In last weeks, several resolutions issued by the Plenary of the Supreme Court of Justice of the Nation (“SCJN”) have been published in the Federal Official Gazette in connection with Constitutional Controversies brought against local regulations enacted by various municipalities in the state of Coahuila de Zaragoza. In all cases, the SCJN held that municipal authorities may not collect consideration in exchange for the exercise of a right granted to citizens in a field whose regulation and oversight fall exclusively within the jurisdiction of the Federal Congress and the Federal Telecommunications Institute (“IFT”).
Although several municipal governments argued that such fees were limited to authorizations for land use and rights of way – claiming that telecommunications companies make use of public spaces to carry out profit-generating activities within municipal territory – the SCJN concluded that such actions are unconstitutional. This is based on the fact that the IFT is the sole authority empowered to establish policies and regulate the telecommunications and broadcasting sectors. Therefore, the imposition of fees by municipalities for activities whose exploitation and regulation fall exclusively within federal jurisdiction, constitutes an infringement upon the powers of the Federal Congress and the IFT.
The SCJN’s resolutions comes at a time of uncertainty for the telecommunications and broadcasting sector, amid the approved Judicial Reform
and the extinction of the IFT as an autonomous body resulting from the Reform on Organizational Simplification, as well as the expected enactment of a new legal framework ruling the sector. In this context, SCJN’s decisions stands as a significant precedent in protecting telecommunications and broadcasting companies against overregulation through unlawful charges imposed by local authorities.
These resolutions provides legal certainty to companies in the sector by clearly defining the competent authorities and applicable payments related to the deployment and investment in telecommunications and broadcasting infrastructure. It also underscores the illegality of allowing matters under federal jurisdiction to be regulated at the local level, which could otherwise result in substantial compliance discrepancies and administrative burdens.
At Acedo Santamarina, S.C., we remain at your disposal to provide legal advice and address any questions you may have regarding the SCJN’s resolutions and compliance with the applicable regulatory framework in the telecommunications and broadcasting sectors.
