After a lengthy investigative process, Mexico's telecommunications regulator Instituto Federal de Telecomunicaciones (IFT) has fined America Movil's subsidiary Telcel MXN1.78 billion (US$93.3 million) for alleged monopolistic practices.
It seems that Telcel is being punished for striking exclusivity deals with convenience store chain Oxxo to sell its SIM cards.
According to Reuters, the IFT explained that the alleged monopolistic practice involved Telcel granting incentives to Oxxo and Impulsora de Mercados de México (IMMEX), described as a food and beverage services company, on the condition that they would not sell SIM cards from competitors.
It’s safe to say that Oxxo is a big player in its market. It is in fact the largest chain of convenience stores in Latin America, with an estimated 22,000 stores in Mexico (its home country) and almost 1,000 between Brazil, Colombia, Chile, and Peru, as well as a growing presence in Canada and the United States.
America Movil, a telecommunications giant with an international presence, mainly in a number of markets across the Latin American region, has denied the regulator's findings and pledged to challenge the investigation and fine.
The fine follows an investigation launched in 2021 by the IFT at the request of a competitor over the alleged monopolistic practices by Telcel.
The IFT also levied fined Oxxo, and IMMEX MXN19.5 million (about US$1.02 million). Both are described as subsidiaries of a multinational beverage and retail company called Femsa.
