Mexico: How Antitrust Oversight is Shaping Mexico’s Digital Ecosystem

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Today, everything revolves around digitisation: every company is transforming itself into a digital service or platform, every business is trying to participate more and more in e-commerce through its own or third-party platforms, and new large businesses are being created as digital platforms.

Increasingly, the digital world and technological tools are defining the way in which society informs itself, comparing and making decisions to purchase products and services, and generating new forms of interaction between suppliers and consumers with rules that are very different from the dynamics of traditional markets, while production processes are integrated and become dependent on technologies and telecommunications.

Today, cloud computing, big data, the internet of things and artificial intelligence have disruptively transformed various sectors and industries, and while they have generated lower costs and brought many benefits for consumers, they also raise new challenges to protect and promote innovation, the process of competition, the protection and privacy of personal data, and the protection and promotion of freedom of speech and access to information.

Digital markets are dynamic, with abrupt changes, high levels of concentration and a convergence between traditional models and innovative models that are little or not regulated at all, which call into question traditional concepts and tools, ranging from techniques to define a relevant market to the application of the SSNIP[2] test, particularly in the case of ‘multi-sided’ markets.

In Mexico, as in the rest of the world, digital platforms are technologies that are creating spaces for aggregating content and services, connecting users (in this case, consumers with producers or providers) through communication, carrying out transactions (e.g., buying and selling products or services) and sharing information.

Although competition authorities are working to ensure competition in digital markets, based on the technical knowledge required and the constant evolution of the digital economy, it is difficult to apply traditional competition laws and economic principles to this sector. This represents a continuous challenge as competition authorities face not only technical difficulties but also geographical problems because of the global scope of digital economies, which requires cross-border cooperation between different competition authorities.

This chapter seeks to address and set forth some of the challenges faced by the Mexican antitrust authorities, particularly the Federal Economic Competition Commission (COFECE) and the Federal Telecommunications Institute (IFT) (the Mexican Antitrust Authorities), as well as the criteria upheld by the Mexican specialised courts over the past few years. This chapter will also highlight some of the key cases that have been analysed by the Mexican Antitrust Authorities regarding digital markets in recent years.


Both Mexican Antitrust Authorities have undergone a number of successful cases in digital enforcement in the past couple of years; however, there exists a challenge arising from Mexico’s unique situation, which may not be common in other jurisdictions: unlike in other jurisdictions, regarding antitrust and competition matters in Mexico, there are two different competition authorities with equal hierarchy that are responsible for the enforcement of the same law.

Pursuant to Article 28 of the Political Constitution of the United Mexican States, COFECE is an autonomous agency with legal personality and assets of its own. Its purpose is to guarantee free and open competition and access to the markets, as well as to prevent, investigate and prosecute monopolies, monopolistic practices, unlawful concentrations and other restrictions to the efficient functioning of the markets.

Likewise, also in accordance with Article 28, the IFT is an autonomous agency with legal personality and its own assets whose purpose is to guarantee free market access and economic competition, but exclusively in the broadcasting and telecommunications sectors.

Jurisdictional conflicts

In light of the above, the IFT is the authority with exclusive powers in the broadcasting and telecommunications sectors, while COFECE is the authority with exclusive powers in the other sectors. Although this distinction seems, in principle, simple, it has generated doubts and jurisdictional conflicts between both authorities on five occasions, including three regarding digital markets and platforms (one in 2020, one in 2021 and one in 2022).

Article 5 of the Federal Economic Competition Law (the Competition Law) provides a procedure in cases where a competition conflict arises between the Mexican Antitrust Authorities (i.e., if either or neither of them accepts jurisdiction over a certain matter or case). The Article states the following:

When one of the entities mentioned in the previous paragraph [the IFT or COFECE] has information that its counterpart is processing a matter under its jurisdiction, it shall require the submission of the corresponding file. If the requested entity acknowledges its own lack of jurisdiction to resolve in a given case, it shall submit the file, within the following five days after receiving the request. In case the entity considers that it has jurisdiction in a given case, it shall notify the requesting entity of its resolution in the same period, suspending the procedure and submitting the file to the specialized Federal Collegiate Circuit Court in Economic Competition, Broadcasting and Telecommunications, which shall resolve on the jurisdictional issue within a period of ten days.

In case one of the entities mentioned in paragraph one of this article is processing a matter and considers it lacks the jurisdiction to resolve it, said entity shall submit the corresponding file to the other entity within the following five days. If the latter accepts it has jurisdiction, it shall further undertake the procedure of the case, on the contrary, within the following five days, it shall notify the entity that it has declined jurisdiction of the case and submit the file to the specialized Federal Collegiate Circuit Court in Economic Competition, Broadcasting and Telecommunications, which shall resolve on the jurisdiction issue in a period of ten days.

