A Mexican court issued a definitive suspension Friday against the new electricity law that aims to strengthen the state-run company, Comision Federal de Electricidad (CFE).

The law is supported by President Andrés Manuel López Obrador, who wants to increase state control of the energy market. López Obrador claimed that under the previous administration, the electricity market was skewed in favor of private operators.

Bimbo and Walmart Inc. filed legal challenges against the law, and two unnamed companies requested the freeze of the law. The US Chamber of Commerce expressed concern that the new law violates the US-Mexico-Canada Agreement (USMCA) and may create a monopoly in the electricity sector.

The injunction will be in place until the case is decided on its merits. The judge asserted that the injunction was necessary “to prevent economic damage to the electricity sector, to ensure competition, and to protect the environment.”

López Obrador called for the Supreme Court to resolve the issue. He stated “if it’s declared unconstitutional then the interest of private businesses win out. If the judges don’t act with justice, they must be denied the right to speak.”

If appealed to the Supreme Court, 11 judges must vote against the law to rule it unconstitutional.

This article was translated from English into Spanish by JURIST Editor Daniela Comesanas Carmona. To view the translated article in Spanish click here.

Este artículo fue traducido de Inglés a Español por la editora de JURIST Daniela Comesanas Carmona. Para ver el artículo traducido en Español, da click aquí.