February 14, 2017
The Value of Checks and Balances: “Non“ Dominance in Restricted TV and Audio in Mexico – Francisco E. Castillo & Elisa V. Mariscal (Global Economics Group)
One of the characteristics of a democratic country is the existence of checks and balances between its different branches of power. This peculiarity is useful, since the actions of the various arms of government are sometimes imperfect – due to institutional limitations, cognitive disagreements about the “state of the world”, or failures of political representation that affect the pursuit for the best possible results for the majority of citizens, among others. Thus, the government’s actions must be constructed among several institutions in order for each to compensate for the weaknesses in the others, while their redundancy allows for a decision to be maintained under joint control. Judicial review of administrative actions is a clear example of the above.
Framed against this background we find the approval by the legislative branch of a constitutional reform on the subject of economic competition and telecommunications, from which derived the Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión, LFTR), which granted authorities broad powers to limit excess of market power in the Restricted Television and Audio Services (Servicio de Televisión y Audio Restringido, STAR) markets. The reform created a technically independent organism, with
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