To date, there have been only six jurisdictional conflicts between the Mexican Antitrust Authorities that have been resolved by the specialised courts. Of those, only the most recent three have been related to digital markets.

The first digital markets case was related to the merger between Uber and Cornershop.

The second case involved an investigation into barriers to entry and essential facilities in the markets of online search services, social networks, mobile operating systems and cloud computing services.

The third case related to the jurisdiction regarding over-the-top (OTT) services in the context of the merger between Discovery and WarnerMedia.


This merger control case involved the acquisition of Cornershop by Uber. Cornershop is a home shopping and delivery application for supermarkets and local retail stores (a grocery shopping app). Uber is a transportation or ride-sharing app.

The parties initially submitted the pre-merger filing with COFECE; however, the IFT considered itself to have jurisdiction over the case and to analyse the transaction. Since both Mexican Antitrust Authorities considered themselves to have jurisdiction, the case was forwarded to a federal circuit court, as provided for in the Competition Law.

The IFT considered that it had jurisdiction over the transaction since both Uber’s and Cornershop’s activities were carried out through digital platforms and through internet signals, which, according to the IFT, were a part of the telecommunications sector and therefore within the scope of the IFT’s jurisdiction and not COFECE’s.

On the contrary, COFECE argued that the transaction fell under its jurisdiction, arguing that Uber’s and Cornershop’s services related to the intermediation and logistics services, which are not part of the telecommunications and broadcasting sector. COFECE also considered that, although Cornershop and Uber use the internet to provide their services, their economic activities (i.e., intermediation) are independent from the internet and do not in any way have an impact on the telecommunications sector.

The case was assigned to the First Collegiate Circuit Court in Administrative Matters, specialised in Economic Competition, Broadcasting and Telecommunications (the First Specialised Court), which, after a long analysis extending over six months, ruled in favour of COFECE. The First Specialised Court agreed with COFECE in the sense that ‘the underlying economic activity remains the same, regardless of the channel used [in this case, the internet] for the commercialisation of the product or service in question’,[3] and that a comprehensive assessment must be made to identify the competitive dynamics with traditional businesses to determine which is the competent Mexican Antitrust Authority.

This case represented the first merger between platforms ever reviewed and cleared unconditionally by COFECE.

Investigation into barriers to entry and essential facilities

This jurisdictional conflict between COFECE and the IFT derived from an investigation initiated by the IFT to identify barriers to entry or essential facilities in the markets of online search services, social networks, mobile operating systems and cloud computing services.

The IFT initiated the investigation because there seemed to be a lack of effective competition conditions in those markets owing to several reasons, including a reduction in the number of competitors within some of the investigated markets because of a generalised practice of purchasing companies that represent a potential threat (i.e., killer acquisitions) and a high degree of concentration in the hands of very few economic agents.

When COFECE became aware of the IFT’s investigation, it requested the IFT to forward the investigation, arguing that those markets were not related to the telecommunications and broadcasting sectors and that the use of the internet was not sufficient to grant jurisdiction to the IFT, as this would mean an improper extension of its original jurisdiction. The IFT, in turn, rejected the request, arguing that the internet fell under its jurisdiction based on its constitutional purpose, which is the efficient development of telecommunications and broadcasting, for which it holds the responsibility of the regulation, promotion and supervision of, among other things, access to active and passive infrastructure and other essential inputs. In this regard, the IFT stated that broadband and transition towards internet protocol networks favoured an integration and interconnection of markets that had previously not been considered connected.

As the Mexican Antitrust Authorities did not reach an agreement, the case was sent to the First Specialised Circuit Court. In its ruling, the Court agreed with COFECE that jurisdiction over online search services, social networks and cloud computing did not require the use or exploitation of spectrum frequencies related to telecommunications and broadcasting, and that the main players in those markets were not active in telecommunications or broadcasting. It also mentioned that, although the operation of digital platforms involves specialised techniques and technological complexities that the IFT is competent to know, the nature of the underlying economic activities must be considered as well (as determined in the Uber/Cornershop pre-merger filing); therefore, COFECE should have jurisdiction to deal with those markets.

