Mexico City, December 12, 2024 – 6:32 PM
The Mexican Senate unanimously approved, with 113 votes in favor, a reform targeting digital platforms to provide social security protection to workers. In detail, 79 votes came from Morena and allied parties, opposing 30. The new rules focus on protecting workers who perform physical tasks like deliveries, shopping, or micro-tasks.
Senator Geovanna Bañuelos of the Labor and Social Security Commission argues that this reform ends precarious labor conditions for workers in digital platforms. She also mentions that platforms claimed to merely connect consumers and service providers, preventing any employment relationship, similar to previously addressed outsourcing issues.
Senator Simey Olvera, head of the First Legislative Studies Commission, ensures that this reform prevents exploitation of workers on platforms. It aims to harmonize basic benefits and security measures for these workers.
Opposing the reform, PAN senator Jesús Martín del Campo asserts that although the reform is good, it limits employee’s freedom to choose their employment model.
Key aspects of the reform:
- It introduces new rules for digital platforms in the Federal Labor Law.
- Workers present for service delivery (like deliveries, shopping) get social security if their income exceeds one minimum wage in Mexico City. Those earning less have accident coverage during their tasks.
- 658,000 workers are employed through digital platforms, with 272,000 earning above the monthly minimum wage (SAT data).
113-0 vote confirms the reform – Senate of Mexico (@senadomexicano), December 13, 2024
Title: Senate Approves Reform Targeting Digital Platforms – Grupo Milenio
English Translation and Adaptation of Original Article:
Citing the need to regulate and modernize the digital landscape, the Mexican Senate has approved a reform to the Law on Economic Competition that specifically targets digital platforms operating in the country. This revision, spearheaded by Senator Ricardo Monreal, seeks to level the playing field for smaller competitors and safeguard consumer rights in the online marketplace.
The approved reform, discussed in the context of the 2021 Economic Package, aims to prevent digital platforms from abusing their market dominance to stifle competition or engage in discriminatory practices. Notable aspects of the reform include:
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Definition of Digital Platforms: The reform defines digital platforms as intermediaries that facilitate interactions between users, suppliers, and consumers, with an emphasis on online marketplaces, digital stores, and apps. This includes tech giants like Amazon, Uber, and Airbnb.
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Self-Regulation Principles: The bill mandates that digital platforms adhere to self-regulation principles to prevent abuses. These principles include non-discrimination, transparency, and a commitment to protect user data.
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Supervisory Body: A new federal agency will be created to oversee the implementation and enforcement of these regulations. This body will be responsible for monitoring digital platforms’ compliance with the law and imposing fines for violations.
- Private Action: The reform also grants consumers and competitive businesses the right to file private lawsuits against digital platforms that violate market competition rules. This provision aims to empower smaller entities to hold dominant players accountable.
Quote: According to Senator Monreal, "This reform is an essential step towards a fairer digital ecosystem. We want to promote innovation while protecting consumers and fostering healthy competition."
The reformed bill will now move to the Chamber of Deputies for its consideration. If approved, President Andrés Manuel López Obrador will have the final say on whether the reform becomes law. This development is a testament to the global trend of regulatory scrutiny and intervention in the digital economy, with Mexico joining the likes of the European Union, the United States, and India in revising its competition laws to address the unique challenges posed by digital platforms.
Source: Grupo Milenio, original article [in Spanish]: "Senado aprueba reforma a plataformas digitales" (https://www.milenio.com/politica/senado-aprueba-reforma-plataformas-digitales)
