Reform of Mexico’s Federal Economic Competition Law: What Companies Need to Know

In July 2025, Mexico enacted one of the most significant reforms to its competition law framework since the constitutional overhaul of 2013.

The reform to the Federal Economic Competition Law (Ley Federal de Competencia Económica, or LFCE), published on July 16, 2025, introduces institutional, procedural, and substantive changes that directly affect how companies operate, structure transactions, and manage regulatory risk in Mexico.

Much of the public discussion has focused on the creation of a new competition authority: the National Antitrust Commission (Comisión Nacional Antimonopolio, or CNA).

However, for many companies another change may prove equally — if not more — important in practice:

the possibility of obtaining official certification of corporate competition compliance programs.

This new mechanism reflects a broader shift in regulatory philosophy.

Historically, many companies addressed competition law risks only after an investigation began.

The reform signals a different approach.

Prevention now plays a central role.

In this article we examine:

• the key changes introduced by the reform

• the role of the new competition authority

• certification of antitrust compliance programs

• what companies should do to prepare

What changed under Mexico’s competition law reform

The reform introduces three major structural changes to Mexico’s competition regime.

1. Creation of a new competition authority

The reform establishes the National Antitrust Commission, which will assume the functions previously exercised by the Federal Economic Competition Commission.

During a transitional period, the existing authority will continue operating until the new commission is fully integrated.

2. Stronger sanctioning regime

Under the updated legal framework, fines for cartel conduct can reach up to 15% of the company’s total revenue, placing Mexican antitrust penalties among the most significant administrative sanctions in the country’s regulatory system.

3. Certification of competition compliance programs

The reform introduces a mechanism allowing companies to obtain certification of internal compliance programs designed to prevent antitrust violations.

This represents one of the most innovative aspects of the new framework.

A new institutional framework for competition enforcement in Mexico

A central element of the reform is the creation of the National Antitrust Commission as the authority responsible for enforcing competition law in Mexico.

The CNA is designed as a public body with technical and operational autonomy, responsible for applying the Federal Economic Competition Law and overseeing competitive conditions in Mexican markets.

The institutional redesign aims to strengthen antitrust enforcement by providing a regulator with expanded investigative and supervisory capabilities.

Several changes stand out.

Expanded investigative powers

The reform strengthens the authority’s ability to investigate potential anticompetitive conduct, including enhanced tools for analyzing market behavior and corporate practices.

Potentially faster procedures

The new framework also introduces adjustments to procedural timelines intended to streamline investigations and administrative proceedings.

In practice, this could result in more dynamic enforcement of competition law.

Broader oversight of mergers and acquisitions

The reform also modifies certain merger notification thresholds, potentially increasing the number of transactions subject to review.

For companies engaged in mergers, acquisitions, or joint ventures in Mexico, this means that more transactions may require regulatory clearance before closing.

Higher fines and increased regulatory risk

The sanctioning regime established under the Federal Economic Competition Law imposes significant penalties on companies that engage in anticompetitive practices.

In particular, hard-core cartel conduct — such as agreements between competitors to fix prices, divide markets, or manipulate bids — may result in fines of up to 15% of the company’s revenues.

Beyond monetary fines, the law allows authorities to impose additional measures, including:

• orders to cease anticompetitive conduct

• structural or behavioral remedies

• potential liability for executives involved in unlawful conduct

• restrictions related to public procurement in certain circumstances

These enforcement tools reflect a broader international trend: competition policy has become a key regulatory priority worldwide.

But the reform does more than increase penalties.

It also introduces incentives for prevention.

Antitrust compliance programs in Mexico

One of the most notable innovations in the reform appears in Article 139 of the Federal Economic Competition Law.

This provision allows the authority to certify compliance programs implemented by companies to prevent and detect violations of competition law.

In practical terms, companies may submit their internal compliance programs for evaluation by the competition authority.

If the program meets the required standards, the authority may issue a certification valid for three years.

It is important to clarify one point.

Certification does not eliminate liability if a company commits a violation.

However, the law provides that the authority may consider the existence of a certified compliance program as a mitigating factor when determining sanctions.

In other words:

A compliance program does not guarantee immunity.

But it can reduce the severity of penalties if a violation occurs.

From reaction to prevention: a shift in regulatory philosophy

For many years, companies tended to implement antitrust policies only after facing regulatory scrutiny.

The reform encourages a different approach.

Competition authorities increasingly expect companies to prevent anticompetitive conduct internally rather than relying solely on enforcement after the fact.

Certification of compliance programs may therefore serve as a way for companies to demonstrate that they have taken reasonable steps to prevent violations of competition law.

This can become particularly relevant in enforcement proceedings.