Regarding jurisdiction over mobile operating systems, the First Specialised Circuit Court ruled, in summary, that, in accordance with the Federal Telecommunications and Broadcasting Law, the IFT has the authority to issue technical guidelines regarding the infrastructure and equipment connected to telecommunications networks, as well as in matters of homologation and conformity assessment of such infrastructure and equipment; therefore, the Court noted the necessary link between operating systems and mobile equipment with public telecommunications and broadcasting services and, consequently, determined that the IFT should have jurisdiction over the market of mobile operating systems.


In the acquisition of WarnerMedia by Discovery, the parties submitted the pre-merger filing before both Mexican Antitrust Authorities, as some of the markets in question were under the jurisdiction of COFECE (e.g., intellectual property licensing for consumer products) and others were under the jurisdiction of the IFT (e.g., pay TV services). Both authorities considered themselves to have jurisdiction in OTT platforms; therefore, the case was forwarded to a federal circuit court, as provided for in the Competition Law.

As in previous precedents, the Second Collegiate Circuit Court in Administrative Matters considered that to determine the authority that should have jurisdiction over the OTT markets, the underlying nature of the activity and the key players within the relevant sector should be taken into consideration.

The Court ruled that the IFT should analyse the market, given that the nature of the OTT platform is the remote distribution of content through the internet, which itself is based on telecommunications networks. Consequently, even though the distribution of audiovisual content over the internet does not require a concession, as is the case for pay TV, telecommunications networks are necessary for the transmission of the platforms’ content; hence, audiovisual content is not independent from the telecommunications sector.

The Court also argued that this connection is evidenced by the asymmetric regulations imposed by the IFT on the preponderant economic agent in the broadcasting sector (Televisa), previous pre-merger filings and a previous jurisdictional conflict (AT&T/Time Warner) in which the court ruled that the distribution of audiovisual content through cinema, physical or digital forms falls under the jurisdiction of COFECE, whereas streaming platforms fall under the jurisdiction of the IFT.

This jurisdictional conflict lasted five months, during which the merger review process by both Mexican Antitrust Authorities was suspended.

First precedents

Uber/Cornershop, the investigation into barriers to entry and essential facilities and Discovery/WarnerMedia represent the first precedents involving multi-sided markets or platforms. Prior to those cases, there had been no clarity regarding which of the Mexican Antitrust Authorities had jurisdiction to review and analyse matters involving those markets and industries, and private parties had to conduct their own assessment and, in many instances, guess what the position of the Mexican Antitrust Authorities would be regarding a given market; in other words, although both Mexican Antitrust Authorities had previously conducted investigations into digital markets, those three cases were the first investigations expressly aimed at digital platforms.

Although each case has its particularities and may differ from one another, these precedents serve as guidance for future transactions, allowing the parties involved to focus on the markets being impacted by their activities, rather than on the inputs being used to conduct their activities.


Both Mexican Antitrust Authorities have been more active in terms of investigations into digital markets. Among other actions, there have been several ex officio investigations and market probes.

COFECE has conducted:

  • an investigation for potential relative monopolistic practices (abuse of dominance) in the market of e-commerce platform services in Mexico;[4]
  • a market probe to determine the existence of barriers to entry or essential facilities in the market of payment services that involve compensation of payments through debit and credit cards;[5]
  • a market study relating to the retail of food and beverages;[6]
  • a market probe to determine the existence of barriers to entry or essential facilities in the retail e-commerce market; and[7]
  • an investigation for potential relative monopolistic practices (abuse of dominance) in the market of development, marketing and sale of digital goods or services, or both (i.e., e-books, software, video games, photographs, music and online movies, among others).[8]

Similarly, the IFT (in addition to the barriers investigation that gave rise to the jurisdiction conflict mentioned previously in this chapter) initiated a probe into potential abuse of dominance in the market of production, distribution and commercialisation of content transmitted through the internet (streaming), as well as in the distribution and commercialisation of streaming devices.

Merger control

COFECE has also analysed merger control cases involving digital markets (even if the mergers are not between two platforms). One of the first transactions in which COFECE had the opportunity to analyse digital platforms was the proposed concentration involving Cornershop and Walmart, where COFECE ultimately blocked the deal, considering that it ‘could generate incentives to unduly displace or impede the access of other competitors to the Cornershop platform and/or hinder the development of new platforms’.[9]

Another important merger analysed by COFECE in 2020 was the acquisition by of Best Day (both online travel agencies). This case involved the first in-depth review of a transaction between relevant online travel agencies in Mexico, which required COFECE to analyse markets that had not been previously subject to a detailed assessment and to analyse the interrelation between the relevant players in both channels (online and offline). After a seven-month in-depth review, COFECE ultimately cleared the transaction without imposing any remedies.

