Introduction
Although no specific date has been announced, the Comisión Federal de Competencia Económica (COFECETE) and the Instituto Federal de Telecomunicaciones (IFT) are on a path towards extinction. They are accused of being part of the neoliberal framework and will likely be dismantled by the end of this year or early next, as part of a centralist governmental transformation that reverts to past practices known as “estatismo.”
Background and Relevance
COFECETE and IFT are Mexico’s autonomous regulatory bodies responsible for promoting competition in their respective sectors. COFECETE focuses on economic competition across various markets, while IFT specializes in telecommunications. Both organizations have been crucial in maintaining a competitive environment, preventing monopolies, and protecting consumer interests.
Who are COFECETE and IFT?
COFECETE, established in 1990, is responsible for enforcing Mexico’s competition laws across multiple sectors, including agroalimentary, financial, energy, healthcare, transportation, and public procurement. IFT, created in 2013 through the merging of the Federal Telecommunications Institute (IFT) and the Federal Consumer Prosecutor’s Office (PROFECO), regulates telecommunications and broadcasting in Mexico.
Why are they relevant?
These organizations play a vital role in ensuring fair competition, preventing anti-competitive practices, and safeguarding consumer rights. Their work has led to significant advancements in various sectors, including reducing the market dominance of companies like América Móvil in telecommunications.
Current Situation and Challenges
Both COFECETE and IFT have faced severe budget constraints in 2025, operating with less than a third and 70% less of their originally requested funds, respectively. Despite these challenges, they have made substantial progress in their areas of responsibility.
COFECETE’s Achievements
- Intervened in key sectors such as agroalimentary, finance, energy, healthcare, transportation, and public procurement.
- Impacted approximately 40% of Mexico’s economy, according to the World Bank.
- Managed over 150 merger operations (10% of GDP) and investigated 25 cases of anti-competitive practices in crucial markets like digital financial services and natural gas.
- Generated consumer benefits worth 30,697 million pesos (approximately) by correcting anti-competitive practices in 2023.
- Prevented overcharging in the healthcare sector, benefiting both public finances and consumers.
IFT’s Achievements
- Resolved 823 significant matters, a 50% increase from 2023.
- Addressed spectrum radioelectric regulation, concession oversight, and competition promotion in telecommunications and broadcasting.
- Imposed substantial fines on companies such as América Móvil, Televisa, and Megacable.
- Reduced Telcel’s market share in mobile telecommunications from 69% to 59% and fixed internet from 72% to 37%.
- Collected approximately 18,412.33 million pesos (around 901 million USD) in 2024 from spectrum radioelectric oversight, concession allocation and renewal, penalties for concession holders, and other regulatory procedures.
- Generated nearly 5,000 million USD in revenue from regulatory work between 2019 and 2024, including spectrum supervision and economic competition in telecommunications and broadcasting.
Future Uncertainty
The impending extinction of COFECETE and IFT raises concerns about a return to discretionary regulation, potentially leading to the resurgence of monopolistic and oligopolistic practices. The future of these organizations, along with their successors, remains uncertain.
Key Questions and Answers
- What are COFECETE and IFT? COFECETE and IFT are Mexico’s autonomous regulatory bodies responsible for promoting competition in their respective sectors.
- Why are they important? These organizations ensure fair competition, prevent anti-competitive practices, and safeguard consumer interests across various sectors.
- What challenges do they face? Both COFECETE and IFT have faced significant budget constraints in 2025, operating with drastically reduced funds.
- What have they achieved? Despite budget limitations, COFECETE and IFT have made substantial progress in their areas of responsibility, impacting key sectors and generating consumer benefits.
- What is the future of these organizations? The extinction of COFECETE and IFT’s autonomy raises concerns about a return to discretionary regulation, potentially leading to the resurgence of monopolistic and oligopolistic practices.
