Cofece

The Comisión Federal de Competencia Económica (COFECE) is Mexico's autonomous antitrust authority responsible for supervising, promoting, and guaranteeing competition and free market access across all economic sectors except telecommunications and broadcasting. Created in June 2013 through a constitutional reform of Article 28, COFECE replaced the previous Federal Competition Commission to strengthen Mexico's competition enforcement framework. The agency operates as a constitutionally autonomous body with technical and economic independence, governed by a Board of Commissioners consisting of seven members appointed by the President of Mexico to ten-year terms. COFECE's mandate includes investigating and sanctioning monopolistic practices, reviewing mergers and acquisitions, eliminating barriers to competition, regulating access to essential facilities, and issuing recommendations to government authorities to remove regulatory obstacles. While not a direct financial sector regulator, COFECE plays a significant role in shaping Mexico's fintech landscape through competition advocacy and market studies. The agency conducted comprehensive research on digital financial services markets in 2022, examining competition conditions affecting electronic payment institutions, crowdfunding platforms, and other fintech entities regulated under the Law to Regulate Financial Technology Institutions. In October 2024, COFECE issued 21 recommendations to improve competition in the fintech sector, addressing barriers such as minimum capital requirements, information transparency, regulatory disparities between traditional banks and fintech institutions, and the need for open access to payment infrastructure. The agency has investigated payment services markets, identified concentration issues, and proposed measures to promote financial inclusion and reduce switching costs for consumers. COFECE also provided input during the drafting of Mexico's pioneering Fintech Law in 2017, emphasizing the importance of competition for fostering innovation and financial inclusion. As of 2025, COFECE faces institutional changes following constitutional reforms that may affect its structure and powers, with secondary legislation pending to define the future competition authority framework.