Mexico Moves Forward with Reform to Eliminate Key Regulators, Including Competition Watchdog

The Mexican Chamber of Deputies’ Commission on Constitutional Points approved a contentious reform bill that seeks to do away with several autonomous agencies, including those responsible for transparency, economic competition, and telecommunications regulation. The vote, passed with the support of ruling party Morena and its allies, sets the stage for further debates in the full Congress, where the legislation could be finalized as early as September.

The reform, part of President Andrés Manuel López Obrador’s broader “Plan C,” proposes the elimination of key institutions such as the National Institute for Transparency, Access to Information and Personal Data Protection (INAI), the Federal Economic Competition Commission (Cofece), the Federal Telecommunications Institute (IFT), and others. The functions of these agencies would be transferred to various federal government departments, a move that has sparked widespread concern, particularly in the areas of antitrust regulation and transparency.

According to Sin Embargo, the reform was approved in general terms by a vote of 22 in favor and 17 against, reflecting the deep political divide over the issue. The opposition, unified in its opposition to the bill, was unable to muster enough votes to block it. Critics argue that the dissolution of these agencies could undermine critical checks on government power and weaken protections for fundamental rights.

Adrián Alcalá, the president commissioner of INAI, has been vocal in his opposition to the reform. He warned that approval of the bill would go against the constitutional principle of progressivity, which mandates that authorities should continually advance and expand the protection of human rights. Alcalá emphasized the need for a genuine and inclusive dialogue to develop a new legal framework that ensures continued access to information and protection of personal data.

“We are living through crucial times with significant consequences for the guarantee of fundamental rights across Mexico, particularly the right to access information and the protection of personal data. Should this reform pass, we would face an unprecedented and adverse scenario in the exercise of these fundamental rights,” Alcalá stated earlier this week, as reported by Sin Embargo.

Commissioners from INAI and other affected agencies have stressed that their elimination would represent a significant regression in the protection of these essential rights. They have called for an open parliamentary process that includes diverse societal input to craft necessary reforms without dismantling the institutions that currently safeguard these rights.

President López Obrador has defended the proposed reform, arguing that it would result in substantial savings. In July, he claimed that eliminating these autonomous bodies could save the government approximately 100 billion pesos annually. López Obrador has also framed the reform as part of his broader agenda of republican austerity, stating that transferring the functions of these agencies to federal ministries would streamline government operations without resulting in job losses.

“Moving the National Institute for Transparency’s functions to the Ministry of Economy, transferring the Federal Telecommunications Institute to the Ministry of Communications and Transport, and shifting energy-related bodies to the Federal Electricity Commission and Pemex, would be part of a major administrative reform that would save around 100 billion pesos a year,” López Obrador stated, per Sin Embargo.

The President has argued that these autonomous bodies were originally created to allow for the privatization of key sectors of the economy and that their elimination would allow the government to be more effective and efficient, freeing up resources for social programs that directly benefit the population.

As the bill moves to the full Congress for debate, it is expected to face intense scrutiny, particularly from opposition parties and civil society groups concerned about the potential impact on Mexico’s antitrust framework and transparency standards. If the reform is approved, it will then be sent to the Senate for further consideration, marking a critical juncture in the ongoing battle over the future of Mexico’s regulatory landscape.

Source: El Mexicano