Antitrust enquiry launching in Mexico

Mexico’s new regulator IFT (Federal Telecommunications Institute) will conduct a further investigation into the market dominance of the country’s operators.

Having been granted significant powers to reduce the monopolisation of the market, IFT is pursuing its antitrust agenda. It will attempt to determine whether operators are leveraging their footprint to gain an unfair advantage

America Movil’s mobile and fixed units are likely to come under scrutiny, after the IFT deemed the operator a “preponderant economic agent”. The operator has been attempting to sell off assets to lower its market share, which previously was around 70%.

While numerous foreign operators have been linked to a buyout of some of America Movil’s assets, no deal has been announced. AT&T was a potential candidate, but has since agreed to acquire Iusacell.

The inquiry, which should last no longer than 90 days, will investigate market dominance across voice, data and video channels – meaning that the TV sector’s market leader Televisa could become embroiled. It will be conducted at national level, but also at state, regional and local levels.

 

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