Constitutional reform on organizational simplification: current status and amparo proceedings

Mexico City

March 11, 2025

The recent reform concerning the elimination of autonomous agencies originates from the bill for a constitutional amendment submitted by former President Andrés Manuel López Obrador on February 5, 2024.  The proposal sought to amend various articles of the Political Constitution of the United Mexican States to implement what was referred to as “organizational simplification”.

Congressional Approval and Dissolution of Autonomous Agencies

On August 23, 2024, the Constitutional Affairs Committee of the Chamber of Deputies approved, in general terms, the bill promoted by the National Regeneration Movement party (by its Spanish acronym, “MORENA”), aimed at “organizational simplification.”  This bill proposed the dissolution of seven (7) autonomous agencies and regulatory entities, as follows:

1.         Federal Economic Competition Commission (by its Spanish acronym, “COFECE”).

2.         Federal Telecommunications Institute (by its Spanish acronym, “IFT”).

3.         National Council for the Evaluation of Social Development Policy (by its Spanish acronym, “CONEVAL”).

4.         National Institute for Transparency, Access to Information, and Personal Data Protection (by its Spanish acronym, “INAI”).

5.         National Hydrocarbons Commission (by its Spanish acronym, “CNH”).

6.         Energy Regulatory Commission (by its Spanish acronym, “CRE”).

7.         National System for the Continuous Improvement of Education (by its Spanish acronym, “MEJOREDU”).

The Committee’s vote resulted in 22 votes in favor and 17 against.

Ratification and Publication of the Reform

Following its approval in Congress, the bill was forwarded to state legislatures for validation.  A minimum of 17 local congresses was required to ratify the constitutional reform.  By December 9, 2024, 20 state congresses had approved the bill, surpassing the required threshold.

Finally, on December 20, 2024, the Decree enacting the reform was published in the Official Gazette of the Federation (by its Spanish acronym, “DOF”), introducing amendments, additions, and repeals to various provisions of the Constitution concerning organizational simplification (the “Reform”).  The Reform amended Articles 3, 6, 26, 27, 28, 41, 76, 78, 89, 105, 113, 116, 123, and 134 of the Federal Constitution, eliminating the seven (7) autonomous agencies mentioned above and reallocating their functions to federal public administration entities as follows:

1.         CRE and CNH functions were transferred to the Secretariat of Economy.

2.         COFECE and IFT functions were assigned to a new antitrust authority.

3.         CONEVAL responsibilities were integrated into the National Institute of Statistics and Geography (by its Spanish acronym, “INEGI”).

4.         MEJOREDU functions were assumed by the Secretariat of Public Education.

5.         INAI responsibilities were transferred to the newly created Secretariat of Anti-Corruption and Good Governance.

Implementation Timeline and Key Deadlines

The Reform took effect on December 21, 2024, granting Congress 90 calendar days to enact the necessary amendments to secondary laws.  Regarding changes in economic competition and telecommunications, the Tenth Transitory Article of the Reform establishes that these modifications will take effect within 180 days after the issuance of secondary legislation.

Accordingly, the following implementation deadlines were set:

1.         Congress was granted 90 days to amend laws necessary for the implementation of the Reform, except for economic competition and telecommunications, where no specific deadline was established for the enactment of secondary laws.

2.         Until the legislative reforms come into effect, INAI, state transparency agencies, CNH, and CRE would continue to operate under the current framework.

3.         Commissioners of CRE, CNH, and INAI will conclude their functions upon the entry into force of secondary legislation in their respective areas.

4.         COFECE and IFT will be dissolved, and their commissioners will conclude their functions upon the entry into force of legislative amendments in economic competition and telecommunications.

Amparo Proceedings and Constitutional Changes

It is worth noting that prior to the enactment and entry into force of the Reform, Article 28 of the Constitution contained specific provisions concerning amparo proceedings in economic competition and telecommunications matters.  Notably, under the former Section VII of Article 28, the following rules applied:

1.         General regulations, acts, and omissions issued by COFECE and/or IFT could only be challenged through an indirect amparo proceeding.

2.         Suspension of acts challenged against COFECE and/or IFT was generally not allowed, except in cases involving fines, divestitures of assets, rights, equity interests, or shares, which could only be executed after the amparo proceeding was resolved.

3.         Only resolutions issued within a formal adjudicatory process that concluded such a proceeding could be challenged on grounds of violations occurring either in the final resolution or during the procedure itself.

4.         General regulations applied during adjudicatory proceedings could only be challenged in an indirect amparo filed against the final resolution.

5.         Amparo proceedings in these matters were to be heard by specialized judges and courts.

With the entry into force of the Reform, Article 28 was modified in both content and structure.  However, regarding amparo proceedings in economic competition and telecommunications matters, the twenty-first (21st) and twenty-second (22nd) paragraphs of Article 28 essentially maintain the wording and essence of the former Section VII, with the only substantive change being its adaptation to the elimination of COFECE and IFT.  Consequently:

1.         The Executive Branch will issue general provisions to regulate telecommunications, broadcasting, and economic competition, aligning the constitutional text with the dissolution of COFECE and IFT.

2.         As a result, general regulations and acts issued in these areas by the Executive Branch may only be challenged through indirect amparo proceedings, following the same rules previously applicable to acts of COFECE and/or IFT.

Transition Measures and Legislative Developments

Regarding the transition and dissolution of COFECE, on February 18, 2025, the Official Gazette of the Federation published an agreement issuing the “Austerity Guidelines for the Management of the Federal Economic Competition Commission”.  This agreement established administrative measures to optimize allocated resources and ensure compliance with its constitutional mandate during the transition and dissolution process.

On March 5, 2025, the Senate of the Republic approved, in general terms, the bill harmonizing secondary legislation governing transparency, access to public information, and personal data protection.  The bill proposes transferring INAI’s functions to the newly created Secretariat of Anti-Corruption and Good Governance; however, the initiative must still be submitted to the Chamber of Deputies and continue through the legislative process.

Lastly, regarding the remaining autonomous constitutional bodies set to be dissolved (excluding COFECE and IFT), the 90-day transition period following the entry into force of the Reform will conclude on March 21, 2025.  By this deadline, Congress should have finalized all necessary amendments to secondary legislation, ensuring the full dissolution of the affected autonomous agencies.

Controversies and Future Implications

Although the organizational simplification Reform was introduced with the objective of reducing social inequality and optimizing public resources, various organizations and experts have raised concerns.  Critics argue that the elimination of these autonomous agencies may weaken the rule of law by centralizing excessive power in the federal government, potentially impacting areas such as privacy, transparency, telecommunications, hydrocarbon exploration and extraction, and national education policy evaluation.

In this context, President Claudia Sheinbaum Pardo will be responsible for issuing decrees to dissolve autonomous agencies, ensuring that material resources, records, databases, platforms, and electronic systems of the eliminated agencies are properly integrated into the corresponding centralized government entities or INEGI, as applicable.