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Possible reforms related to streaming services

On September 12, 2019, Senator Ricardo Monreal Ávila, a member of the MORENA parliamentary group, filed before the Senate an initiative to reform the Law on Value Added Tax and the Federal Telecommunications and Broadcasting Law.

Regarding the Law on Value Added Tax, the initiative aims to tax users of streaming platforms with Value Added Tax.

Regarding the Federal Telecommunications Law, the initiative has two purposes: i) include as a requirement for the provision of restricted television and audio services over the Internet, from the national territory or from abroad, authorization by of the Federal Telecommunications Institute; and ii) that the streaming services guarantee that at least 30% of its catalog is made up of national production.

On March 18th, 2020, the initiative was approved by the Senate Finance and Public Credit and Legislative Studies commissions, and yesterday was listed for approval in plenary of the Senate. However, the Senators decided not to vote the initiative during this session, so it will be passed for discussion and approval in September, with the beginning of a new ordinary period of sessions.

We will continue to monitor the progress of this initiative and we will keep you informed. At Acedo Santamarina we have a consolidated telecommunications practice, and we are ready to provide our clients with solutions adapted to their needs.

Lawyer Andrea Fernanda Olaya

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