SUPREME COURT DECLARES KEY PROVISIONS OF BROADCAST LAW UNCONSTITUTIONAL.

In a landmark ruling, Mexico's high court (Suprema Corte de Justicia de la Nacion, SCJN) voted to strike down several important provisions of the controversial broadcast law (Ley Federal de Radio y Television, LEFERYT), approved by Congress in April 2006. The decision does not invalidate the law, but opens the door for Congress to make necessary revisions to ensure that LEFERYT is in compliance with the Mexican Constitution. The decision comes only a few weeks after the SCJN agreed to review complaints about the LEFERYT from nongovernmental organizations and former members of Congress (see SourceMex, 2007-05-16).

One of the SCJN's most important decisions was to reject a provision in the LEFERYT that would have granted current holders of concessions almost exclusive rights to digital broadcasts. The government is in the process of converting the old analog system to a digital spectrum. Many critics said the law, as written, would have allowed the two major television networks, Televisa and TV Azteca, to continue their dominance of the air waves, effectively shutting out any competition (see SourceMex, 2006-04-05).

The court took other important steps to ensure competition, such as rejecting a provision that made license renewal automatic and grandfathered rights and terms of previous concessions regardless of how laws changed. The court also ruled that bidders that want to participate in radio and television spectrum auctions must first receive a favorable ruling from the government's antimonopoly agency, the Comision Federal de Competencia (CFC).

Finally, the court rejected a provision in the law that would have granted new television concessions to the highest bidder.

Decision linked in part to 2002 indigenous-rights law

Justices said a major consideration in their ruling was the lack of provisions to encourage and facilitate developing broadcast operations in indigenous communities. This, they said, was a major violation of the indigenous rights law, which Congress approved in 2001 (see SourceMex, 2001-05-01, 2001-07-18, and 2002-09-18). "Let us make it clearly evident that the legislature has been in violation of the Mexican Constitution for six years," said Justice Genaro David Gongora Pimentel.

Despite the court's ruling, the decision is merely interpretive and does not invalidate the 2006 law. Justice Margarita Luna Ramos said the court merely intended to ensure that parties that were harmed by the first law have their rights protected.