price, quality, sustainability, social responsibility, and efficiency. To this end, agencies and entities must conduct feasibility studies, cost-benefit analyses, and market research as part of the procurement process. Market research is a key point of the Law, which requires that it be detailed, exhaustive, and complete, serving as a basis for determining the procurement process to be used, the potential supplier, and as a reference for the most favorable conditions for the State.

In order to comply with the above, the Law provides for the existence of a Strategic Procurement Committee (hereinafter, the "Committee"), which will be composed of representatives of the Ministry of Finance and Public Credit (the "Ministry of Finance"), the Anti-Corruption and Good Governance Secretariat (the "Anti-Corruption Secretariat" and, together with the Ministry of Finance, the "Ministries"), and the Ministry of Economy. The Committee must approve the goods or services that may be acquired, leased, or contracted on a consolidated basis, according to the policy issued by the Anti-Corruption Secretariat, although it will be the Ministry of Finance that will propose the contracting procedure to be carried out in accordance with the market research.

The Law establishes rigorous procurement procedures for the sake of transparency, efficiency, and the best possible conditions for the State. To this end, the Law allows for various procurement methods, although the general rule remains public bidding for any interested party that meets the requirements and criteria established in the respective call for proposals. As an exception to public bidding, which only applies under certain circumstances that must be substantiated and justified, the Law provides for public procurement by invitation to at least three parties or by direct award.

Newly, the law contemplates a contracting process known as "competitive dialogue." While it does not require market research, it does require the participation of at least three prequalified candidates with the capacity and resources to execute the contract. The pre-candidates will meet with the Ministry of Finance to determine the purpose and scope of the contract, as well as to discuss all aspects of the contract.

In line with the above, the Law includes direct awarding with a negotiation strategy, although this procedure can only be applied in circumstances of proven urgency, when serious damage or harm could be caused to the State in the event of delay, or when it is not possible to carry out public bidding processes or invite at least three parties. This process, although it includes short deadlines, allows for direct negotiations with suppliers under the supervision of the Secretariats.

Additionally, the Law allows for public procurement through specific contracts derived from framework agreements. Framework agreements will be entered into by the Ministries, one or more suppliers, and, where applicable, one or more entities or agencies, which will establish the specifications of the goods or services to be acquired through specific contracts or supply or service orders. Catalogs of goods or services from such framework agreements may be published in the Federal Government's Digital Store, an electronic platform that allows for the rapid acquisition of goods and services, seeking to promote transparency and efficiency in procurement.

To evaluate suppliers and their proposals, the Law establishes a system of points and percentages, promoting the use of objective and transparent criteria. This seeks to ensure that public procurement complies with the principles of transparency, impartiality, effectiveness, efficiency, economy, and honesty.

III. Digital Platform:

As part of its distinctions from previous legislation, the Law contemplates a change in the digital platform to be used by the government. Under the Law, the Compranet System will be discontinued and replaced by the Public Procurement Digital Platform (hereinafter, the "Platform"). The Platform will serve as an official, free, transactional electronic tool through which public procurement and framework agreement processes will be carried out, as well as their signing and administration. In this way, the aim is to achieve the standardization of public procurement, facilitating access to related information.

Only in certain cases, which must be exceptional and justified, may the Anti-Corruption Secretariat allow contracting processes to be carried out without using the Platform.

The Platform must be fully operational and functioning no later than 30 (thirty) months after the Law comes into force, while the modules for carrying out the contracting processes must be operational 18 (eighteen) months after the Law comes into force. Until this happens, the Compranet System will remain in force.

IV. Controversies:

Regarding disputes that may arise related to public procurement, the Law maintains the right to appeal before the Anti-Corruption Secretariat for acts related to bidding, invitations, awards, cancellations, terminations, and acts or omissions that prevent the formalization of contracts.

Additionally, the Law provides for a conciliation procedure to resolve disputes related to the fulfillment of contracts and supply orders between the parties through a mandatory hearing before the Anti-Corruption Secretariat, as well as arbitration procedures and other alternative dispute resolution mechanisms.

In line with the constitutional reform of December 20, 2024 called "organic simplification" that aimed to eliminate constitutionally autonomous organizations such as the Federal Economic Competition Commission ("COFECE”), after being reviewed and modified by the Senate and the Chamber of Deputies, the Decree that reforms, adds and repeals various provisions of the Federal Law on Economic Competition (the “Act”) and the Federal Law on Parastatal Entities is passed to the federal Executive Branch for constitutional purposes. This Decree establishes important changes in the area of ​​economic competition and creates the new National Antimonopoly Commission (the “New Commission”) which will replace COFECE.