What is an antitrust compliance program?

An antitrust compliance program is a set of policies, internal controls, and monitoring mechanisms designed to prevent conduct that may violate competition law.

These programs typically aim to prevent practices such as:

• price-fixing agreements between competitors

• market allocation arrangements

• bid-rigging in public procurement processes

• improper exchange of competitively sensitive information

These types of conduct are among the most serious violations under competition law.

A compliance program seeks to ensure that such practices do not occur within the organization.

In essence, it integrates competition law compliance into the company’s corporate culture and daily operations.

Key elements of an effective compliance program

Although specific certification criteria will likely be defined through regulatory guidelines, international best practices provide a clear framework for effective compliance programs.

Risk assessment

The first step is identifying where antitrust risks may arise within the company.

Examples include:

• interactions with competitors

• participation in trade associations

• public procurement activities

• exchanges of commercially sensitive information

Clear internal policies

Companies should adopt clear policies governing interactions with competitors, information sharing, and participation in industry associations.

Employee training

Executives and commercial teams should understand which types of conduct are prohibited under competition law.

Many antitrust violations occur simply because employees are unaware of legal boundaries.

Internal reporting channels

Whistleblowing mechanisms allow employees to report potential violations before they escalate.

Monitoring and auditing

Regular audits help ensure that compliance policies are effectively implemented.

Which companies should consider certification?

In principle, any company can benefit from a competition compliance program.

However, regulatory risk tends to be higher in certain circumstances.

For example:

Companies with significant market share

Businesses with substantial market power typically face greater regulatory scrutiny.

Industries with high market concentration

Sectors such as energy, transportation, telecommunications, construction, food, and pharmaceuticals frequently attract attention from competition authorities.

Companies participating in public procurement

Bid-rigging and collusion in public tenders are common targets of antitrust investigations worldwide.

Businesses with frequent interaction among competitors

The more frequently competitors interact, the greater the risk of improper coordination.

For companies operating in these contexts, a robust compliance program — and potentially certification — can be a valuable risk-management tool.

Why international companies operating in Mexico should pay attention

Foreign companies doing business in Mexico should review their antitrust compliance policies in light of the reform.

Even when a company is headquartered abroad, Mexican competition law may apply if its conduct affects Mexican markets.

The introduction of certified compliance programs suggests that companies operating in Mexico may increasingly be expected to adopt formal antitrust compliance frameworks.

For multinational companies, aligning global compliance policies with the Mexican legal framework may help reduce regulatory exposure.

Key takeaways for companies

• The reform creates the National Antitrust Commission.

• Cartel conduct may result in fines of up to 15% of company revenues.

• Companies can now seek certification of competition compliance programs.

• Certified programs may mitigate sanctions in enforcement proceedings.

Frequently asked questions about Mexico’s competition law reform

What changed under Mexico’s Federal Economic Competition Law reform?

The reform introduces institutional changes, including the creation of the National Antitrust Commission, stronger enforcement powers, and the possibility of certifying corporate competition compliance programs.

What is certification of an antitrust compliance program?

It is a mechanism through which the competition authority can review and certify a company’s internal compliance program designed to prevent violations of competition law.

Does certification prevent sanctions?

No. Certification does not eliminate liability. However, the authority may consider the existence of a certified program as a mitigating factor when determining sanctions.

How long does certification last?

Certification is valid for three years under Article 139 of the law.

Which companies should consider certification?

Companies with significant market share, those operating in concentrated industries, or businesses that regularly participate in public procurement may particularly benefit from robust compliance programs.

Is your company prepared?

The reform of the Federal Economic Competition Law represents a significant development in Mexico’s regulatory environment.

Beyond increased sanctions, the new framework encourages companies to adopt a preventive approach to competition law compliance.

At UPLAW – The Legal Company, we assist companies with:

• assessing antitrust risk exposure in Mexico

• designing effective compliance programs

• preparing certification processes before the competition authority

Request an initial assessment to evaluate whether your company should implement a competition compliance program in Mexico.

You can also subscribe to UPLAW Insights, our newsletter, where we share practical legal analysis on corporate law, compliance, and regulatory developments affecting companies operating in Mexico.

Further Reading

For readers interested in exploring the legal framework and policy background of the reform in greater detail, the following sources may be useful:

• Cannizzo – Reform of the Federal Economic Competition Law (LFCE)

• Olivares – CNA in charge: thresholds down, fines up

• Creel – Client Alert: Reform to the Federal Economic Competition Law

• Basham – Nace la nueva Comisión Nacional Antimonopolio (CNA)

These materials can help companies better understand the evolving regulatory environment and how competition compliance programs are implemented in different jurisdictions.