Mexico: Tycoon Carlos Slim may have found legal loophole

Telco tycoon Carlos Slim, who heads Mexico’s wireless giant America Movil, is accused of circumventing the nation’s competition law to benefit his fixed-line monopoly, say reports.

Local financial reports say that Slim developed a new method for fixed-line monopoly Telmex, an America Movil subsidiary, to divest assets as a way to find a loophole of Mexico’s new competition legislation. The Federal Communications Institute is set to declare America Movil and cable giant Televisa dominant next March.

According to reports, a civil judge had ordered Telmex to halt all divestitures last January at the request of rival Bestphone, which expressed concern that the Telmex divestitures were part of a plan to avoid telco reform including the required interconnection between phone companies. Under the reforms Telmex would be required to share its network with rival operators. The divestitures are reportedly a way to not longer have those sold assets be considered a part of America Movil, therefore forced out of the required regulations.

No charges or formal complaints have been brought against Slim or America Movil regarding the alleged plans.

Full Content: Forbes

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