While the reform of the Law preserves the essence of economic policy and the fundamental organizational structure of COFECE, and also fulfills Mexico's obligations under the international treaties to which it participates, it does implement substantial changes that could significantly impact companies and their operations in Mexico.

Among the relevant changes included in the reform to the Law, the following stand out:

(i) The New Commission will be a decentralized public body of the Federal Public Administration, attached to the Ministry of Economy, with legal personality and its own assets, management autonomy, and endowed with technical and operational independence in its decisions, organization, and operation;

(ii) The Plenary of the New Commission is reduced from 7 to 5 Commissioners, without determining, until now, whether they go through the filter of an Evaluation Committee and if they take knowledge exams;

(iii) The number of behaviors considered to be in violation of the law is increasing;

(iv) The thresholds that define whether a transaction must be notified to the New Commission are reduced;

(v) Some exceptions to the obligation to notify are eliminated;

(vi) the time limits for procedures are shortened;

(vii) The enforcement measures and sanctions in the event of non-compliance with the provisions of the Law are significantly increased;

(viii) The new Commission will also assume authority over competition matters in the telecommunications and broadcasting sectors;

(ix) Companies that are responsible for functions that the State exercises exclusively in strategic areas determined by the Constitution, although they are still not considered monopolies, are no longer subject to the provisions of the Law in relation to other acts; and

(x) Likewise, activities carried out by state-owned companies and those expressly indicated in the laws issued by the Congress of the Union are not considered monopolies.

The changes to the structure, powers, and responsibilities of the New Commission will result, among other things, in a greater burden of cases to investigate and resolve. We highlight some important challenges for the New Commission:

(i) Preserve COFECE's human capital with training and experience in economic competition matters;

(ii) that the Commissioners selected have the technical knowledge necessary to perform their duties;

(iii) maintain operational systems and online procedures;

(iv) take care of and maintain the confidentiality and reserve of information in the files;

(v) that in practice their management autonomy and technical and operational independence are respected; and

(vi) that it be provided with the necessary resources to fulfill its powers and obligations.

Below we describe the changes to the Law in greater detail:

Background and general comments

• On December 20, 2024, it was published in the Official Gazette of the Federation (“DOF”) the initiative for constitutional reform in the area of organic simplification, which aimed to eliminate seven autonomous constitutional bodies, including COFECE, in order to reallocate public resources that were intended for the operation and functioning of autonomous constitutional bodies, thus allowing for greater investment in social policies and programs.

• After being approved by the Senate and the Chamber of Deputies, the Decree amending, adding to, and repealing various provisions of the Federal Law on Economic Competition and the Federal Law on Parastatal Entities is now submitted to the federal Executive Branch for constitutional purposes.

• The new law does not substantially modify economic or competition policy and complies with the standards required by various international treaties signed by Mexico, including the United States-Mexico-Canada Free Trade Agreement (USMCA) and agreements with the Organization for Economic Cooperation and Development (OECD).

Structure of the New Commission

• In accordance with the new Law, the New Commission that will replace COFECE and the Federal Telecommunications Institute (“IFT”), upon assuming its powers in the area of ​​economic competition and antitrust, will be called National Antimonopoly Commission.

• The New Commission will be a decentralized public body of the Federal Public Administration, attached to the Ministry of Economy, a branch of the Federal Executive Branch. The New Commission will have legal personality and its own assets, management autonomy, and will be endowed with technical and operational independence in its decisions, organization, and operation.

• As with COFECE, the New Commission maintains the separation between the Plenary and the Investigative Authority, which reinforces independence in the evaluation of cases and avoids potential conflicts of interest.

• The number of Plenary Commissioners is reduced from seven to five, and the President's term will be three years, renewable once.

Powers of the New Commission on Telecommunications and Broadcasting

• The new Commission will now have the following powers in the areas of telecommunications and broadcasting:

• Impose limits on national and regional frequency concentration, concessions, and cross-ownership that controls several media outlets serving the same market or geographic coverage area.

• Determine the existence of predominant economic agents and impose the necessary measures to prevent competition and free trade in these sectors from being affected.

• Declare the existence or non-existence of conditions of effective competition in these sectors and, where appropriate, the imposition, modification or termination of the obligations imposed on the predominant economic agents.

• Establish measures and impose specific obligations that allow for the effective disaggregation of the local network of the predominant economic agent.

• Share information and establish coordination mechanisms with the Telecommunications Regulatory Commission and, where appropriate, with the Digital Transformation and Telecommunications Agency.

• Analyze, evaluate, and, where appropriate, authorize structural separation plans submitted by the predominant economic agents in order to reduce their national participation to below 50% in the sector in which they have been determined to be predominant.

