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Legal briefing

From Autonomy to Centralization: Implications of Mexico’s Organizational Simplification Reform for the future of Economic Competition

28/11/2024

The recent approval of Mexico’s organizational simplification reform marks a turning point for the country's institutional and legal framework. This initiative proposes the dissolution of key constitutionally autonomous bodies, such as COFECE and IFT, transferring their functions to the Executive Branch. Its implications are profound, impacting economic competition and strategic sectors like energy and telecommunications.

The Mexican Congress has approved a reform aimed at streamlining the state’s structure by eliminating autonomous entities and centralizing their functions under federal agencies. While proponents argue that this measure could enhance administrative efficiency and reduce costs, it raises significant concerns about the loss of institutional independence, the impact on strategic sectors, and vulnerability to political interference. The proposal still requires state-level approval and adjustments to secondary legislation, but it could fundamentally reshape the nation’s institutional landscape.

At Pérez-Llorca México, we are closely monitoring this process to provide specialized advice and support in navigating the challenges that may arise.

Consult the full content of the Legal Briefing here. 

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