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.

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

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.

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