The ability to share information and establish coordination mechanisms with the Telecommunications Regulatory Commission and, where appropriate, with the Digital Transformation and Telecommunications Agency is important.

Entry into force and transition

• Preliminary investigations and ongoing proceedings will continue to be governed by the previous law.

• The COFECE and the current Commissioners will continue in their roles until the new Commission's plenary session is formed.

• The head of the COFECE Investigative Authority will continue in his role as head of the New Commission's Investigative Authority, which will continue the ongoing investigations.

• Likewise, legal acts issued and procedures initiated by COFECE and the IFT (the latter in the area of ​​economic competition) prior to the day following the convening of the New Commission's Plenary Session will have all their legal effects in accordance with the provisions in force at the time of their initiation.

Exemption of monopolies

• Companies that are responsible for functions that the State exercises exclusively in strategic areas determined by the Constitution, while still not considered monopolies, are no longer subject to the provisions of the new Law regarding other acts.

• The activities of public state-owned enterprises and those expressly designated by laws issued by Congress shall not be considered monopolies.

Consultations from the Federal Executive

• The Federal Executive Branch, through the Ministry of Economy, is empowered to notify the New Commission regarding matters relevant to the national interest in competition matters. In these cases, the New Commission will be required to rule on the matter raised within 10 days.

Elimination of the Internal Control Body of the New Commission

• The Internal Oversight Body of COFECE is being dissolved upon the formation of the New Commission's Plenary Session; its affairs, procedures, files, and archives are being transferred to the Internal Oversight Body of the Ministry of Economy, which will assume their processing and resolution, resulting in greater interference by the Ministry of Economy. This body supervised and sanctioned administrative violations, reviewed the management of federal resources, filed criminal complaints with the Specialized Prosecutor's Office for Combating Corruption, and handled complaints regarding procurement, leasing, and services.

Changes in the Requirements to be the Holder of the Investigative Authority

• The requirement to prove that the candidate has the technical knowledge necessary to perform the position has been eliminated from the requirements for holding the position of Investigative Authority of the New Commission.

Elimination of the Commissioner Candidate Evaluation Committee

• The reformed law makes no mention of the Commissioner Candidate Evaluation Committee, which issued calls for applications, received registrations, selected and evaluated candidates, classified confidential information, and, with the support of other authorities, compiled and submitted lists of candidates to the Executive Branch.

• Its structure and budget are eliminated, as well as all its functions of convening, receiving, evaluating, classifying information, and sending lists to the Executive Branch.

Changes in the powers of the Investigative Authority and the President of the New Commission

• Inspection and data collection

In addition to requesting information, the Investigative Authority may, under the new Law, conduct inspections and collect data using any tool, without defining the meaning and scope of "inspection" and "data collection."

• Opinions on public policies

Although they were not binding, the New Commission's power to issue opinions on adjustments to public programs and policies that may affect free competition, legislative initiatives, draft regulations or decrees on competition, and laws, regulations, agreements, circulars, and general administrative acts related to free competition and economic competition has been eliminated.

• Constitutional controversies

• The requirement for the economic competition authority to inform the Federal Executive, through its Legal Counsel, about state, municipal, or Mexico City acts or regulations that could violate the Constitution in matters of economic competition has been eliminated.
  • The duty of the Legal Counsel of the Federal Executive to publish his reasons in the cases he decides is also eliminated. No. initiate a constitutional controversy based on the report submitted by the economic competition authority.
  • The power of both the New Commission and its President to initiate constitutional disputes against acts or provisions of autonomous bodies, the Congress of the Union, or the Federal Executive Branch is eliminated.

• International cooperation
  • The power to establish, under international agreements and in coordination with the Ministry of Foreign Affairs, mechanisms for cooperation and coordination with foreign competition authorities is added, including the exchange of all types of information for investigations and proceedings under the Law.

Modifications to Monopolistic Practices

• Absolute monopolistic practices: The assumptions for this type of practice now include that they occur not only between current competitors but also between potential competitors.

• Relative monopolistic practices:

• A new object or effect is added, consisting of unduly limiting the ability of other economic agents to compete.
  • The concept of joint substantial power in the relevant market is elevated to the rank of law.

It will be important to know how the New Commission interprets these two new provisions in due course.

Concentrations

• The three reporting thresholds are reduced by 12% to 17%, and the first part of the second threshold is reduced to 30% of assets or shares (previously 35%).

• The resolution period is reduced from 60 to 30 days after the New Commission receives all the information; this period may be extended, except when the Federal Executive explicitly notifies the New Commission of a matter of national interest.

• The time limit for investigating unnotified concentrations was extended to three years, instead of one, from their completion.

