A PYMNTS Company

Mexico: America Movil fights back at new dominant label

By  |  April 6, 2014
Mexico: America Movil fights back at new dominant label

New legislation that gave power to Mexican authorities to label a company dominant in its market, allowing regulators to scrutinize the firm, is being challenged by communications giant America Movil, which was declared as a “preponderant economic agent” by antitrust authorities.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Reports say America Movil plans to file an injunction against the ruling, which also declared broadcasting conglomerate Grupo Televisa dominant in its market.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    Mexico’s newly-formed telco watchdog, the IFT, reached its conclusions by considering the companies’ subsidiaries as a single entity. America Movil’s wire line division controls about 80 percent of the industry, whereas its wireless operations controls about 70 percent.

    Now, America Movil is arguing that each subsidiary is separate from the parent company.

    The new rules allow the IFT to restrict market ownership to 50 percent. Now that it has declared America Movil as dominant, the regulator can bar the company from charging roaming fees, require it to share telco infrastructure with rivals, and other concessions.

    Full Content: Zacks

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.