Competition Is Changing: What Every Business Needs to Know

Imagine if a small furniture manufacturer in Jalisco finally does something it had never dared before, file a complaint for abuse of dominance. 

Imagine, such a company that may have struggled for years to compete against a duopoly that controlled the distribution of imported wood, and whenever it tried to switch suppliers or negotiate better terms, the doors slammed shut Now, with the new regulatory framework, it has a new opportunity to level the playing field. 

This story reflects the reality of countless Mexican companies, small and medium-sized enterprises, fighting to stay afloat under the weight of powerful corporations and multinationals. The difference today is that the law has changed. Businesses now have stronger tools to make markets fairer and hold dominant players accountable.
 

Why Competition Matters?

Why does this matter? Because competition is what keeps markets alive. In every industry, it’s the oxygen that fuels lower prices, better products, and real innovation. When companies are forced to earn customer loyalty, rather than secure it through unfair control, everybody wins. Consumers pay less, businesses improve faster, and economies grow stronger.

According to COFECE, fair competition can reduce consumer prices by up to 30%. It also drives investment and keeps supply chains efficient. But when monopolies or oligopolies dominate, small businesses are the first casualties. Just like the furniture maker in Jalisco, many are left without a path to grow or even survive. That’s why the new reform matters, not just for lawyers or regulators, but for business owners, managers, and entrepreneurs trying to build something real.

The New Federal Law on Economic Competition

On July 1, 2025, the Mexican Congress approved a sweeping reform to the Ley Federal de Competencia Económica (LFCE – Federal Law on Economic Competition), replacing the now-defunct COFECE with a new authority, the Comisión Nacional Antimonopolio (CAN – National Commission Against Monopolies), and redefining the antitrust landscape for everyone doing business in Mexico. 

At the heart of the reform is the creation of CNA. Unlike its predecessor, COFECE, the CNA will operate directly under the Ministry of Economy. It will be led by five commissioners selected by the president and ratified by the Senate. Its design is more centralized, its mandate broader, and its tools sharper.

But perhaps the biggest innovation lies in what the CNA will do differently. It now oversees competition in telecom and broadcasting, a space previously regulated by the IFT. This consolidation removes years of jurisdictional confusion. For companies, that means clearer rules, faster procedures, and one authority to deal with instead of two or more. Think of it as replacing a maze with a straight line. And that line now runs directly through the CNA.

So what are the new rules? For starters, the reform expands the definitions of what counts as anti-competitive conduct. Price-fixing or bid-rigging with ”potential” competitors? Now punishable. Exclusivity deals that reduce a rival’s ability to compete? Now under fire. Even information exchanges among companies, once a gray area, can trigger more serious investigations. The law has been sharpened to catch more subtle forms of abuse, particularly those hidden in plain sight.

And the consequences are no longer symbolic. Companies caught in absolute monopolistic practices now face fines of up to 15% of their income (up from 10%). Relative practices can draw penalties of 10%. Obstructing investigations, refusing to cooperate, or giving false information can cost a business more. 

What’s more, companies can no longer hide behind complexity. The CNA now works on tighter timelines. Investigations must wrap up in a year. Merger decisions? Thirty business days. And with lower thresholds, even more M&A deals must be reported, including foreign-to-foreign transactions with Mexican sales or effects. The message is clear: the days of under-the-radar market power may be over.

This is where the story comes full circle for businesses. The law empowers challengers. Small and medium-sized enterprises now have a path to file complaints, trigger investigations, and open markets that may have actual results in a shorter term. 

At the same time, larger businesses should view this as a strategic shift. If you’re bidding for public tenders, coordinating with partners, or acquiring competitors, your compliance program isn’t just a formality, it’s a lifeline. The CNA will issue  compliance certifications valid for three years. And those who have them can see their penalties reduced in the event of an infraction. It’s a win-win: build trust with the market, and protect your downside.

What does this all mean for Mexico’s economy? It means that competition law is no longer in the margins, it’s center stage. In fact, the reform links antitrust with industrial policy. The Ministry of Economy can now issue national interest statements to fast-track key investigations. Hydrocarbon markets are exempt from review, and the law reflects a political will to support energy sovereignty and state-owned strategies while keeping markets fair elsewhere.

In sum, Mexico’s new antitrust law isn’t just a legal reform. It’s a practical toolkit for businesses navigating the country’s economy. Whether you’re trying to enter a market, defend your space, or grow responsibly, the law now gives you the tools to do so. The rules are clearer, the authority stronger, and the risks higher. But so are the opportunities.