Censorship, and Retreat: Sheinbaum’s Troubled Telecom Gamble
In a move that might have gone largely unnoticed if not for at least one miscalculation, Claudia Sheinbaum unveiled her new telecommunications and broadcasting law—a crucial sector for Mexico’s economy and its ambitions in nearshoring. With over 121 million active broadband subscriptions, Mexico stands as one of the largest telecommunications markets in Latin America and the world.
During Q4 2024, the mobile telecom sector grew by a modest 1.2%, generating $92,076 million pesos in revenue. Against this somewhat lackluster landscape, one might think regulatory prudence to attract private sector investment would be in order. Instead, Sheinbaum opted to quietly push her law through—surely hoping attention would be elsewhere as headlines swirled around bigger political dramas.
Sheinbaum’s legislative ambitions have hit a couple of notable speed bumps in recent days. First came the quiet retreat on the controversial ISSSTE reform, and now the backpedaling on the telecommunications overhaul. In both cases, the strategy seemed clear: push hard, push fast, and get the initiatives across the finish line before any meaningful opposition arises. But public scrutiny and political friction proved too much, forcing the incoming president to slam the brakes—at least temporarily.
Unfortunately for her, the media did notice—but focused almost exclusively on the most controversial element: the introduction of digital platform censorship in Article 109, that grants the newly formed Agency for Digital Transformation and Telecommunications (ATDT) the power to block digital platforms. Even more concerning, it’s the agency itself that will draft the rules governing how and when these platforms can be blocked. In other words, the referee not only plays in the match—it also writes the rulebook. It’s a recipe for discretionary enforcement that could easily morph into outright censorship, all under the bureaucratic guise of regulatory compliance, and without any meaningful oversight from the judiciary.
Relevant as this might be, it overshadowed other, similarly worrying parts of the proposal, such as the government’s new ability to revoke private concessions with little notice and the steep increase in fines for operators. In other words, while the debate around free speech understandably took the spotlight, the administration quietly laid the groundwork for far broader government control over a sector vital to economic modernization and competitiveness.
The proposed reform has sparked legal alarms, with experts and organizations warning that the initiative might be not only unconstitutional but also a violation of Mexico’s international commitments, particularly under the USMCA. Central to the concern is the outsized empowerment of the ATDT, a regulatory body cobbled together with broad operational, regulatory, and even executive powers.
Haste proved, once again, to be a poor advisor. Although the Telecommunications Law had been under development for months, sources close to the process indicate that rising tensions with Donald Trump — including a tense call between Sheinbaum and Trump on April 16 and a controversial TV ad featuring US Homeland Security Secretary Kristi Noem — led Palacio Nacional to rush its presentation, with officials hastily tucking a crackdown on foreign propaganda into a not-quite-ready Telecom Law that had originally been scheduled for debate in the next legislative session.
Adán Augusto López Hernández, Morena’s majority leader in the Senate, announced that open forums will be held to discuss the law, with invitations extended to all interested parties and organizations. A work plan will be presented, aiming to begin the discussions next Wednesday, with involvement from the Federal Executive. López indicated that the review process will take as long as necessary, effectively ruling out the bill’s approval during the current legislative session.
Nonetheless, many will take solace from the telecom legislation U-turn, arguing that checks and balances in Mexico (from public opinion, not Congress) are in fact working. In the end, the proposed legislation has been put on hold, and no doubt revisions will remove some of the most threatening aspects.
A New Commission, Same Old Tricks: Sheinbaum’s Plan to Tame the Market
The Senate also received an initiative from President Sheinbaum proposing sweeping reforms to the Federal Economic Competition Law and the Federal Law of Parastatal Entities. The headline promises are bold: stronger enforcement against monopolies, heavier sanctions, and a new National Antitrust Commission appointed by the Executive and ratified by the Senate. In theory, it’s about protecting consumers; in practice, the list of red flags is hard to ignore.
The proposal strengthens investigative powers and raises penalties, but also sharply reduces the benefits of immunity and settlement programs. More troubling, it dismantles the safeguards that once protected the competition authority’s independence. It eliminates its power to issue opinions on regulations unless explicitly requested by the Executive and leaves a conveniently vague loophole to potentially exempt state-owned enterprises from competition rules.
Moreover, the reform replaces COFECE with a new National Competition Authority (CNA) sectorized under the Ministry of Economy. The CNA would also find it easier to pursue collective damages but at the expense of transparency for those under investigation. In short, while the rhetoric is all about protecting the economy from monopolies, the real story seems to be about saving the Executive from independent oversight.
From Newsroom to War Room: Televisa-Zaldívar Nexus Alleged
An explosive investigation reveals that Televisa allegedly operated a “shadow” communications unit, charmingly nicknamed “Palomar,” specializing in fake news, smear campaigns, and propaganda — not against foreign powers or criminal organizations, but against journalists, rival businessmen, and political adversaries.
The real star of the show? Former Supreme Court Chief Justice Arturo Zaldívar, who, according to Aristegui Noticias, benefited from Palomar’s work while resources from the judiciary were quietly funneled into the operation, including the salaries of some Supreme Court officials who allegedly reported to Televisa’s own headquarters. In return for these public relations “services,” hefty government contracts rained down on firms like Metrics to Index.
Zaldívar and executives from Televisa have denied the allegations, describing them as fake news and fabrications from a disgruntled former freelance worker “with diagnosed psychiatric issues”. Nonetheless, the allegations dent Televisa’s credibility, which had been improving fast thanks to excellent impartial news coverage of N+.
Water Diplomacy 101: Mexico and the U.S. Patch Things Up
Mexico and the United States have announced a bilateral agreement regarding water allocations from the Rio Grande (Río Bravo) under the 1944 Water Treaty. With the current five-year water delivery cycle set to end on October 24, 2025, both governments have agreed to a series of measures aimed at mitigating potential shortfalls in Mexico’s water deliveries. The agreement deactivates a highly controversial dispute, which President Trump said could have led to further tariffs and other measures.
Mexico has committed to immediate and seasonal water transfers during the upcoming rainy season to meet its obligations, while prioritizing the protection of water supplies for human consumption in northern border communities. The actions were outlined during technical meetings involving authorities from both nations and will be formalized through the International Boundary and Water Commission (IBWC).
The Mexican section of the IBWC, alongside CONAGUA, will oversee the implementation of these actions and monitor watershed conditions. Their efforts aim to establish a forward-looking plan to ensure Mexico’s compliance for both the current and future cycles of the Treaty, including an annual high-level consultation mechanism.
Contact:
Laura Camacho
Executive Director Miranda Public Affairs
laura.camacho@miranda-partners.com
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