Mexico. The Plenary of the Federal Institute of Telecommunications, IFT, agreed to issue the "Technical Criterion for the calculation and application of a quantitative index in order to determine the degree of concentration in the markets and Services corresponding to the Telecommunications and Broadcasting sectors" (Technical Criterion).
This Technical Criterion is issued with the objectives of both publicizing the index through which the Institute will determine the degree of concentration in the markets corresponding to the telecommunications and broadcasting sectors; and to have a tool to identify concentrations that are unlikely to hinder, diminish, damage or impede competition and free competition.
The Technical Criterion is issued after having gone through a public consultation process carried out between October 26, 2015 and December 7, 2015, and states:
- Use the Herfindahl-Hirschman Index (IHH) to measure the degree of concentration.
- Thresholds for the IHH and its variation that will make it possible to identify concentrations that are unlikely to harm competition and free competition.
- That in no case will the Institute make its decisions using as its only element the IHH and the thresholds.
The Technical Criterion approved in the plenary session of March 17, 2016, will enter into force the day after its publication in the Official Gazette of the Federation and will replace the calculation methods published by the defunct Federal Competition Commission on July 24, 1998, which the Institute currently uses.
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