On December 31, 2018 a Decree issuing the Law of Digital Operation and Innovation for Mexico City (“the Law”) was published in the official gazette.

The Law creates the Agency for Public Digital Innovation of Mexico City, to design and coordinate public policy for this city in the field of data management, technological and connectivity control, among others. For this purpose, the Agency will create and implement technological solutions and establish laboratories for innovation. Within the range of activities pertaining to the Agency, is included working with third parties for the purchase, operation, sale, exchange or rental of telecommunication network capacity and communications infrastructure with the goal of providing network access to all public buildings and facilities of the government of Mexico City as well as in schools, libraries, public transport and other public spaces.

The Law also seeks regulatory simplifications to make Mexico City more competitive, including the establishment of digital identification means and platforms for public services. Moreover, the Law aims to increase transparency on public spending and government contracts, through the creation of a publicly accessible system for monitoring them and the implementation of better tools for detecting potential conflicts of interest in government contract proceedings.

In addition, the Law provides new rules for the management and use of data obtained and generated by the local government of Mexico City whose implementation and supervision will be in charge of the Agency pursuant to the public policy prepared for such a purpose.

With this important legislation, it is expected that the government of Mexico City will be able to better control public spending, provide more transparency on public contracts, reduce corruption and offer better opportunities for potential investors.