• Stricter requirements are included for market efficiency gains resulting from a merger. Now, economic agents must also demonstrate that the efficiency gains: (i) will consistently outweigh their potential anticompetitive effects; and (ii) will result in improved consumer welfare.

• Two exceptions to reporting have been eliminated: foreign transactions that do not acquire control or accumulate participation in Mexico, and acquisitions made by investment funds for speculative purposes without overlaps in the same market.

Research

• The Investigative Authority's investigation period is limited to just three periods of up to 3 days each.

• Once the investigation period concludes, the Investigating Authority must submit its opinion to the New Commission's plenary session within 30 days.

• Once this opinion is submitted, a period of 10 business days is established for the Plenary to decide whether to initiate a trial or close the file.

The concept of Joint Substantial Power is added

• The concept of joint substantial power is added to the catalogue of criteria.

• In determining whether two or more agents have substantial joint power, the New Commission will consider:

• Common incentives or interdependent strategic behavior that distinguish these agents from the rest of the market; and

• Similar behavior patterns among them.

It will be important to know how the New Commission will interpret and apply this new concept in due course, as it could have significant consequences.

Qualification Procedure

• The request by economic agents to exclude from the file information and documents related to communications with their external lawyers that have been obtained by the New Commission or provided by the economic agents and that are intended to obtain legal advice has been elevated to the rank of law.

Immunity and Waiver Program

• Relative Monopolistic Practice or Illicit Concentration

• Depending on the timing and conditions, the economic agent subject to investigation for relative monopolistic practices or unlawful concentration may obtain the full benefit of exemption or reduction of the amount of the fines without incurring any liability, or obtain a reduction of up to 50% of the fine to which it would have been subject.

• Absolute Monopolistic Practice

• Now, only the first economic agent to provide the New Commission with evidence to presume the existence of an absolute monopolistic practice before an investigation is initiated in the corresponding market and who also (i) cooperates fully and continuously in the substantiation of the investigation and in the proceedings followed in the form of a trial; and (ii) takes the necessary steps to end its participation in the practice that violates the Law will be imposed a minimum fine.

• Other economic agents that (i) fully and continuously cooperate in the conduct of the investigation and in the proceedings conducted in the form of a trial; and (ii) take the necessary actions to end their participation in the practice that violates the Law, may obtain a reduction of their fine of up to 50, 30, or 20% of the maximum allowed, when they also provide evidence in the investigation, in addition to those already held by the Investigating Authority, which allows for the presumption of the existence of an absolute monopolistic practice.

Certification of Economic Competence Programs

• The New Commission will be able to certify antitrust compliance programs implemented by companies for a period of three years, and the existence of such a program may be considered a mitigating factor for companies in the event of noncompliance.

Sanctions and enforcement measures

• Coercive measures

• A daily fine of up to approximately $900,000 pesos is imposed for late compliance with the New Commission's orders.

• A fine of up to approximately $3 pesos is imposed for failing to appear before an authority without just cause, failing to answer questions, or answering them ambiguously.

• A fine of up to approximately $22 pesos is imposed for preventing or obstructing the conduct of a verification visit.

• A daily fine of up to approximately $1 pesos is imposed for violating a disqualification order.

• The New Commission can now apply enforcement measures independently of the corresponding criminal and administrative sanctions. That is, it does not require prior enforcement measures to be exhausted..

• Increase in penalty amounts

The maximum amounts of penalties are generally increased, including:

• For absolute monopolistic practices: 10% to 15% of the economic agent's income.

• For relative monopolistic practices: 8% to 10% of the economic agent's income.

• For having carried out a concentration that exceeds the thresholds without prior authorization: from 5% to 8% of the economic agent's income;

• For illicit concentrations: 8% to 10% of the economic agent's income.

• New sanction

• Temporary disqualification (direct or through an intermediary) from participating in public procurement for up to 5 years.

• Recidivism

• The final administrative resolution of the New Commission is now considered a preliminary sanction.

• Damages

• Individuals who suffer harm or damage due to a monopolistic practice or an unlawful concentration may bring the appropriate individual or collective legal actions to defend their rights, as soon as the New Commission issues the respective resolution, without it being necessary for the resolution to become final.
  • The New Commission will now also be able to bring such individual or collective legal actions.

• Federal Law on Parastatal Entities

A paragraph is added to Article 5 of the Federal Law on Parastatal Entities that establishes an exceptional regime as a Parastatal Entity for the New Commission.

Pursuant to the foregoing, the New Commission shall be governed, in terms of its governing body structure, administrative units, organization, functioning, operation, development, and control, by the provisions of the new Law and its organic statute, and, only in matters not provided for by these, by the Federal Law on Parastatal Entities.