As a consequence of the investigations and merger control cases mentioned in this chapter, in 2020, COFECE created the General Direction of Digital Markets to advance analysis of the digitalisation of the Mexican economy and to exercise its authority more effectively. According to COFECE, ‘This new unit is part of COFECE’s Digital Strategy, a document that defines the actions to be implemented by COFECE to successfully address its analysis and research in digital markets.’[10]

COFECE has also published studies such as the COFECE Digital Strategy,[11] where it has expressed its position, work and concerns in digital markets.

The IFT has also undertaken several efforts to address and analyse the digital economy and digital markets. In addition to its ongoing analysis of the parties’ OTT platforms in Discovery/WarnerMedia, it has published different studies relating to the digital economy, including the Performance of Market Indicators and the Digital Economy[12] and the Challenges of Competition in the Digital Economy.[13] It has also organised roundtables inviting panellists and experts in the field to discuss the impact that those markets have had on the telecommunications and broadcasting sectors.


The Mexican Antitrust Authorities have made significant efforts in recent years in relation to digital markets. One of the biggest challenges for the Mexican Antitrust Authorities has been adapting to the new way of analysing mergers relating to digital markets and learning to analyse:

  • the possible indirect network effects;
  • economies of scale;
  • multi-homing and its effects on competition in terms of users using multiple platforms simultaneously to analyse the best choices;
  • the impact of big data;
  • the relationship between the different sides of a platform; and
  • the relevance of market shares in rapidly changing markets, among other particular characteristics of those markets.

Likewise, the Mexican Antitrust Authorities should try to be as expeditious as possible when analysing and resolving transactions involving digital markets, since they usually involve new economic agents – in many cases, creators of a new market. It is also important to emphasise that lengthy antitrust analysis discourages, on the one hand, innovation and, on the other hand, the investment of private equity funds in those new projects, which, in many instances, are essential for the development of an emerging business.

The Mexican Antitrust Authorities must take into account the dynamism of digital markets, in which conditions can change abruptly, and take into account the fact that blocking transactions involving nascent markets through direct application of traditional tools can slow innovation and investment and negatively affect the growth and expansion of new products and services that result from the combination of business models, strategies and technologies, which, in many instances, increase competition and benefit consumers.

The Mexican Antitrust Authorities must continue to try to understand the digital economy and its markets and perform the best possible analysis in the shortest possible time; however, at present, we believe that, despite having provided precedents regarding which authority is the competent authority in digital markets, companies will continue to face uncertainty on jurisdictional issues in Mexico, which may cause delays when cases go to court. The Mexican Antitrust Authorities should devote their best efforts to reaching agreements before going to court to avoid unnecessary delays, and the circuit courts should bear in mind that monthly delays to decide jurisdiction may end up killing a deal and increasing transaction costs unnecessarily; such bureaucratic issues weaken Mexico’s position as an attractive market for innovation.

As in other jurisdictions, the Mexican Antitrust Authorities will continue to face different challenges relating to the digital economy and its markets, and will have to adapt to the dualism of adapting traditional markets and these new digital markets. The tools they develop and the criteria they define will shape the competitive landscape in digital markets for years to come and will either foster competition and innovation or become barriers for the expansion and development of businesses.


1 Carlos Mena Labarthe and Jorge Kargl Pavía are partners and Aleine Obregón Natera is a senior associate at Creel, García-Cuéllar, Aiza y Enríquez, SC.

2 ‘Small but significant non-transitory increase in price’.

3 First Collegiate Court in Administrative Matters, specialised in Economic Competition, Broadcasting and Telecommunications. CCA 4/2019.

4 Federal Economic Competition Commission (COFECE), ‘COFECE probes the market of e-commerce platform services in Mexico’, File No. IO-002-2017, 1 February 2018: According to COFECE, this was the first time an investigation into digital markets was opened in Mexico.

5 COFECE, ‘COFECE investigates possible barriers to competition and/or essential inputs in card payment systems’, File No. IEBC-005-2018, 26 October 2018:

6 COFECE, ‘COFECE initiates market study in retail food and beverage sector’, File No. REC-001-2019, 20 May 2019:

7 COFECE, ‘Cofece investigates possible barriers to competition and essential inputs in retail e-commerce market’, File No. IEBC-001-2022, March 2022:

8 COFECE, ‘Cofece investigates the existence of illegal practices in the market for digital goods and/or services’, File No. DE-023-2022, 3 July 2023:

10 COFECE, ‘15 Acciones Relevantes 2020’:

12 Federal Telecommunications Institute (IFT), ‘Comportamiento de los Indicadores de Mercado y ls Economía Digital 2020’:

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