Background on Andrea Marván and the Cofece
Andrea Marván Saltiel, the current president of Mexico’s Federal Economic Competition Commission (Cofece), has emphasized the need for sufficient resources for the newly formed National Antimonopoly Commission (CNA). The Cofece is set to be replaced by the CNA, which will assume additional responsibilities and thus require a budget expansion.
Legislative Developments
On Monday, the Chamber of Deputies discussed the project of the decree to reform the Federal Economic Competition Law (LFCE) and the Federal Law of Para-State Entities, which was approved by the Senate on June 28. This reform establishes the new CNA, enhancing its investigative capabilities and expanding its supervisory reach over economic agents’ concentrations.
- The CNA will have increased investigative power and higher penalties for LFCE violations, reaching up to 15% of the offending companies’ income.
- The CNA will oversee competition in telecommunications and radio broadcasting, as well as apply asymmetric regulation to dominant players in those sectors, currently under the jurisdiction of the Federal Telecommunications Institute (IFT), which is also facing extinction.
Historical Context and Funding Concerns
The Cofece faced budget stagnation during President Andrés Manuel López Obrador’s administration, who frequently criticized the organization. In 2024, the Cofece operated with a budget of over 700 million pesos, which was 3% less in real terms compared to 2018.
With this budget, the Cofece supervised competition across most sectors of Mexico’s economy (worth 33.9 billion pesos) out of the federal government’s total expenditure of 9.2 trillion pesos.
Government Support and CNA Structure
Marván highlighted the federal government’s and legislators’ openness to Cofece’s proposals for LFCE reform and the design of the new CNA, which she believes will enable Mexico to fulfill its T-MEC commitments.
- The CNA will have technical independence and be governed by a collegiate body of five commissioners with staggered seven-year terms.
- Commissioners must have at least eight years of experience and will be appointed by the Federal Executive, subject to ratification by the Senate, which can remove them only for serious causes outlined in law.
Although the CNA will not have constitutional autonomy, it will be a decentralized entity with its own assets and the ability to directly request its budget, placing it at the highest level of international practices.
Addressing Talent Concerns
Marván addressed uncertainties surrounding the CNA’s composition and resource absorption from the Cofece, stating that there has been minimal talent loss.
“There have been some personnel changes and rotations, but the turnover has been low. The Commission has continued to operate, and we have actually analyzed and are addressing the highest number of concentrations in our history during this first half,” she revealed.
Key Questions and Answers
- What is the purpose of the new National Antimonopoly Commission (CNA)? The CNA aims to strengthen competition oversight in Mexico, enhancing investigative capabilities and expanding its supervisory reach over economic agents’ concentrations. It will also oversee competition in telecommunications and radio broadcasting.
- Why is adequate funding crucial for the CNA? The CNA’s expanded responsibilities require sufficient resources to effectively carry out its duties and ensure Mexico meets its T-MEC commitments.
- How will the CNA be structured and governed? The CNA will have technical independence, governed by a collegiate body of five commissioners with staggered seven-year terms. Commissioners must have at least eight years of experience and will be appointed by the Federal Executive, subject to ratification by the Senate.
- Has there been any talent loss from the Cofece to the CNA? Despite some personnel changes, there has been minimal talent loss, and the Cofece has continued to operate effectively.
